NEW DELHI: India’s largest theatre chain PVR Ltd expects its latest acquisition — SPI Cinemas — to begin raking in as much as Rs 500 crore in revenues by the end of financial year 2019-20. This will be a 61.5 per cent jump in just two years, with the Chennai-based multiplex chain having recorded a turnover of Rs 309.6 crore in financial year 2017-18. SPI Cinemas, which operates 76 screens across 17 properties in 10 cities under brands like Sathyam, Escape, Palazzo, The Cinema and S2 Cinema, is to be taken over by PVR in a deal that values it at more than Rs 850 crore.
While PVR’s management did not specify any revenue targets or expectations for their newest addition when the deal was announced on Sunday, Kamal Gianchandani, PVR Pictures’ chief executive officer and head of strategy and planning, offered more insight during an analysts’ call that took place on Wednesday.
“We expect SPI Cinema acquisition to contribute Rs 500 crore revenue by financial year 2020. We also expect this acquisition to help us diversify content risk further with a good mix of regional, Bollywood and Hollywood films,” Gianchandani noted.
The acquisition does expand PVR’s screen rally in one shot, bringing it that much closer to its pan-India target of 1,000 screens by 2020. Post the transaction, PVR will have 706 screens operational across the country, also making it the operator of the largest number of screens in South India’s top three metros — Chennai, Bengaluru and Hyderabad.
Does the SPI acquisition herald more such ventures from PVR? “We are very conscious of (acquiring a player) that is a perfect fit in terms of quality and value proposition,” Gianchandani observed.
“There are not too many opportunities out there now...but if something comes our way, we will look at it,” he added.