PVR INOX Returns to Profit on Higher Ticket and Food Spending

Indian multiplex chain PVR INOX reported a strong fourth-quarter profit on Monday, driven by higher ticket prices and increased spending on food and beverages by moviegoers. The company posted a profit of 1.87 billion rupees for the quarter ended March 31, compared with a loss of 1.25 billion rupees a year earlier.

Revenue from operations rose nearly 26% to 15.47 billion rupees as customers spent more per visit. Average ticket prices increased 22% year-on-year to 315 rupees, while average spending on food and beverages climbed 32% to 165 rupees per person. Profit margins also improved significantly to 11.5% from negative levels a year ago.

Advertising revenue grew around 15%, supported by better occupancy rates and stronger demand from advertisers. Footfalls edged up slightly to 31 million viewers from 30.5 million last year. Despite the strong earnings, shares of PVR INOX closed about 4.5% lower on Monday, though the stock remains up around 4% so far this year.

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