buy and sell of entertainment & media PVR stocks buy sell stocks online

PVR Ltd (updated - 03 June 2009)
Multiplex operator PVR had a difficult start to 2008-09 with the IPL cricket tournament keeping people away from the theatres.
The year didn’t really end on a very happy note either because while revenues up a reasonably good 32 per cent at Rs 352 crore, the operating profit margins were down sharply by 500 basis points resulting in a near 60 per cent fall in net profit.

Occupancies during the year came off by just under 20 per cent and footfalls for comparable properties weren’t very encouraging.

The March 2009 quarter saw very few films doing really well — collections from the top performing films were down to a third of the levels seen in the December 2008 quarter.

While PVR did well to maintain its share of the box office collections, the average ticket prices for comparable properties were more or less flat.

Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but does not warrant or guarantee their accuracy or date.
Our site takes no responsibility for any investment decisions based on recommendations provided on website.

As a result, stand-alone revenues in the March 2009 quarter were up just 6 per cent and the company posted a marginal loss.

Of course the company has made investments in new properties and a bowling alley which should pay off later. However, it’s worrying that PVR Pictures, a subsidiary that produces films, has posted an operating loss, indicating how risky the business can be.

PVR plans to roll out 42 screens in the current year--it currently operates around 108 screens. While footfalls and occupancies should start looking up in the next few months, with several big releases scheduled.

However, the tussle between multiplex operators and film producers over the ratio for revenue sharing will hurt the company’s numbers for the June 2009 quarter.

PVR’s business model -exhibition, production and distribution of films and retail entertainment - has tremendous potential in a country like India where disposable incomes and aspirations are growing.

However, analysts believe that earnings growth this year will be helped more by the lower depreciation charges rather than any strong rise in the top line.
source - BS

PVR Ltd (updated - 17 Sept 2009)
The June 2009 quarter was expected to be a difficult one for multiplex operator PVR because of the dispute between film distributors and multiplex operators and virtually no films being released for nearly three months. So it wasn’t surprising that PVR, which will be operating 150 screens by the end of the year, reported a fall in revenues of 44 per cent.

That resulted in a loss at the operating level of Rs 8.9 crore and an even higher net loss of Rs 10.9 crore, taking the consolidated loss to Rs 12.8 crore.

Occupancies should have picked up in July and August, after dropping 17 per cent in the June 2009 quarter, from 32 per cent in the comparable period of 2008-09. That should improve the profitability of the business which has also been hurt because of some start-up losses incurred on new properties.

According to analysts, even though it may have been the protracted negotiations between distributors and exhibitors that disrupted PVR’s operations in the June quarter, the multiplex industry continues to run the risk of not being able to always access enough film content. In fact, the line-up of films in the March 2009 quarter too was unexciting, and according to industry watchers, 2010 will have very few big releases.

Since PVR commands a 10-12 share of box office collections, has diversified into other forms of entertainment and also produces some content, the business model is, to some extent, de-risked. Nevertheless, risks relating to the film business remain high; PVR Pictures, a subsidiary that produces films, posted an operating loss last year with profits from one film being eroded by losses on others.

Net profits last year were down nearly 60 per cent, though revenues rose agood 32 per cent to Rs 352 crore. In the current year, profits are expected to remain virtually flat, thought they could see a big jump in 2010-11 on a low base. At the current price of Rs 131, the stock trades at an expensive 22 times 2009-10 estimated earnings, but a far more reasonable 12 times 2010-11 earnings.
source - BS