Kotak Securities Downgrades PVR
Photo: PTI
#MarketsWithETNOW | Bollywood suffers as many big-budget movies fail at the box office.… t.co/XtpoK7HNrw
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This data suggests that there has been a structural shift in consumer behavior. Consumers seem to have a very low threshold for accepting bad content. Even movies propped up by big banners failed when they failed to impress their audience.
However, while Bollywood is expected to churn out better content in the near future, drawing audiences to theaters and meeting pre-pandemic levels is still a daunting task.
Meanwhile, movie theaters also face competition from OTT, which raises the bar for content. Audiences are directed to her OTT for great content from the comfort of their own home.
Kotak Securities downgraded PVR as it said PVR INOX occupancy over the past nine months was around 26% compared to a normalized occupancy of 32% pre-pandemic.
Looking ahead, the company says occupancy will impact EBITDA margins by approximately 150 bps and EBITDA by approximately 8-10%. His 24-year occupancy rate for the combined company was reduced by 29% and EBITDA by 15%.