New Delhi: PVR Inox, a leading theatre chain, has reported a significant rise in earnings from its food and beverage (F&B) sector for the fiscal year 2023-2024.
As per reports, F&B revenue increased by 21 percent, to Rs. 1,958.4 crore, from Rs. 1,618 crore the previous year. In contrast, movie ticket sales increased by 19 percent to Rs. 3,279.9 crore, from Rs. 2,751.4 crore in 2022-2023.
Nitin Sood, Group CFO of PVR Inox, stated that the slower release of hit movies contributed to this trend. Worldwide box office this year will aggregate at $32.3 billion, down by more than $1 billion from the $33.9 billion earned in 2023, according to research firm Gower Street Analytics.
Additionally, Karan Taurani, senior vice-president of Elara Capital explained that the rise in F&B revenue is due to the expansion of PVR outlets in both metro and non-metro areas, allowing people to enjoy food without necessarily watching movies.
Last year, a tweet went viral stating that popcorn at cinemas costs more than a month's subscription to an OTT service. In response, PVR introduced new offers, including bottomless popcorn tubs. Sharing a picture, they wrote, "We at PVR believe that every opinion matters and must be respected. We have this update for you and for every moviegoer in India #PVRHeardYou."
Notably, last week, quick-service restaurant operator Devyani International Ltd (DIL) and cinema exhibitor PVR INOX announced plans to jointly establish a company focused on developing and operating food courts within shopping malls across India. The partnership aims to extend the market presence of both companies and attract a broader audience. In a joint statement, the firms emphasized that this collaboration would strengthen DIL's position in India's food court sector and create new opportunities for growth and expansion.
Ravi Jaipuria, DIL's Non-Executive Chairman, stated, "This partnership further consolidates DIL's position in the food courts business in India and has paved the way for additional growth and expansion opportunities. DIL is committed to expanding its food courts business in India as one of the strategic future growth pillars."
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