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Pay cheques aren’t increasing and the economy is going down the sink. So what? Let’s escape to a good movie.
That seemed to be the sentiment that made multiplexes enjoy an excellent year in 2012. Top multiplex chains such as PVR, Inox Leisure and Cinemax saw their stock prices soar by 120-250 per cent.
A flurry of large box-office grossers, more people thronging to theatres, stealthy increases in ticket prices and healthy binge-ing on food and beverages while they were at it, helped mutiplex owners report much improved financials in 2012.
Of course, consolidation in the industry with deals such as PVR-Cinemax and Inox-Fame being stitched also helped stock prices zoom.
The multiplexes saw the revival in big banner movies (Rs 100 crore plus) in 2012. Movies such as Ek Tha Tiger, Barfi, Jab Tak Hai Jaan , Rowdy Rathore set the box office registers ringing. Even many smaller budget movies such as Vicky Donor and Kahaani had excellent ticket collections.
With larger multiplex chains gobbling up smaller competitors, the stage is set for the likes of PVR and Inox to have a stronger pan-India footprint.
A 11-15 per cent increase in ticket prices and 16-20 per cent rise in spends per head on food and beverages, as a result of increased occupancies, have had a favourable effect on multiplex profit margins too.
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