The country's leading multiplex chain, PVR Cinemas, is exploring options to expand its operations overseas by running theatres on management contracts, a top company official said today.
The country's leading multiplex chain, PVR Cinemas, is exploring options to expand its operations overseas by running theatres on management contracts, a top company official said today.
The New Delhi-based listed entity would be the second such media and entertainment player to enter the global market after Anil Ambani-led ADAG's Big Cinemas that operates screens in Malaysia and the US markets.
"We are exploring options to enter the international market. We might run a few theatres on management contracts. However, we still feel that there is a huge scope in the Indian market where the demography is changing every five
miles," PVR's Group president, Pramod Arora, told PTI here.
He, however, would not divulge any further details on the same.
The company presently runs about 142 screens at 32 locations across 18 cities in India and plans to open another 80-100-screens in FY 12 at an investment of Rs 100-120-crore, Arora said.
"We will be present in at least 27 cities by end-this fiscal. By then we will have around 242-screens. The new additions this year would be cities like Kolkata, Howrah Ranchi and Patna," Arora said.
On the growth story of Indian cinema and entertainment, Arora said that the cinema exhibition industry in India is growing at 10 per cent per annum driven by multiplexes.
Favourable demographics, tax exemptions, quality locations such as malls and willingness of the people to spend on recreation are driving growth of multiplexes.
"In the next two years, the market size will be somewhere around 1,600-1,700, when every city and town including Tier III towns will have a multiplex. By then, we will have at least 500-screens," Arora said.
Asked about its revenue growth, Arora said the company expects a flat growth in the fourth quarter as usually it is a 'weak' quarter with not many films at the box office.
However, he said, the company expects a healthy growth in margins as well as top-line on the back of a restructuring exercise done at the management level.
"The occupancy level has gone up by 7% and like-to-like sales has increased by 19%. We expect an overall sales of Rs 400-crore for the full year. Growth will also come from the major restructuring exercise that we undertook at the management level," he said.
Last fiscal (FY 10), PVR's consolidated net profit fell by 84.50% to Rs1.35-crore.
Favourable demographics, tax exemptions, quality locations such as malls and willingness of the people to spend on recreation are driving growth of multiplexes.
"In the next two years, the market size will be somewhere around 1,600-1,700, when every city and town including Tier III towns will have a multiplex. By then, we will have at least 500-screens," Arora said.
Asked about its revenue growth, Arora said the company expects a flat growth in the fourth quarter as usually it is a 'weak' quarter with not many films at the box office.
However, he said, the company expects a healthy growth in margins as well as top-line on the back of a restructuring exercise done at the management level.
"The occupancy level has gone up by 7% and like-to-like sales has increased by 19%. We expect an overall sales of Rs 400-crore for the full year. Growth will also come from the major restructuring exercise that we undertook at the management level," he said.
Last fiscal (FY 10), PVR's consolidated net profit fell by 84.50% to Rs 1.35-crore.
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