Multiplex operators, who depend on footfalls and occupancies to drive sales from tickets, food and beverage and advertising, have seen their revenues collapse for the second quarter in row as theatres remained shut. Reported loss for PVR
in the first half of the financial year stood at Rs 409 crore on revenues of Rs 165 crore while that for Inox was Rs 145 crore on revenues of Rs 8 crore.
Both operators have drastically cut down their fixed costs since the start of the lockdown by reducing headcount, negotiating with mall owners and developers for lower rentals and revenue share contracts instead of fixed lease payments. They have also received a waiver on rentals and common maintenance charges during the lockdown period.
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