BSE:532689 | NSE:PVREQ | 58888:pvr | IND:Film/TV Production & Distribution | ISIN code:INE191H01014 | SECT:Media & Entertainment
As I write this letter, I am both humbled and honoured to share the story of another year’s journey with you. It has been a historic year for PVR and we have been able to achieve greater heights in our operating and financial performance. We crossed the landmark of 750 screens and served almost 100 Million patrons, a feat which places us amongst top 10 cinema chains globally in terms of admits. These landmarks provide us with greater impetus to take the business to the next level.
This year is also special as we successfully completed the acquisition of SPI Cinemas, south India’s largest cinema chain with presence in key markets of Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Kerala and Mumbai. The acquisition, largest so far in the Indian cinema industry, is strategic for us and I believe will create tremendous value for all the stakeholders. South India has been a focus area for us, given the low penetration of the multiplexes in that region.
SPI acquisition provides us an unparalleled platform to get deeper presence in that region. The acquisition not only cements our leadership position in the South Indian market but also gives us deeper inroads into the attractive regional movie industry, further diversifying the content risk of the business.
The integration process is going on well and we are very excited to welcome the talented SPI team into the PVR family.
During the year, PVR continued to aggressively expand presence by adding 138 screens including the screen additions due to acquisition of SPI Cinemas. Our network is well diversified across regions with 34% screens in South, 34% screens in West, 29% screens in North and 3% screens in East.
We closed the year with 164 properties with 763 screens across 65 cities across India.
The year gone by has given us tremendous confidence about reaching our target of 1000 screens in next couple of years.
Last year we also made significant investments towards digital transformation of the business and innovative customer engagement programs. Our PVR Privilege Programme has started to take shape and we now have more than 4.5 Million members, making it one of the leading loyalty programs in the country. This program is central to our initiatives of personalisation whereby we would deliver to our customer an experience which is specific for his consumption behaviour instead of ‘one size fits all’ approach. Our other customer engagement initiatives include ticket cancellation, Accessible Cinema program and innovative premium seating, all designed to provide convenience to our consumers.
We continue to innovate and remain a leader in bringing latest technologies and formats for our discerning consumers. Our cinema formats such as Director’s Cut, Gold Class, 4DX, IMAX, Playhouse, P [XL] and recently added PVR Onyx are all designed to provide an unparalleled and luxurious movie watching experience to our consumers looking for holistic out of home entertainment experience. Expansion of these premium screen formats is core to our expansion strategy and I expect that their proportion to our overall portfolio will increase quite significantly over the course of next five years.
This year also witnessed the reduction of GST rate from 28% to 18% on movie tickets above Rs.100 and from 18% to 12% for movie tickets up to Rs.100. This was a long pending demand from the industry which I believe will help to make the movie watching experience accessible to the larger population. I am personally thankful to the Government of India, GST Council and all the state governments in supporting this decision.
I believe that we are on fast track of growth through well-planned, focused strategic approach and regulatory tailwinds.
Our consolidated revenues for the year grew by 32% to Rs. 3,119 Crore from Rs. 2,365 Crore. Our EBITDA witnessed a growth of 43% from Rs.433 Crore to Rs. 619 Crore and EBITDA margins for the year were approx. ~20% which was higher by 160 bps as compared with FY 2017-18.
I strongly believe there is tremendous growth opportunity ahead of us before we realise our dream of ‘Movies for all’.
I take this opportunity to thank our employees as well as our business associates, for their hard work and commitment over the past year. On behalf of the Board, I would like to extend my gratitude to all of you, our shareholders, for your consistent support. Your constant support helps us grow and excel every year.
Chairman and Managing Director
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