Multiplexes Sector Check - On Path To Normalisation: ICICI Securities

Multiplexes Sector Check - On Path To Normalisation: ICICI Securities

Red “Reserved” signs are displayed on seats to enforce social distancing measures at a movie theater. (Photographer: Jeoffrey Guillemard/Bloomberg)

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ICICI Securities Report

PVR Ltd. and Inox Leisure Ltd. sounded optimistic on normalisation, and are gearing up for a strong movie season.

We remain confident on bounce back with strong average ticket price and spend per head in Q2 FY22 despite sub-optimal operations.

Entire screens for PVR and Inox Leisure will be operational soon, though with certain restrictions; however, strong movie release and high frequency releases should help multiplexes have better programming slot.

While cost optimisation should help in driving higher margins on normalisation in H2 FY22, multiplexes have agreed to accommodate producers / distributors for higher share and faster over-the-top release.

We are excited about new opportunities emerging for multiplexes, particularly from gaming and sports.

Click on the attachment to read the full report:

ICICI Securities Multiplexes Sector Update.pdf
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