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Tag: Indian motion picture

  • Encore! PVR repeats blockbuster results for Q2-2014

    Encore! PVR repeats blockbuster results for Q2-2014

    BENGALURU:  Indian motion picture exhibition, production and distribution house PVR Limited (PVR) repeated, actually bettered by far, its Q1-2014 stellar results during Q2-2014. PVR’s consolidated revenue for quarter ended 30 September 2013 stood at Rs 367.1 crore up 89 per cent as compared to Rs 193.6 crore during the corresponding period of last year and nine per cent more than PVR’s consolidated revenue for Q1-2014 which was Rs 337.3 crore.

     

    Consolidated profit after tax (PAT) at Rs 27.7 crore up by 71 per cent as against of Rs 16.1 crore in the September quarter last year (Q2-2013), and more than double the PAT of Rs 13.6 crore in Q1-2014.

     

    The company says that it has delivered a strong financial and operational performance in the quarter especially given that there were only two big releases – Chennai Express and Bhaag Milka Bhaag in the quarter as compared to five big films (Ek Tha Tiger, Barfi, Bol Bachan, Dark Knight  and Amazing Spiderman) a year-ago. The company also says that footfalls increased by eight per cent to 1.66 crore in the quarter while average ticket prices rose by four per cent as against same period last year.

     

    NOTE : (1) The board of directors in the meeting held on 15 June 2013, approved the composite scheme of amalgamation (Scheme) for the merger of Cine Hospitality Private Limited its wholly owned subsidiary and Cinemax India Limited along with its subsidiaries companies, namely , Nikmo Entertainment Limited, Odeon Shrine Multiplex Limited, Vista Entertainment Limited, Growel Entertainment Limited and Cinemax Motion Pictures Limited with the Company from the appointed date of 1st April 2013. As per the proposed Scheme, which is subject to approval of shareholders, creditors and regulatory authorities, the minority shareholders of Cinemax India Limited will receive equity shares of PVR Limited in the swap ratio of four equity shares of PVR Limited against seven equity shares of Cinemax India Limited. Further, SEBI, NSE & BSE have given their NOC in the current quarter and 7 December 2013 has been fixed by the Hon’ble High Court, New Delhi for holding the meeting of members and creditors of the Company.

     

    (2) The company in Oct 2013 entered into an agreement for sale of Anupam multiplex property located at Saket, New Delhi for a total consideration of Rs 52 crore. The sale and property is in line with company’s strategy to maintain an asset light business model.  The sale will release substantial capital to fund the future projects and enable the company to improve its Return on Capital Employed says PVR.1

     

    Let us look at the figures reported by PVR Limited for Q2-2014
    Exhibition Business

     

    PVR

    PVR’s standalone revenue of Rs 237.94 for Q2-2014 was 32 per cent more than the Rs 179.87 crore for Q2-2013 and 13.75 per cent more than the Rs 209.18 crore for Q1-2014.

     

    Expense for Q2-2014 at Rs 192.58 crore was 33 per cent more than the Rs 145.26 crore of Q2-2013 and 11 per cent more than the Rs 173.16 crore of Q1-2013.
    It’s EBIDTA for Q2-2014 at Rs 45.36 crore (Margin 19.1 per cent) as compared to the Rs 34.61 crore (Margin 19.2 per cent) for Q2-2013 and Rs 36.02 crore (Margin 17.2 per cent) for Q1-2014.111

     

    PVR’s standalone PAT for Q2-2014 at Rs 21.83 crore was 46 per cent more than the Rs 14.96 crore of Q2-2013 and more than a third (up 34 per cent) of the Rs 16.25 crore in Q1-2014.

     

    Cinemax

     

    Revenue for Q2-2014 from Cinemax at Rs 111.77 crore was five per cent lower than the Rs 117.44 crore for Q2-2013 and three per cent more than the Rs 108.62 crore for Q1-2014.

     

    Expense for Q2-2014 at Rs 84.43 crore was three per cent lower than the Rs 87.15 crore of Q2-2013 and 1.3 per cent lower than the Rs 85.52 crore of Q1-2014.
    EBIDTA for Q2-2014 was Rs 27.34 crore (24.5 per cent); for Q2-2013 – Rs 30.9 crore (25.8 per cent) and Rs 23.09 crore (21.3 per cent) for Q1-2014.

     

    Q2-2014 PAT at Rs 13.08 crore was 17 per cent lower than the Rs 15.81 crore of Q2-2013, but over 2 and half times (2.52 times) of the Rs 5.19 crore of Q1-2014.
    PVR says that Cinemax ATP was flat on account of harmonising of ticket pricing on weekdays and weekends in accordance with PVR pricing strategy and tax free Marathi films played in the western circuit.

     

    Food and beverage revenues grew by 25 per cent over corresponding quarter of previous year on account of success of the various strategic initiatives taken by the company. A 42 per cent growth in Sponsorship revenues reflected strong continuing positive performance year on year.

     

    PVR chairman cum MD Ajay Bijli said, “The strength of the film line up for the second half coupled with our solid first six months performance underpins our confidence that we are on track with our plans for the full year. We have maintained the position as the leading multiplex player in India and in this quarter we will surpass an important milestone of 400 screens in India.”

  • PVR announces blockbuster results for Q1-2014

    PVR announces blockbuster results for Q1-2014

    BENGALURU: Indian motion picture exhibition, production and distribution house PVR Limited (PVR) today declared stellar results for Q1-2014.

     

    Let us take a look at the performance for Q1-2014

     

    PVR’s consolidated revenues for Q1-2014 were Rs 337.3 crore as compared to Rs 180.7 crore during the corresponding period of last year (Q1-2013), up by 87 per cent. Consolidated EBITDA for Q1-2014 was Rs 61.4 crore as against Rs 34.6 crore in the same period last year, up by 78 per cent. Consolidated PAT for the quarter was Rs 13.9 crore in Q1-2014 as against of Rs 7.8 crore in the same period last year, up by 79 per cent.

     

    Correspondingly, PVR’s profit before tax for Q1-2014 grew by 64.5 per cent to Rs 19.7 crore from Rs 11.98 crore in Q1-2013. PVR had reported a loss of Rs 17.94 crore for Q4-2013.

     

    Net total income from operations for Q1-2014 was Rs 208.54 crore, up 29 per cent from the Rs 161.29 crore reported for Q1-2013 and 43 per cent higher than the Rs 146.2 crore reported for the preceding quarter (Q4-2013).

     

    Total expenses at Rs 183.16 crore were up 25.7 per cent from the Rs 145.68 crore during Q1-2013 and up 23.5 per cent as compared to the Rs 148.34 crore for Q4-2013.

     

    PVR says that its exhibition business in Q1-2014 grew on back of strong same store growth, addition of new multiplex properties and Cinemax multiplex circuit (post acquisition in January 2013). The revenue growth was driven by strong box office, food and beverage revenues and advertising revenues.

     

    Revenues from PVR’s movie exhibition more than doubled (grew by 111.5 per cent) at Rs 313.08 crore in Q1-2014 as compared to the Rs 148.05 crore reported for Q1-2013. Revenues for Q1-2014 were higher by 47.1 per cent as compared to the Rs 212.85 crore revenues that the company reported for Q4-2013.

     

    The other contributing segment to profits was ‘Others (includes bowling, gaming and restaurant services)’, revenues from which almost doubled (grew by 98.2 per cent) for Q1-2014 to Rs 18.91 crore from the Rs 9.54 crore reported for Q1-2013 and grew by 17.6 per cent as compared to the Rs 16.98 core revenues reported for Q4-2013. Segment results from the Movie production and distribution recorded a loss of Rs 0.96 crore for Q1-2014.

     

    During Q1-2014, PVR says that it had Rs 1.52 crore footfalls in its cinemas, up by 17 per cent as compared to corresponding quarter of previous year (Q1-2013). The average ticket price across the cinema circuit also grew by 10 per cent on the back of strong content and flexible pricing launched by company in various markets. Food and beverage revenues grew by 37 per cent over corresponding quarter of previous year. Sponsorship revenues also showed a stellar growth of 60 per cent over corresponding quarter of previous year.

     

    PVR chairman cum managing director Ajay Bijli said, “The revenues and profitability in the quarter has shown a robust growth over the same period last year. The integration of PVR & Cinemax at operating level is progressing well and the management is focusing on driving synergies from the combined scale of operations which is reflecting in the market share and the reported results. The string of big budget Bollywood Films like Chennai Express, Once upon a Time in Mumbai Again, Satyagraha, Krrish 3, Dhoom 3, Boss, Beshram, Singh Sahab the Great, Bullet Raja etc., will further augment the strong box office performance for the remainder of FY 2013-14.

     

    The company is bullish on its expansion plans and says that it intends to add 85-90 screens in FY 2013-14. During the Q1-2014, PVR added five properties with 35 screens across Kochi, Mumbai, Bangalore, Chandigarh and Delhi. On a combined basis, PVR and Cinemax have a network of 383 screens spread over 89 properties in 35 cities across the country.

  • Film industry up in arms against Service Tax on Copyright

    Film industry up in arms against Service Tax on Copyright

    NEW DELHI: A core committee comprising senior members of the film industry, along with Members of Parliament, will meet Finance Minister Pranab Mukherjee to voice their protest against the levy of service tax on copyright.

    The Film Federation of India FFI) , which will give detailed statistics stating the losses of the film industry and the meagre success rate, said that levy of service tax will sound the death knell of the Indian film industry and “we will be forced to shut down the entire Indian film industry”.

    In a resolution passed at a joint meeting of the Film Associations including Multiplex Associations of India at the South Indian Film Chamber of Commerce in Chennai convened by the FFI, it was stated that “this additional service tax will be a big burden and cannot be levied on the temporary transfer of copyrights.”

    The Indian film industry is highly volatile and statistics of the past 10 years show that only 7-8 per cent of the films all over India are successful and, thus, yield only the capital invested by the producer/rights holder along with a meagre profit. The rest of the films are big flops due to various reasons. The success rate in the film has been declining year after year.

    The ‘Government seems to be aware’ of only Hindi hits like ‘Bodyguard’ and are carried away by the collections of the film and feel the sector is making huge profits, FFI said. The films which fail to collect or which flop at the box office are not brought to the notice of the Government. Thus, the Service Tax has been imposed ‘with the idea of collecting more taxes from an ailing industry.’

    FFI pointed out that usually service tax levied is collectable from the end user of the services. Unfortunately the producers, distributors and exhibitors cannot pass on the service tax to the end user – the audience and the consumer – since most state governments have put a cap on the rates of admission in theatres.

    “In that case, the service tax has been absorbed only by the over burdened film industry, which is totally unacceptable. We would also like to bring to the attention of the governments that the film industry is already burdened with heavy taxation of entertainment tax by the State Government apart from VAT being levied by several states. This being the case, the film industry is probably the highest taxed industry in the whole of India without getting any subsidy or financial help either from the central government or state governments," FFI averred.

    Also present was K Vaitheeswaran, Advocate and Tax Consultant. FFI vice president Ravi Kottarakara was the convener of the meeting.

    The meeting was attended by office Bearers and senior members from the FFI, South Indian Film Chamber of commerce, Tamil Film Producers’ Council, Tamil Nadu Film Distributors’ Federation, Tamil Nadu Film Exhibitors Association, Kerala Film Chamber of Commerce, Kerala Film Producers Association, Film Distributors Association of Kerala, Kerala Film Exhibitors Association, Andhra Pradesh Film Chamber of Commerce, Telangana Film Chamber of Commerce, Telugu Film Producers’ Council, Chennai, Karnataka Film Chamber of Commerce, Kannada Film Producers’ Association, Cinema Owners and Exhibitors Association of India, Eastern India Motion Pictures Association, Kolkata, and Central Circuit Cine Association.

    FFI also has in its fold other important associations like the Indian Motion Picture Producers Association, the Akhil Bharatiya Marathi Chitrapat Mahamandal, the North India Film Association, Multiplex Owners Association of India, Delhi Film Distributors Council, Motion Picture Association, Bihar and Jharkhand Motion Picture Association, Indian Film Exporters Association, Motion Picture Association of America Inc, Kinematograph Renter’s Society Pvt. Ltd., Indian Documentary Producers Association, Chennai City Film Exhibitors Association, Film Makers Combine, Film & Television Producers Guild of South India, Graftii, South Indian Film Exporters Association, Telugu Film Producers Council, Hyderabad, Telugu Film Producers Association, Chennai, Tamil Nadu Film Distributors Council, Tamil Film Chamber of Commerce, The Indian Motion Picture Distributors Association, Western India Film Producers Association and Chamber of Movie & TV Programme Producers, Delhi.