PVR INOX (PVRINOX) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw a 40% sequential increase in box office collections, driven by strong Bollywood and Hollywood releases, but total income and profitability declined year-over-year, with admissions and occupancy rates also dropping.

• Re-releases contributed 6% of admissions, supported by curated content and producer partnerships, and have become a sustainable, profitable initiative.

• National Cinema Day attracted nearly 1 million guests, with total Q2 admissions reaching 38.8 million.

• The company continued to expand its screen network, opening new cinemas and maintaining a diversified presence across 111 cities.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY25, with a net loss reported for the quarter and half-year periods.

Financial highlights

• Q2 FY25 revenue was INR 16,419 million, EBITDA margin 12.6%, and PAT INR 224 million, all down year-over-year; standalone net loss after tax for Q2 FY25 was ₹124 million.

• H1 FY25 total income was INR 28,505 million, down 14.8% year-over-year; H1 PAT was -INR 1,142 million.

• Sale of movie tickets and F&B revenue declined 25.2% and 18.4% respectively in Q2 FY25 year-over-year.

• Net debt reduced by INR 1,409 million in H1 FY25; cash and cash equivalents at September 30, 2024, stood at ₹4,895 million standalone.

• Standalone EBITDA and operating margin for Q2 FY25 were lower year-over-year, with operating margin at 30.96% versus 36.29% in Q2 FY24.

Outlook and guidance

• Management expects robust performance in Q3 and Q4, with several major Hindi and Hollywood releases and a strong content pipeline.

• Full-year guidance includes opening 110-120 new screens and exiting 70 underperforming screens, with a net addition of approximately 50 screens.

• Next year, screen additions are expected to be around 100 per annum, with a growing share of asset-light and FoCO models.