Multiplexes are expected to perform better in the first quarter of FY13, led by successful handling of films, as compared to all the quarters after the pandemic. RRR, KGF: Chapter 2 And maze 2. Chains like PVR and Inox Leisure Ltd. have revenues of Rs. 9.25 billion and Rs. 5.5 billion according to estimates by brokerage firms like Edelweiss and Elara respectively.
A note said, “Big Bollywood Content was expected to report a strong performance in Q1FY23, however it failed to perform at the box office, negatively impacting revenue growth for (series) PVR and INOX. This was offset by positive surprises from regional and Hollywood content.” The box office revenue for the two series by Elara Capital Ltd is expected to grow at 34% pre-Covid levels (Q1FY20). Other metrics like average ticket price (ATP) and spending per capita (SPH) had already exceeded pre-pandemic levels led by traction like 13% Hollywood hit in Q4FY22 Spider-Man: No Way Home Which was released at the end of December 2021. For Q1FY23, the brokerage expects ATP and SPH to grow by 23% and 20% respectively as compared to the pre-Covid levels.
Both Edelweiss Securities Ltd and Emkay Global Financial Services said the impressive box office can be attributed to regional language cinema. ,KGF: Chapter 2 became one of the highest-grossing films of all time Vikram, beast And Sarkaru Vaari Pata There are other regional films doing exceptionally well. PVR and INOX are likely to report ticket sales well above pre-Covid levels supported by ATP growth. Operating metrics should track well, with a recovery in advertising revenue as well as stable ATP and SPH quarter-over-quarter. Companies should also see positive cash generation,” a note from Emkay said.
Rajendra Singh Jyala, Chief Programming Officer, INOX Leisure Limited said that there have been some big-ticket Hindi releases in the past few months, which is probably explaining the box office silence for Bollywood. Referring to the sluggish performance of the titles, Jyla said, “Some of the mid-sized films haven’t done a great job, but we are confident to see the real numbers go up.” jersey, to attack, runway 34, Jayeshbhai Jordar And severalamong others.
However, all is not well for television broadcasters, who are likely to see flat subscription growth and sluggish advertising as sharp inflation has led to cut in advertising spending by consumer goods companies, which account for 60% of TV advertising.
“On the subscription front, the implementation of NTO (New Tariff Order) 2.0 has been extended till November and hence the pricing power of the players is likely to remain limited till then. As for ads, Zee is expected to grow 3% year-on-year and Sun TV at 2%; In terms of subscriptions, both are expected to post flat growth,” Edelweiss said adding that Zee will see a further impact on revenue as it exits the free-to-air TV segment. Overall, 3 from Zee and SunTV Revenue growth is expected at % YoY and 5.1% YoY decreases respectively.
Elara, which also expects flat subscription growth, said TV was the first traditional medium to recover to pre-Covid levels in FY12, however, recent inflationary pressures saw a negative impact on ad spend recovery and broadcasters have seen a reduction in advertising spend from FMCG. and new age internet companies. Total revenue for Zee and Sun TV is expected to grow at 4.7% and 23.2%, respectively, year-on-year, while operating profitability is likely to be muted for all broadcasters due to content investment and lower advertising revenue.
Broadcast networks like Star, Sony, Zee and Viacom18 did not respond Mint Questions on expected advertising revenue or subscription growth this quarter.
With the exit of free-to-air direct-to-home (DTH) platform DD Free Dish, major broadcasters such as Star India, Sony Pictures Networks India (SPNI), Viacom18 and Zee Entertainment said a senior official of a broadcasting network Hindi in particular exacerbated the decline of the GEC. The total active subscriber base of the four private direct-to-home (DTH) operators, Tata Sky, Airtel Digital TV, Dish TV and Sun Direct, fell from 68.89 million in September 2021 to 68.52 million in December 2021. Telecom Regulatory Authority of India (TRAI) report.
“Our understanding is that spending has increased significantly in the first quarter despite the adversity of inflation. Categories affected by supply chain issues and potentially drying up of PE money could be a concern. But overall the TV market is inflationary in the short term. It is,” said Vikram Sakhuja, Group CEO, Madison Media and OOH (Out of Home).
Deepika Bhasin, executive vice-president of planning at media agency Caret India, said regulatory changes and inflation will limit potential and add pressure to both broadcasters and advertisers. “Advertisers will work carefully on judicious choices of media mixes from broadcasters that help them reach consumers with optimum budget and impact,” she said.