PVR INOX to shut down 50 screens in the next six months
The newly-merged entity said the properties are loss-making or housed in malls that have reached the end of their life cycle with little hope of any revival
- May 15, 2023,
- Updated May 16, 2023, 12:56 AM IST
India’s largest multiplex chain PVR INOX plans to shut down 50 cinema screens over the next six months as the properties are loss-making or housed in malls, which have reached the end of their life cycle with little hope of any revival, the company said on Monday.
“These properties are loss making, or housed in malls which have reached the end of their life cycle with little hope of any revival. The company has taken an accelerated charge of the depreciation in its books and written off the Written-Down Value of assets,” said the firm in investor update presentation.
Erstwhile rivals PVR and INOX Leisure completed their merger in February 2023, to become the country’s largest cinema multiplex chain with 1,689 of India’s estimated 9,000 screens. The newly-merged PVR INOX’s screens are spread across 361 cinemas in 115 cities in India and Sri Lanka.
In the previous fiscal year, PVR and INOX launched 168 new screens in 30 cinemas, and the firm plans to open 150-175 more screens in FY24, according to the post-Q4 results press release. “Most of these screens are in different stages of fit-out. The company as a strategy has also realigned all upcoming handovers of new sites for fitouts to next calendar year till the time there is strong recovery in box office.”
“The year gone by marks the 1st full year of uninhibited operations for the exhibition industry. There was considerable volatility in box office quarter on quarter. We believe that the two major factors that marred the industry in FY23 – underperformance of Hindi films and less number of Hollywood releases, will both ease out in FY24,” said Ajay Bijli, Managing Director, PVR INOX.
He added that the recently culminated merger with INOX will act as a key milestone for the company and the Indian film industry as a whole. “The integration process is proceeding smoothly and we are confident of achieving operational synergies of Rs 225 crore over the next 12-24 months.”
The two erstwhile rivals announced their surprise merger in March 2022, after the pandemic led to extended lockdowns of cinema screens and rise of video OTT platforms. They officially merged on February 6, 2023.
Gautam Dutta, who was PVR CEO, and Alok Tandon, who was INOX Leisure CEO, have been made co-CEOs of the merged entity. Operationally, the former will look after North and South, and the latter West, East, and Central.
India’s largest multiplex chain PVR INOX plans to shut down 50 cinema screens over the next six months as the properties are loss-making or housed in malls, which have reached the end of their life cycle with little hope of any revival, the company said on Monday.
“These properties are loss making, or housed in malls which have reached the end of their life cycle with little hope of any revival. The company has taken an accelerated charge of the depreciation in its books and written off the Written-Down Value of assets,” said the firm in investor update presentation.
Erstwhile rivals PVR and INOX Leisure completed their merger in February 2023, to become the country’s largest cinema multiplex chain with 1,689 of India’s estimated 9,000 screens. The newly-merged PVR INOX’s screens are spread across 361 cinemas in 115 cities in India and Sri Lanka.
In the previous fiscal year, PVR and INOX launched 168 new screens in 30 cinemas, and the firm plans to open 150-175 more screens in FY24, according to the post-Q4 results press release. “Most of these screens are in different stages of fit-out. The company as a strategy has also realigned all upcoming handovers of new sites for fitouts to next calendar year till the time there is strong recovery in box office.”
“The year gone by marks the 1st full year of uninhibited operations for the exhibition industry. There was considerable volatility in box office quarter on quarter. We believe that the two major factors that marred the industry in FY23 – underperformance of Hindi films and less number of Hollywood releases, will both ease out in FY24,” said Ajay Bijli, Managing Director, PVR INOX.
He added that the recently culminated merger with INOX will act as a key milestone for the company and the Indian film industry as a whole. “The integration process is proceeding smoothly and we are confident of achieving operational synergies of Rs 225 crore over the next 12-24 months.”
The two erstwhile rivals announced their surprise merger in March 2022, after the pandemic led to extended lockdowns of cinema screens and rise of video OTT platforms. They officially merged on February 6, 2023.
Gautam Dutta, who was PVR CEO, and Alok Tandon, who was INOX Leisure CEO, have been made co-CEOs of the merged entity. Operationally, the former will look after North and South, and the latter West, East, and Central.