Its non-core businesses range from food and beverages to advertising.
Multiplex operator PVR is looking at increasing contribution from its non-core businesses such as food and beverages and advertising to reduce its dependence on ticket sales.
"We would like contribution of box office sales to go down so that dependence on ticket sales (goes down) ...while that is our core business ... that is the reason we exist but we would like the other revenue segments to come up in a way.. so that share of box office remains the same or goes down. We will be comfortable if it goes down slightly," PVR Chief of Strategy Kamal Gianchandani told PTI.
When asked about what ideal percentage contribution of box office sales to its total revenue should be, he said: "I am not putting any number to it .. It is coming down in a gradual fashion. We are happy if the same rate continues going forward. In the last 4-5 years, it has come down from 70 odd% to 57% at present".
For the nine-month period ended December 31, 2016, box office sales accounted for 54.7% of total sales (Rs 852.8 crore), while food and beverage and advertising contributed to 27.1% (Rs 422 crore) and 12.3% (Rs 192.3 crore) respectively. Around 6% (Rs 91.7 crore) sales came from other segments during the period.
In 2015-16, box office sales accounted for 57.4% (Rs 1,014.3 crore) of total sales.
Gianchandani said the company witnessed strong sales in the fourth quarter of previous fiscal on the back of strong content pipeline.
"This fourth quarter is the best we have seen in the last 7-8 years due to strong content pipeline. There was 'Dangal' which ran for 7-8 weeks .. It generated enormous amount of footfalls. Later, we also had 'Raees' and 'Kaabil', 'Jolly LLB', and the Oscar-nominated and Hollywood releases as well," he said.
"We have also got strong content pipeline for this fiscal. It is mix of Hollywood and big Bollywood films. It is a strong year in terms of content," he added.
PVR, which has launched various initiatives including theatre-on-demand service Vkaao, virtual reality lounges VR Lounge and 'Book now, Pay later' service, enabling micro credit facility to its customers, in 2017, said the company will announce more technology driven services going forward.
"Innovation is a key element of PVR's DNA and we are trying to come out with solution to fill customers need gaps. We are working on lot of tech driven initiatives. You will hear more from us going forward," Gianchandani said.
Gianchandani said the company expects theatre-on-demand service Vkaao to contribute 2.5% to 3% to its total sales in two years time.
PVR operates 570 screens in over 120 properties across India. It plans to open another 70-80 screens in the next fiscal.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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