Highlights of the call
- The management has seen slowdown in delivery of projects by realty players.
- In terms of footfalls, October was a slow month with footfalls down 13-14% on y-o-y basis. November was a better month with 3-4% growth on y-o-y basis until the Mumbai attacks. The first 15 days of December were bad and with 2 big releases there was some footfalls. However, on y-o-y basis it was down. January 2009 has been better and footfalls are higher on y-o-y basis.
- The Company would consolidate its subsidiaries from FY10.
- The effective tax rate for FY09 and FY10 would be 34%.
- The standalone debt is Rs 95 crore with cash of Rs 10-15 crore. Debt in PVR Pictures is Rs 50 crore with cash of Rs 100 crore. There would not be much increase in debt, as the company would also be repaying a part of debt. The average cost of debt is 12-12.5%.
- The advertising and royalty income was up 21% at Rs 10.75 crore. It would be difficult for the Company to maintain the revenues on the back of slowdown.
- For FY10, the Company would add about 41 screens. There has been fall in capex per screen by about 30% as many costs are borne by developers.
- The properties under operation at the end of December 2008 were 26 properties against 22 in the corresponding quarter previous quarter and 25 at the end of sequential quarter. The screens under operation at the end of December 2008 were 108 against 84 in the corresponding quarter previous year and 101 at the end of sequential quarter. Seat capacity at the end of September 2008 was 27827 against 21853 seats in the corresponding quarter previous year.
- The Company commissioned its property at Phoenix, Mumbai at a cost of Rs 88-90 crore which was financed thru equity of Rs 20 crore, debt from HDFC of Rs 50 crore and balance from PVR. The property is housed in CR Retail Malls (India)
- Geographical distribution, 49% seats are in North, 11% in South and 40% in West.
- The revenues from comparable properties were down 0.3% at Rs 62.3 crore whereas that of non-comparable/new properties was up 208% at Rs 15.1 crore.
- The footfalls for the quarter were 4.60 million against 4.76 million in the corresponding quarter previous year down 3%. Footfalls in comparable properties dipped 9% at 3.71 million.
- Overall occupancy was down 580bps at 34.7% with comparable properties occupancy down 480bps at 35.5%.
- The average number of shows is 5-5.25 per screen.
- On comparable basis, the ATP was up 1% at Rs 131, non-comparable/new properties were at Rs 185. The overall ATP for the quarter was up 8% at Rs 140.
- The average entertainment tax, as a % of gross ticket sales and income from revenue sharing was stable at 16.6%. 46 screens of the 108 screens under E-Tax exemption. Currently, 46% seats enjoy E-Tax exemption.
- PVR Pictures had revenues of Rs 60 crore and PAT of Rs 4 crore for 9MFY09. The Company has atleast one release for Q4FY09. The Company plans to release about 4-6 movies every year.
- PVR Goregaon, which is in Sunrise Infotainment, which operates 6 screens had loss of Rs 2.8 crore for 9MFY09.
- Blu O’s company’s first project – a 24-lane Bowling Alley Center at Ambience Mall in Gurgaon – is expected to commence operations in Q4 FY 2008-09.