PVR INOX (PVRINOX) Q4 09/10 earnings summary

Executive summary

• FY10 consolidated revenue was Rs 3,439.0m and net profit Rs 13.5m, down from Rs 3,637.1m and Rs 87.1m in FY09; the year faced a multiplex-producer dispute and weak attendance early on.

• Film exhibition performance improved after the dispute ended in Q1; hit films in H2 and 28 screens added at five locations supported recovery.

Financial highlights

• Consolidated operating income was Rs 3,341.3m vs Rs 3,521.1m YoY; EBITDA was Rs 440.1m vs Rs 588.4m, and profit before tax Rs 7.0m vs Rs 109.5m.

• Consolidated net profit was Rs 13.5m vs Rs 87.1m; EPS was Rs 0.57 vs Rs 3.72.

• Standalone revenue was Rs 2,806.5m vs Rs 2,787.1m; EBITDA was Rs 317.3m vs Rs 502.1m, and net profit Rs 2.6m vs Rs 126.5m.

• Consolidated operating cash flow was Rs 294.8m vs Rs 414.1m; investing cash outflow was Rs 838.0m.

Outlook and guidance

• Planned 50–60 additional screens in the following year; management expected footfall growth after adding 28 screens and viewed occupancy recovery in FY11 as likely.

• FY11 outlook was positive, with performance expected to show continued growth barring unforeseen circumstances.

• Industry outlook projected 8.9% CAGR for 2010–14, with multiplex occupancy expected to improve in FY11.