Hollywood Saves PVR Inox as Bollywood Bombs at Box Office

International theaters helped India’s largest movie operator PVR Inox boost first-quarter revenue as Hindi films failed to attract audiences to theaters. The struggling Hindi film industry, coupled with the popularity of streaming services, has made it difficult for traditional theaters to attract larger audiences. The company said the June quarter got off to a slow start with limited Hindi releases, but the number of Hollywood movies hit its highest level since the pandemic began. This helped the company’s operating income grow by more than 30% to Rs 1,305 crore.

In May, in addition to “The Fast and the Furious” and “Guardians of the Galaxy”, the box office also accelerated with the release of the controversial “Kerala Story”. Three are from Hollywood, it added. As a merged entity, PVR Inox posted a net loss of Rs 816 million in the second quarter, compared with a net loss of Rs 333 crore in the previous quarter.

According to analysts at Emkay Research, it holds about 35% to 40% market share in the Bollywood film exhibition market. This was due to higher spending on food and beverages and higher costs for movie screenings. India’s largest theater operator, with 1,702 screens, has been counting on Hollywood’s “Oppenheimer” and “Barbie” to fill theaters of late, with its pre-sales totals being the highest of any film outside of the Marvel or Avatar franchises .

Ajay Bijli, Managing Director, PVR Inox said, “It is heartening that non-traditional films like ‘Barbie’ and ‘Oppenheimer’ have achieved huge success in India, which clearly shows that audiences are choosing the big screen for Get a unique cinematic experience.” The company said it was “optimistic” for the rest of the year, with mid-range Hindi films showing improved performance. Shares of PVR Inox rose 2.4% on Tuesday.

© Thomson Reuters 2023