Movies

Multiplex operators post weak recovery in FY’10

The multiplex operators were up against the wall in FY’10. The first quarter was gobbled by a bitter row with the film producers, freezing fresh movie content from the Bollywood studios. Revenues went for a toss as they tried to source alternate content and tapped regional language movies.

The bruise didn’t disappear in a hurry as the revenue-share arrangement increased their content costs. The release window shortened as film producers had to find space in the clutter. The situation worsened as most of the movies bombed at the box office.

Corrective measures were taken and the major players hiked ticket prices while their expenses also deepened. Revenue for the fiscal jumped but operating profit took a knock.

Revenue soars

The combined turnover of the five listed cinema exhibitors stood at Rs 13.73 billion in FY’10, up 21.47 per cent over the earlier year. The major reason was hike in the ticket prices and some blockbuster movies in between (like 3Idiots, Ajab Prem Ki Gajab Kahani etc).

Reliance Mediaworks, Fame India and Cinemax saw maximum growth in revenues, jumping 39.5 per cent, 28.7 per cent and 25 per cent for each of them. Inox Leisure saw a moderate 12.6 per cent growth, while PVR had a measly 3.2 per cent increase in its income.

Higher expenses as distributor payout increases

Multiplex operators had to cough out more to the film distributors due to the new revenue share agreement.

Though the companies kept control over personnel costs, their interests in organic and inorganic growth led them to invest to build or acquire properties. This resulted in increase in expenses.

Expenses in the fiscal stood at Rs 13.59 billion, up 24 per cent, from Rs 10.98 billion in FY09. (Disclaimer: All expenses figure are on approximate basis barring PVR, as the companies have not given the expenses for the exhibition segment separately.).

Fame India, Reliance MediaWorks and Cinemax had seen over 30 per cent increase in their expenses during the fiscal, compared to the year-ago period.

Inox saw a 16.5 per cent rise in expenses over the year-ago period, while PVR kept the expenses under control with just over one per cent increase over the earlier year.

At the operational level, all the exhibitors had a bad year as between the two fiscals, their profit narrowed by 58.3 per cent in FY’10 over the year-ago period. The FY’10 operating profit stood at Rs 179.09 million as compared to operating profit of Rs 429.69 million.

The companies who suffered the most were Fame India (down 80.3%), and Cinemax (down 64.07%). However, Reliance MediaWorks, which had suffered an operating loss from the exhibition sector during FY’09 (Rs 454.56 million), increased the losses by nine per cent to Rs 495.37 million in the fiscal 2009-10.

The cinema exhibitors are expected to put up a better show in FY’11 with an increase in ticket prices and, hopefully, more successful movies.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/02/fax-800x800.jpg?itok=jTkCFrnA
Sony Le Plex HD to premiere Foxcatcher in India

“A coach is a father. Coach is a mentor. Coach has great power on an athlete’s life,” says John Du Pont, the coach of team Foxcatcher.

Movies Hollywood
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/02/kahaani-2-800x800_0.jpg?itok=vi8AEWx6
Kahaani 2: Durga Rani Singh......Predictable story

Sequel is a misnomer for films using a similar or the same title as an older film including, surprisingly, not always successful ones. The use of an old title and, if possible, the protagonist from the earlier film seem to suffice. In Kahaani 2: Durga Rani Singh, the common factor as in Kahaani (...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/02/dashing.jpg?itok=0yAM4SrU
Zee Classic to air Dharmendra movies from 5-9 December

MUMBAI: The he-man's fans are in for a sweet surprise next week.

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/01/Transformers.jpg?itok=PLJ3sgAf
&pictures to premiere 'Transformers: Age of Extinction' on 2 December

MUMBAI: Enviable structures, remarkable visual effects and electrifying action sequences- The iconic Transformers series has never failed to flabbergast the viewers. To flavor up your weekend, &pictures, Naye India Ka Blockbuster Movie Channel is all set to premiere the blockbuster film...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/30/rajkumar-800x800.jpg?itok=UiPHalmO
CineAsia to honour Akella; feature Shyamalan's 'Split'

The Motion Picture Association Asia-Pacific Copyright Educator Award will be bestowed on comScore India managing director, theatrical, Rajkumar Akella, at CineAsia in Hong Kong. comScore which is an American media measurement and analytics company providing marketing data and analytics to many of...

Movies Hollywood
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/29/Dear%20Zindagi.jpg?itok=t5N1hFIl
Star power fades away, collections crumble

*Writer-director Gauri Shinde followed her success of English Vinglish with Dear Zindagi. To her advantage, she had the reigning star, Shah Rukh Khan, along with an emerging star, Alia Bhatt, to boast of in the cast.

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/28/robot-800x800.jpg?itok=ajjH6ifG
Leading Korean filmmaker impressed by Rajini 'Robot'; keen to co-produce with India

Critically-acclaimed Korean filmmaker Kim Jee-Woon, whose action thriller 'The Age of Shadows’ is the Closing Film for the International Film Festival of India, said it would “surely be great” to incorporate elements of cinema from both countries into each other’s films.

Movies Regional
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/26/SonyMax.jpg?itok=yeelQmkG
Sony Max brings 'No Talkies Nautanki Returns' for media agencies

MUMBAI: Sony Max gave Bollywood enthusiasts a reason to rejoice as it kick-started the third season of its flagship event, No Talkies Nataunki Returns. Organised exclusively for media agencies, this property is an absolute treat for movie buffs as it provides them an opportunity to participate in...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/11/26/SidGanis-800x800_1.jpg?itok=kGJEW5ws
Academy wants to expand relationship with India film industry

MUMBAI: Former president of Academy of Motion Picture Arts and Sciences (AMPAS) and American Motion Picture executive and producer Sid Ganis has said that the Academy has been developing a close relationship with the Indian filmmakers. At the 47th International Film Festival of India (IFFI)...

Movies Hindi

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories