PVR INOX MD: Lower Ticket Price a possibility going ahead!
PVR INOX, MD, Ajay Bijli has said, “It's quite possible in H2 FY24 we may have a lower ticket price.” According to him, Average Ticket Price (ATP) in cinema houses may reduce in second half of current financial year.
Cinema goers may have some good news in th remaining part of the financial year. The multiplex owners may go in for cheaper tickets in the coming months to attract viewers.
Addressing a concall after the announcement of Q2 results, PVR INOX, MD, Ajay Bijli said, it’s quite possible in H2 FY24 may have a lower ticket prices. According to him, average ticket price (ATP) in cinema houses may reduce in second half of current financial year.
High ticket prices:
ATP in cinema houses had increased 25 per cent year-on-year to reach all time high levels of Rs 276 in Q2 FY24. The metric was Rs 221 in year ago period. Bijli said, the ATP, has increased in last one year mainly due to inflation. Bijli said ATP depends on the contenty. When there are blockbuster releases, the ATP goes up.
According to Bijli, “ A few southern states have capped ticket prices.” So, the multiplexes cannot hike prices in these states based on demand-supply dynamics. These states are Tamil Nadu, Andhra Pradesh and Telangana.
He said the food and beverage spend in cinemas is also going up. The per head F&B spend was Rs 136, up 15 per cent from Rs 118 in year ago period. Bijli said “Earlier, F&B spend would go up 7.5 per cent to 8.5 per cent every year. But in Q2 FY24, it has gone up 15 per cent.” Going forward, Bijli expects F&B spend to stabilise at the current levels. This is an indication that the cinema chain may not be looking to reduce F&B prices.
According to PVR INOX, ED, Sanjeev Kumar, the cinema chain had recently introduced new offers on F&B segment to correct price conception of cinema and food being expensive. The offers are not for a limited time. The cinema chain intends to continue with such offers in F&B segment.
PVR INOX had recently introduced Rs 99 offer on F&B segment from Monday to Thursday of every week. While, on weekends, the cinema chain has announced free refills on large size popcorn and Coke.
Increased footfalls:
PVR INOX reported 64 per cent YoY rise in footfalls in Q2 FY24 to 4.84 crore from 2.96 crore in year ago period. Currently, the chain has 1,708 screens in the country.