Isec reports-Multiplexes

Result Update – PVR Ltd
PVR reported weak Q2FY22 results as expected.

• Reported revenue came in at | 120.3 crore, (up ~197% on washout base). PVR reported box office revenue of | 53.1 crore and ad revenues of | 7.7 crore. The company reported | 44.5 crore of F&B revenues and | 5.1 crore of movie distribution revenues
• EBITDA loss (without impact of Ind AS116) was at | 115.4 crore vs. EBITDA loss of | 121.5 crore in Q1. On a reported basis, EBITDA loss was at | 68.1 crore
• The reported net loss was lower at | 153.1 crore largely due to inclusion of rental waiver of | 133.2 crore as other income

Key triggers for future price performance

• Reopening of theatres to drive recovery in footfalls/revenues with release of big budget Hindi/Hollywood movies lined up
• The company is likely to have ~10% permanent saving in costs (ex-rental) given the rationalisation measures
• Consolidation (10-15% single screens may be shut permanently) which will drive increased market share of multiplexes

Result Update – Inox Leisure
Inox reported weak Q2FY22 results as expected.

• Reported revenue was | 47.4 crore (vs. negligible revenues in Q2FY21). The box office revenue was | 27 crore while F&B revenue was | 15 crore
• EBITDA loss (without impact of Ind-AS 116) came in at ~| 64.6 crore. On a reported basis, EBITDA loss was | 38.6 crore
• Inox recognised | 54.3 crore as rent concessions. On a reported basis, net loss was at | 87.6 crore vs. estimated loss of | 122.6 crore, largely due to rent concession recognition. Ex- Ind AS116 basis, loss was | 68

Key triggers for future price performance

• Reopening of theatres to drive recovery in footfalls/revenues with release of big budget Hindi/Hollywood movies lined up
• Consolidation (10-15% single screens may be shut permanently), which will drive increased market share of multiplexes
• Benefits of permanent saving in costs (ex-rental) given the rationalisation measures