Multiplex operator PVR Inox has reportedly experienced a quarterly loss of 3.33 billion rupees ($40.72 million), hit by one-time impairment charges and expenses related to the planned shutdowns of some cinemas.
The company, formed by the merger of India's top two multiplex operators earlier this year, said it took an accelerated depreciation charge of 105.8 million rupees on 50 loss-making cinemas it plans to shut down over the next six months.
Cinema operators in India have been struggling ever since the pandemic, when a lockdown forced people home and made streaming more popular among movie enthusiasts, prompting PVR and Inox to merge.
PVR Inox still plans to open 150-175 more screens in fiscal 2024.
"While there has been some volatility at the box office over the past few months, we are confident that this trend will settle down over the next two to three quarters," the company said in a statement.
Revenue for the quarter stood at 11.43 billion rupees, while total expenses were at 13.64 billion.
Bollywood hit Pathaan was among the few films that brought in customers in the quarter, while Hollywood films like Ant-man and The Wasp - Quantamania and John Wick-4 had a "decent performance," the company said.
Average ticket prices in the quarter decreased to 239 rupees from 244 rupees in the previous quarter, while the average food and beverage spend per patron was 119 rupees, down from 133 rupees.