PVR Inox (combined entity) performance was weaker than expected at operating levels, while one-off charges further increased the losses.
Q4FY23 Earnings Summary
Reported revenue came in at | 1143 crore, (up 34% YoY and down 21% QoQ) on proforma basis and tad lower than expectations of | 1212 crore. It reported box office revenue of | 602 crore (up ~21% YoY and down ~18% QoQ on proforma basis) with footfalls (up ~21% YoY and down ~18% QoQ) at 30.5 million (expectations of 31.8 million) and (Average Ticket Prices) ATP at | 238 was up ~3% YoY and flat QoQ. Pathaan was the only blockbuster movie of the quarter, while most movies underperformed. The ad revenues stood at | 90.7 crore, down 21% QoQ was reflective of weak content. The company reported | 352 crore of Food & Beverage (F&B) revenues, with Spends per head (SPH) at | 119, up 13% YoY
EBITDA (without impact of Ind AS116) was at | 5 crore (our expectations | 40 crore), with margins at 0.5% (lower than 3.5% expected) given the weak box office performance. On reported basis, EBITDA was at | 264 crore (margin of 23.1%)
The reported loss was | 333 crore. The company reported loss (without impact of Ind AS116) at | 285.7 crore. There were one-off charges like a) impairment of WIP ~| 11 crore, b) Accelerated dep ~| 11 crore c) Merger expenses | 5.5 crore and d) Deferred tax write off | 134 crore. These charges exacerbated the losses at bottomline levels
ICICIdirect Research view on PVR Inox Ltd Stock
View: We expect Multiplexes to face challenge till there is consistency in content performance. Near term monitorable, thus, is big ticket content performance recovery, which has seen inconsistencies post covid. For the medium to long term, key trigger will be synergy benefits (management has guided for EBITDA synergy benefit of | 225 crore over 12-24 months). We will come out with an update soon.
Impact - Negative
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