PVR Inox Sets Stage For Stellar Q2 Performance With Record August Box Office Numbers

PVR Inox, the largest cinema exhibitor in India, has reported an exceptional performance during the Independence Day weekend and the month of August, setting the stage for a robust second quarter. 

“During the Independence Day weekend, we welcomed an impressive 34 lakh moviegoers, and our Gross Box Office Collection (GBOC) exceeded Rs 100 crore,” PVR Inox Co-CEO Gautam Dutta told BW Businessworld. 

“August proved to be a record-breaking month for us, with an astounding 1.89 crore footfall – the highest ever recorded in a single month. The box office revenue for August reached an impressive Rs 532 crore for PVR Inox alone, underscoring the company's strength and resilience.”

Dutta expressed confidence that this momentum would carry PVR Inox into a successful second quarter and the approaching festive season. “Cinema is a unique experience; once people start enjoying it, they tend to return for more, as it becomes something of an addiction,” he noted. 

“We have recently witnessed strong performances from films like 'Gadar 2', 'OMG 2' and 'Dream Girl,' and we have promising releases like 'Jawan' and 'Salaar' on the horizon. September is shaping up to be an exciting month, and we are optimistic about finishing the quarter on a high note with strong box office numbers,” Dutta added.

ICE Theater 

PVR Inox introduced an ICE Theater in Bengaluru on Friday, third of its kind in India, which aims to redefine the cinema experience. PVR Inox seeks to offer consumers a remarkable and immersive experience that sets cinema apart from home entertainment through this new premium format.

“We aim to provide technology that takes them out of their home comfort zone and makes them say, 'wow, this is brilliant and this is nothing I can get at home,'” explained Dutta regarding ICE technology. “ICE's immersive approach aims to make the cinema experience impressive and captivating, giving people a reason to leave their homes and look forward to an experience they have never had before.”PVR Inox ICE TheaterDutta said that the ICE format received a fantastic response during the Independence Day weekend in Delhi and Gurugram. Only two out of 1700 PVR Inox auditoriums were equipped with ICE technology before Friday, but they performed exceptionally well, with packed auditoriums and strong ticket sales. 

Premium Segment Boom

Today, PVR Inox's strategy includes a strong focus on the premium segment, which currently accounts for approximately 13.5 per cent of their screen count. These premium formats (IMAX, Director’s Cut, Insignia, Gold and more) contribute significantly to revenue due to slightly higher average ticket prices (ATP) and increased food consumption. The company's approach involves launching premium formats in select cities and expanding if the response is positive.

“Our focus on the premium segment stems from a strategic perspective,” Dutta emphasised.

 “Currently, approximately 13.5 per cent of our total screen count is dedicated to premium formats. These screens contribute upwards of 16-17 per cent of our revenue due to slightly higher average ticket prices (ATP) and increased food consumption from premium audiences. This premium offering is not only profitable but also enhances our brand's reputation and momentum.”

F&B Strategy

In terms of Food and Beverages (F&B), PVR Inox is committed to enhancing the movie experience. Diverse offerings, including non-veg options and festive menus crafted by celebrity chefs, have been introduced lately. Innovative campaigns like the Rs 99 weekday offer and a unique combo with bottomless popcorn and Pepsi have also gained popularity. The company is aligning its F&B strategies to enhance the festive season's enjoyment.

“Our Food and Beverages segment is evolving to enrich the movie experience,” Dutta remarked. “We're aligning our product and marketing strategies to capitalise on the upcoming festive season, ensuring that food and beverages complement the joy of cinema.”

Ticket Prices And Screens

As for ticket prices, Gautam Dutta clarified that there would not be significant changes in the coming months. Pricing strategy depends on the scale and type of films being shown. PVR Inox offers a wide range of ticket prices, from Rs 75 to Rs 1400 or Rs 1500. Consumers have various options to choose from, and ticket prices vary based on factors like showtimes and film popularity.

“There will not be any significant changes in movie pricing in the coming months,” Dutta explained. “Our pricing strategy largely depends on the scale and type of films being shown. It is important to note that PVR Inox is currently one of the most premium cinema chains in India.”

The company has plans to expand by opening between 150 to 175 screens in the fiscal year of 2024. In the first quarter, 31 screens were successfully launched, followed by an additional 12 screens in the second quarter.