PVR will increase ticket prices by up to 23%, says CEO

28 Jul 2022 , 07:58 AM

PVR, the largest multiplex chain in India, increased ticket prices by up to 23% to account for inflation, labour costs, and redevelopment costs, according to CEO Gautam Dutta who told ET. This helped the firm produce its best-ever quarterly sales which exceeded Rs1,000 crore

“We used to raise the pricing by 5-7% every year, but we haven’t been able to do that for the past 2.5 years. We had to raise the prices because the cost of power, rent, and maintenance increased during this time “Dutta remarked.

The CEO stated that he anticipated growth to continue even if movie theatre attendance has not yet reached pre-Covid levels.

By Q3 FY23, the theatre chain hopes to reach pre-pandemic levels of advertising revenue as it introduces fresh methods for interacting with customers within the theatres, according to Dutta.

Prior to the pandemic, advertising contributed roughly 11% of the company’s income; PVR anticipates regaining that percentage by Q3 FY 2023.

In 2022—2023, PVR plans to open roughly 100—110 screens, up from the 80—90 screens it typically opened in the year before the pandemic. The corporation plans to invest Rs400 crore during this fiscal year, the majority of which would be used to renovate the current theatre.

PVR recorded losses of Rs748 crore in FY21 and Rs488 crore in FY22 due to restrictions placed on cinema operations by several state governments in March 2020 to stop the spread of the Covid-19 pandemic.

The company wants to expand into seven new cities this year, and theatre attendance is currently at 87% of pre-Covid levels.