Hike in ticket prices for 3 Idiots helps multiplexes to post better Q3 results
By Imran Khan
Monday, February 08, 2010
 Multiplex operators have been smiling since the release of 3 Idiots, which hit multiplexes on Christmas day last year. Other big movies such as AB Corp’s Paa and two Hollywood blockbusters 2012 and James Cameron's epic motion picture Avataar, in the same month last year, also helped multiplexes post a blockbuster third quarter.
PVR Cinemas posted a net profit of Rs 6.76 crore as compared to Rs 4.55 crore in the corresponding quarter last year. PVR’s Q3 profit has seen a surge of 48.57 per cent in end 2009 while, the total revenue for the company also increased by 10 per cent to stand at Rs 89.82 crore.
“One of the main factors for growth in revenue in Q3 was the theatre occupancy, which was the result of very good content. The other major factor was that producers and distributors for 3 Idiots asked multiplex operators to increase the ticket prices which helped revenue go up. While other movies such as Avataar were charged at normal ticket pricing, the higher pricing for 3D must have got in the big bucks,” says Pramod Arora, CEO, PVR Cinemas.
“The losses incurred by cinema operators during the two-month strike was levelled in the second quarter itself,” adds Arora.
Inox Leisure also posted strong results for the quarter, posting a net profit of Rs 8.74 crore as against Rs 3.99 crore for the same quarter in the previous year. The total income from operations stood at Rs 84.28 crore, an increase of 29.24 per cent. Inox’s total income for the Q3 in 2008 was at Rs 65.21 crore.
“The content in Q3 really derived revenue for the multiplex and the last quarter saw big movies including 3 Idiots. The second quarter for Inox was also good, but the initial demand for content in Q3 made the multiplex profitable,” says Harsh Vardhan Gangrude, Marketing Head, Inox.
Post its results, Inox Leisure acquired 50.48 per cent stake in Fame India Limited in an all cash deal for Rs 79.25 crore. The tie up enables the duo to own a multiplex network with a combined strength of 55 multiplexes, 204 screens, and a total seating capacity of 57,891 seats.
While 3 Idiots and Avataar grossed maximum amount to stand as the biggest hits in Bollywood and Hollywood respectively in 2009, the two movies also set a benchmark in online booking. Bookmyshow.com, the e-ticketing website announced that the sale of online tickets for 3 Idiots and Avatar amounted to Rs 9 crore and Rs 6.21 crore respectively.
Meanwhile, other major cinema chain operators such as Cinemax India Linited and Big Cinemas, the exhibiting subsidiary of Reliance MediaWorks owned by ADA group also posted a big amount for the quarter.
Cinemax posted a net profit of Rs 7.04 crore as against Rs 1.58 crore in the same quarter a year ago. The exhibitor’s total revenue from the operations for the third quarter stands at Rs 46.96 crore up by 53.91 per cent.
The revenue for Big Cinemas also rose by 51 per cent to stand at Rs 153 crore as compared to Rs 101 crore in the previous year. However, the consolidated revenue for Reliance MediaWorks was down by 4.17 per cent at Rs 207 crore. The company’s consolidated revenue for the same quarter in the year ago period was at Rs 216 crore.
In Q3 2009, Reliance MediaWorks partnered with In-Three to convert contents from 2D and 3D in India. The company also acquired UK-based ILab for high-end processing of film, television, commercial and short productions contents. Besides these, the company also hosted a premier of the two biggest hits in line – Paa and 3 Idiots.
Closed on the heels of posting good results in Q3, PVR Cinemas has announced the opening of its new multiplex at Raipur, Chhattisgarh taking the screen count upto 112 at 27 locations across 15 cities in 10 states and one union territory.
Cinemax, infact added two additional screens in the eastern suburbs of Mumbai and inaugurated the multiplex by releasing movie such as Chance Pe Dance and 3 idiots. The company at present operates total 28 theatre properties with 90 screens across India.
My Name Is Khan and the next edition of the Indian Premier League (IPL3) are the next big ticket events that multiplex operators are looking forward to.
“We are not banking much on IPL3. The ticket prices for the IPL matches will be some what similar to movies. It will have normal advertising. There are certain restrictions for the onscreen advertising, with the IPL and we may not get revenue out of that,” explains Arora.
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