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Tag: Cinema exhibition

  • Cineline India’s revenue from operations saw a 12.7 per cent steep decline

    Cineline India’s revenue from operations saw a 12.7 per cent steep decline

    Mumbai: Remember those carefree days when a weekend meant one thing—heading to the cinema, popcorn in hand, with family or friends by your side? Or the thrill of slipping out of a college lecture, knowing a movie adventure awaited? Those were the golden days of cinema. Yet, post-Covid, the big screen seems to have lost some of its allure, and Cineline India’s recent Q2 FY25 results tell a sobering story. Released today, the report reveals an industry grappling with the harsh realities of a shrinking audience base and mounting financial strain. For the quarter ending 30 September 2024, Cineline’s revenue from operations saw a steep 12.47 per cent drop, falling to Rs 5,583.66 lakhs from last year’s Rs 6,378.72 lakhs. As operational expenses climb and finance costs escalate, the road to profitability is riddled with challenges.

    The numbers reveal a company grappling with mounting expenses and shrinking profits. Total income for the quarter was Rs 5,617.60 lakhs, a decline from the previous year’s Rs 6,455.44 lakhs. Cineline’s movie exhibition cost—a significant operational component—reached Rs 1,583.38 lakhs, compared to Rs 1,931.11 lakhs last year. This reduction in costs was likely an attempt to mitigate the impact of lower revenues; however, it did not prove sufficient to offset other rising expenses. Notably, finance costs surged to Rs 727.95 lakhs, from Rs 716.53 lakhs in Q2 FY24, placing further pressure on profit margins.

    Cineline’s operating loss for continuing operations stood at Rs 607.30 lakhs, a sharp contrast to last year’s profit of Rs 702.36 lakhs. This swing into negative territory highlights Cineline’s current financial strain, driven by a combination of weaker income and heightened expenses. Although depreciation and impairment expenses rose to Rs 550.60 lakhs from Rs 489.09 lakhs, the overall expenses have grown notably, stressing the profitability margins.

    Further complicating Cineline’s financial landscape are discontinued operations associated with R&H Spaces Private Limited, its wholly-owned subsidiary classified as ‘Non-Current Assets held for sale’. This segment reported an after-tax loss of Rs 348.10 lakhs, exacerbating the company’s financial position. This negative outcome contrasts sharply with last year’s profit of Rs 15.51 lakhs, a downturn driven by market fluctuations and an inability to find prospective buyers swiftly enough to offset expenses.

    For stakeholders, Cineline’s Q2 FY25 results indicate an increasingly challenging environment in cinema exhibition. While the company has undertaken cost-cutting measures, the sharp decline in revenues and heightened financial costs have reduced the scope for quick turnaround. As Cineline aims to divest from non-core assets and consolidate its focus, the current financial constraints reflect a period of adjustment and realignment. However, the path to recovery may hinge on the company’s ability to attract new investment, manage rising operational costs, and secure strategic divestitures for better liquidity.

    Cineline India Q2 FY25 Financial Highlights:

    1.    Revenue Decline: Revenue from operations dropped by 12.47 per cent YoY to Rs 5,583.66 lakhs, down from Rs 6,378.72 lakhs in Q2 FY24.

    2.    Total Income: The total income stood at Rs 5,617.60 lakhs, a decrease from Rs 6,455.44 lakhs last year.

    3.    Operational Loss: Operating loss for continuing operations was Rs 607.30 lakhs, a reversal from last year’s profit of Rs 702.36 lakhs.

    4.    Increased Finance Costs: Finance costs rose to Rs 727.95 lakhs from Rs 716.53 lakhs in Q2 FY24.

    5.    Overall Profit/Loss: Net loss from continuing and discontinued operations was Rs 963.07 lakhs, reflecting the challenging operational environment.

     

  • Box office records its best performance post-Covid in Jan-Apr: Report

    Box office records its best performance post-Covid in Jan-Apr: Report

    Mumbai: Box office numbers reach Rs 4,200 crore during January-April recording the cinema exhibition industry’s best performance post-Covid, as per a report by cinema advertising company Interactive Television, GroupM India and media consulting firm Ormax Media.

    The report titled ‘India is back…at the theatres’ found that average monthly box office collections stood at Rs 1,000 crore. “These milestones have been achieved despite the impact of the third wave and 18 percent of cinemas still being closed since 2019,” said the statement.

    “K.G.F: Chapter 2” is the best performing film of the quarter with Rs 1,008 crore in collections so far, followed by “RRR” and “The Kashmir Files” with gross collections of Rs 875 crore and Rs 293 crore, respectively. The report also indicates that in-cinema footballs have recovered compared to 2019 levels.

    While there were no Hollywood blockbusters released during January-April, the report indicates that with the strong line-up of Hollywood movies slated for the rest of the year, 2022 collections may surpass 2019 gross box office collections of Rs 1,595 crore for Hollywood movies. “Doctor Strange in the Multiverse of Madness” which was released in May has done very well and upcoming films such as “Avatar: The Way of Water”, “Thor: Love and Thunder”, and “Black Panther: Wakanda Forever” are expected to beat previous records.

    The future of regional cinema namely Marathi and Punjabi cinema looks positive with four Marathi films crossing rupees one crore in their opening weekend collection. Hindi cinema contributed 38 per cent to the box office and almost 60 per cent of this share comes from Hindi dubbed versions of South India films, primarily “K.G.F: Chapter 2” and “RRR”.

    GroupM South Asia CEO Prasanth Kumar, said “It is good to see the cinemas back on track. Five months into this year and we are seeing very promising numbers in terms of box office collection and consumer footfalls in the theatres. Movies have always been India’s favourite source of entertainment and this year looks very optimistic to us in terms of recovery, following two years of slowdown due to covid. This report will help advertisers plan their campaigns appropriately and it will help revive the in-cinema advertising domain which in turn will help recover the previously slowed down economy.”

    Interactive Television (iTV) founder and managing director & Kinetic India managing director Ajay Mehta said, “With the return of audience into the cinemas, we are also seeing major advertiser interest picking up on where it was left in 2019. We have already seen more than 350 brands active in cinema and with the festive season, we expect it to go much beyond that. The operating capacity of the cinema halls is set to cross the 90 per cent mark by mid-year. With several big-ticket releases planned across languages for the rest of 2022, we are very optimistic about this year’s cinema AdEx (advertising expenditure) as India comes back to its favourite entertainment hub.”

    The report states that 2022 is expected to be the strongest year ever at the Indian box office. With the resurgence of cinema, the medium is also attracting advertisers from various spectrums of the industry. As per GroupM, around 280 brands advertised their products/services in the opening week of “K.G.F: Chapter 2”.

    “Over the last two years, when cinemas were shut due to the pandemic, many analysts were quick to write an obituary of the theatrical medium,” said Ormax Media founder and CEO Shailesh Kapoor.

    “The first four months of 2022 have proven how far removed from reality that analysis was. The theatrical medium has not only bounced back but emerged as stronger than it has been in decades. 2022 will be the biggest box office year till date, and by a good margin too,” he added.

  • PVR becomes first exhibitor in India to achieve the 500-screen mark

    PVR becomes first exhibitor in India to achieve the 500-screen mark

    NEW DELHI: PVR has become the largest cinema exhibition company in the country, reaching the mark of 500 screens across the country and become the first exhibitor to do so.

    This achieves comes at a time when the number of single screen theatres is said to be dropping below 10,000 and multiplexes are just around 1000 in a country which has several lakh viewers every day.

    PVR, which now reaches 45 cities pan-India, began its journey in 1997 with the opening of India’s first multiplex cinema PVR Anupam in Saket.

    This led, in turn, to superlative movie experiences. From the first screening of Shahrukh Khan’s “Yes Boss” to Priyanka Chopra’s “Jai Gangaajal” this week, PVR Anupam laid the bedrock for a major business in entertainment.

    PVR’s advent into the multiplex industry came at a time when the entire fate of the movie business was uncertain. Triggered by video piracy and the dilapidated condition of cinemas with poor projection & sound quality, unhygienic atmosphere, dark & dingy environment, people were becoming averse to watching movies at cinema halls. 

    PVR provided choice to consumers to watch any movie under a single roof by way of a clean & hygienic place, staff serving in clean uniforms and a colourful ambience, it transformed the way millions of Indians consume movies. In a way PVR is being credited of ‘Taking India to movies’, reviving the movie industry when all seemed lost.

    Unaware of the multiplex format, PVR had to convince the government authorities, rewrite building bylaws that it was possible to have four cinemas under one roof without compromising on safety parameters.

    Considering India as a heterogeneous market, PVR has given the Indian audience a grand spectra of cinema formats like PVR Heritage, PVR Premier, PVR IMAX, PVR Director’s Cut, PVR Gold Class, PVR Premiere, PVR Talkies and the latest addition being PVR Icon & PVR Superplex.

    A company of many firsts in the Indian multiplex industry, PVR is India’s first fully digital cinema chain and the first in India to sign a 50 screen deal pan India with Dolby Atmos.  PVR is the first to offer online ticketing, queue- less box office through Quick-TIx Counters,  QR code ticketless entry, and ‘on the seat’ food offerings. PVR is also the first multiplex chain to install 3D enabled screens at all its multiplexes.

    Primarily starting as a north centric cinema brand, PVR assumed status of a national cinema chain within 4 years of its starting operations.  The acquisition of Cinemax India in 2012 propelled India into the big league. Being the largest cinema chain in India & entertaining over 70 million patrons, PVR’s dominance in the multiplex industry in India now extends to 501 screens, 111 cinemas in 45 cities across India. PVR has achieved a steady year on year growth with over 18 years of its existence redefining the way people watch movies with the launch of various formats under the gamut of cinema viewing experiences.

    Speaking on the occasion of achieving this milestone, PVR chairman & managing director Ajay Bijjli said “We are very excited to achieve the historic milestone of 500 screens. PVR always pushed the envelope to provide unique cinematic experiences for its audience. We are privileged to have been supported by millions of movie goers across India who have appreciated the brand and made it bigger. We cannot thank enough our shareholders and investors who have shown immense faith in us over the years. With this achievement we continue to inspire excellence in the industry and achieve another milestone of 1000 screens by 2018.”

  • PVR becomes first exhibitor in India to achieve the 500-screen mark

    PVR becomes first exhibitor in India to achieve the 500-screen mark

    NEW DELHI: PVR has become the largest cinema exhibition company in the country, reaching the mark of 500 screens across the country and become the first exhibitor to do so.

    This achieves comes at a time when the number of single screen theatres is said to be dropping below 10,000 and multiplexes are just around 1000 in a country which has several lakh viewers every day.

    PVR, which now reaches 45 cities pan-India, began its journey in 1997 with the opening of India’s first multiplex cinema PVR Anupam in Saket.

    This led, in turn, to superlative movie experiences. From the first screening of Shahrukh Khan’s “Yes Boss” to Priyanka Chopra’s “Jai Gangaajal” this week, PVR Anupam laid the bedrock for a major business in entertainment.

    PVR’s advent into the multiplex industry came at a time when the entire fate of the movie business was uncertain. Triggered by video piracy and the dilapidated condition of cinemas with poor projection & sound quality, unhygienic atmosphere, dark & dingy environment, people were becoming averse to watching movies at cinema halls. 

    PVR provided choice to consumers to watch any movie under a single roof by way of a clean & hygienic place, staff serving in clean uniforms and a colourful ambience, it transformed the way millions of Indians consume movies. In a way PVR is being credited of ‘Taking India to movies’, reviving the movie industry when all seemed lost.

    Unaware of the multiplex format, PVR had to convince the government authorities, rewrite building bylaws that it was possible to have four cinemas under one roof without compromising on safety parameters.

    Considering India as a heterogeneous market, PVR has given the Indian audience a grand spectra of cinema formats like PVR Heritage, PVR Premier, PVR IMAX, PVR Director’s Cut, PVR Gold Class, PVR Premiere, PVR Talkies and the latest addition being PVR Icon & PVR Superplex.

    A company of many firsts in the Indian multiplex industry, PVR is India’s first fully digital cinema chain and the first in India to sign a 50 screen deal pan India with Dolby Atmos.  PVR is the first to offer online ticketing, queue- less box office through Quick-TIx Counters,  QR code ticketless entry, and ‘on the seat’ food offerings. PVR is also the first multiplex chain to install 3D enabled screens at all its multiplexes.

    Primarily starting as a north centric cinema brand, PVR assumed status of a national cinema chain within 4 years of its starting operations.  The acquisition of Cinemax India in 2012 propelled India into the big league. Being the largest cinema chain in India & entertaining over 70 million patrons, PVR’s dominance in the multiplex industry in India now extends to 501 screens, 111 cinemas in 45 cities across India. PVR has achieved a steady year on year growth with over 18 years of its existence redefining the way people watch movies with the launch of various formats under the gamut of cinema viewing experiences.

    Speaking on the occasion of achieving this milestone, PVR chairman & managing director Ajay Bijjli said “We are very excited to achieve the historic milestone of 500 screens. PVR always pushed the envelope to provide unique cinematic experiences for its audience. We are privileged to have been supported by millions of movie goers across India who have appreciated the brand and made it bigger. We cannot thank enough our shareholders and investors who have shown immense faith in us over the years. With this achievement we continue to inspire excellence in the industry and achieve another milestone of 1000 screens by 2018.”