The rapid proliferation of streaming apps like Netflix was supposed to hit the theatre business, but going by recent events, there seems to be no cause for worry for lovers of traditional cinemas.
The latest proof for this came in the form of collection data from India’s leading multiplex chain PVR INOX.
The month of August has been a blockbuster for PVR, with two big releases - the Rajnikanth starrer Jailer produced by Sun TV and the much-awaited sequel Gaddar 2 produced by Zee. Jailer has done extremely well on the regional level.
“PVR INOX achieved the feat of highest ever monthly admissions and box office in the month of August 2023 after a robust June,” pointed out analysts from Nuvama Institutional Equities.
India’s largest multiplex chain set a new record on Independence Day this year by selling 13 lakh tickets worth Rs 40 crore. No wonder, then, that analysts are looking for a ‘record-breaking’ second quarter this time.
Recent releases such as Satyaprem ki Katha collected Rs Rs 80 crore, while Rocky aur Rani ki Prem Kahani saw collections of Rs 115 crore, the report said.
Among Hollywood movies, Oppenheimer, Barbie and Mission Impossible Dead Reckoning Part One have done quite well, noted the report by the broker.
Multiplexes are holding customised early morning shows for Bollywood movies at 5/6 AM.
This, said the analysts, “shows that Bollywood is back.”
The strong footfalls are not just setting the box office bells ringing, but also bringing in loads of ad money. Though it is yet to reach pre-Covid margins, the progress is promising, Nuvama said.
For now, the analysts pointed out, multiplexes seem to be immune to the slowdown in discretionary spending that seems to have hit other areas like quick service restaurants and apparel.
Future Perfect
The fun is not showing any signs of stopping, the analysts pointed out.
“September is beginning on a very positive note for PVR INOX due to Jawan...Jawan’s advance bookings have surpassed Pathaan’s to create an all-time record in presales.”, the broker said.
According to the latest box office collection data, the Shahrukh Khan-starrer has set a new record by becoming the biggest Hindi film opener ever with a collection of Rs 75 crores.
The upcoming months also look promising with movies like Ganpath, Tejas, Leo, Tiger 3, The Marvels and Fukrey 3 lined up for release.
The broker expects an increase in the earnings of shareholders in PVR INOX by 5.2% towards the end of the year. The company plans to open 150-165 new screens in 2024.
The company also plans to focus on expanding its food and beverage offerings. It has recently introduced food and beverage items beginning at Rs 99 which has worked well with the moviegoers.
However, the coming Cricket World Cup is expected to pose a small risk to the multiplex chains which could be overcome with the impressive content pipeline for the coming months.