Kotak Securities downgrades PVR
Data shows that there has been a structural change in consumer behavior – it seems that their threshold for tolerating bad content is very low, even films made by big banners have flopped when they failed to impress the audience.
While Bollywood is expected to present better content in the near future, it will still be an uphill task to pull audiences to theaters and match the pre-pandemic levels.
Meanwhile, theaters are also facing competition from OTT, which is raising the bar of content. Viewers are turning towards OTT for good content from the comfort of their homes.
Kotak Securities has downgraded PVR as it said that PVR Inox occupancy for the last 9 months is around 26% against the pre-pandemic normal occupancy of 32%.
Going forward, the company said there will be around 150 bps on EBITDA margin and around 8-10% decline in EBITDA. This has brought down the merged entity’s FY24 occupancy by 29% and EBITDA by 15%.