PVR INOX (PVRINOX) Q4 05/06 earnings summary

Executive summary

• FY06 total income rose 52% to Rs. 10,743 lacs; EBITDA increased 47% to Rs. 1,930 lacs and PAT to Rs. 547 lacs.

• Cinema patronage reached 8.78 million, up 78% YoY; average occupancy was 46% vs. 40.3% in FY05.

• Expansion lifted the operating circuit from 39 to 51 screens during FY06 and to 70 screens by July 2006.

Financial highlights

• Total revenue was Rs. 10,743 lacs vs. Rs. 7,066 lacs in FY05; net operating revenue grew 50% to Rs. 10,302 lacs.

• Net ticket sales increased 47% to Rs. 6,557 lacs; food and beverage revenue rose 49% to Rs. 2,125 lacs.

• EBITDA was Rs. 1,930 lacs vs. Rs. 1,316 lacs; profit before tax was Rs. 900 lacs vs. Rs. 527 lacs.

• PAT was Rs. 547 lacs vs. Rs. 374 lacs; basic and diluted EPS were Rs. 2.62 vs. Rs. 2.71 in FY05.

Outlook and guidance

• Expansion plan targets ~200 additional screens over the next 3 years; low-cost multiplex pilot projects were planned for FY07.

• Growth plans include maximizing revenue at existing cinemas, expanding into smaller towns and lower-income catchments, and developing film distribution.

• Positive outlook was linked to brand recognition and investment in multiplexes and film rights; management expected greater operating leverage as investments scaled.