Earnings Call Q4 FY18 Key highlights :-
- No of screens – 49 new screens opened in FY18. 23 screens ready to open once mall owners clears regulatory issues. 90+ screens expected to open in FY19
- Capex – INR 350 cr in FY18 including DT acquisition. Expect ~INR 400 to 450 cr of capex going forward on new screens, upgrades and renovation
- Per screen capex of ~INR 3 cr remains same
- OTT platform impact – management sees this as positive cycle – more revenue earned by content partner through additional channels leading to more investment in content created and hence more films to be screened
- All new releases will have 8 weeks of exclusive theatrical window as per new agreements being signed
- On straight to Digital content – HBO has been doing this in the past so no new concept. Will not impact their business as all such films are small/medium budget films but big budget films business model is defeated if not released in theatrical
- On expected fund raise utilization – Cinema business will consolidate further and they want to be ready for to take grab any opportunity that may arise
- Market Share – 25% of overall theatrical business of a film
- ATP increased during the Q4 FY18 (10% y-o-y)
- ATP to grow at inflation rate in future (4-5% in the long term basis)
- Q4 FY18 Ad revenue growth 37% y-o-y
- Expects 15-20% growth in Ad revenue driven by creating more/new spaces/inventories
- Online ticket booking – JD is not the partner anymore
- Higher receivables due to change in billing cycle owning to GST implementation
- South India is one of the most profitable market, Occupancy is very high in south market because of lower penetration
- No major difference in tier 1 & tier 2 cities revenue profile
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Earnings Call Q3 FY18 Key highlights :-
- Ad revenue and ATP increased during the Q3 FY18 (10% and 7% y-o-q respectively)
- Ad revenue growth driven by increase in volume. Price growth was marginal due to tax issues
- Expects 20% growth in Ad revenue in future
- Cost is marginally down because of advantage of input credit mechanism in GST
- South India is prominent as part of expansion strategy, as low number of screens in that region
- 67% of new screen additions in FY17-18 are in South India
- 36 screens opened in 9M, FY17-18, 31 screens scheduled to open in Q4 FY17-18. 20% of future screens to be premium end screens
- Recently agreed with major studios on new windowing strategy with respect to OTT and TV.
- In future, theatrical release window – 6 weeks from release, post that Pay per view window can be opened. Post 8 weeks of release, subscription view/TV window can be opened
- New screen addition – difficult regulatory/real estate situation on the ground leading to delay in opening new screens
- Acquisition of small stake in US company – luxury cinema concept. Unique model – F&B revenue is higher than ticketing revenue
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