NEW DELHI: It's a season of underdogs.
And for multiplexes, this is proving to be a blessing in disguise.When the much-hyped blockbusters like Salman Khan-starrer Race 3, Rajnikanth's Kaala and Hollywood movie Jurassic Park failed to live up to expectations, 's leeper hits' such as Raazi, Veere Di Wedding, Parmanu, Baaghi 2 and 102 Not Out saved the day for multiplexes in June quarter.They should also help the multiplexes report better numbers than the year-ago quarter, when blockbuster 'Baahubali 2' had ensured strong footfalls.PVR will outperform in box office collections and Inox in ad revenues, said ICICI Securities in earnings preview.Nirmal Bang Institutional Equities expects Q1 revenues for PVR and INOX to jump 9.3 per cent and 7.9 per cent respectively, led by nearly 7 per cent YoY growth new screen addition, a modest decline in YoY occupancy rate, low single-digit increase in ticket prices and high single-digit to low double-digit growth in food beverages' spend per hour (SPH).
Decent box office collections from small-budget movies would aid footfalls in multiplexes, said Emkay Global Financial Services, which expects 5 per cent YoY growth in footfalls for PVR and a 1 per cent de-growth in footfalls at Inox Leisure.
The brokerage sees 2 per cent growth in average ticket price (ATP) for both companies.In terms of ad growth, brokerages largely expect PVR to report flattish growth and Inox Leisure to deliver 20 per cent expansion.Going ahead, investors would be eying any MA announcements by the two listed firms, as some 15-20 regional players with 20-80 screens have emerged potential boyout candidates.
Investors would keenly follow screen rollouts plan that have been unimpressive over the past few quarters.
Besides, commentary on potential consolidation in the industry, stabilisation of the theatrical window at eight weeks, future content to be released in the second quarter and competition from over the top (OTT) media services will be keenly tracked, Nirmal Bang Institutional Equities said.