PVR INOX to Close 50 Underperforming Cinema Screens

Mumbai: PVR INOX, a prominent cinema exhibitor, has announced the closure of approximately 50 underperforming cinema screens within the next six months. These closures are a result of the screens being identified as either loss-making or situated in malls that have reached the end of their life cycle with little potential for revival. As part of this decision, PVR INOX has taken an accelerated charge of depreciation and written off the remaining value of assets associated with these screens.

Despite the closures, PVR INOX has ambitious plans for expansion. The company aims to open 150-175 screens in the upcoming financial year 2023-2024, demonstrating its commitment to growth. Currently, there are already nine screens in operation, with 15 awaiting commercial licensing and 152 in various stages of the fit-out. PVR INOX has strategically reorganized its site handovers for fit-outs to align with the anticipated full recovery of the business. Additionally, the company has a strong pipeline of screens earmarked for development over the next five years, indicating its positive outlook on future opportunities.

In the financial report for the fourth quarter ending March 31, 2023, PVR INOX posted a consolidated net loss of Rs 333.99 crore, while revenue from operations stood at Rs 1,143.17 crore. Despite this loss, the company remains optimistic about the potential for increased footfall, as spending per head and average ticket prices are higher compared to pre-COVID levels. PVR INOX believes that increased footfall will be a key driver of revenue growth in the fiscal year 2023-2024.

Overall, while PVR INOX is closing underperforming screens, it remains focused on its expansion plans and optimistic about future opportunities within the cinema exhibition industry.