On Monday, PVR Ltd reported a bigger-than-expected second-quarter loss, as lacklustre Bollywood and Hollywood movie performances attracted fewer crowds, hitting ticket prices.

PVR’s consolidated net loss for the second quarter narrowed to Rs 71.2 crore (USD 8.64 million) from Rs 153 crore in the pandemic-hit period a year ago. However, it exceeded analysts’ expectations for a loss of Rs 9.92 crore.

PVR said that average ticket prices during the second quarter were affected by the weak performance of Bollywood and Hollywood movies. As India inches towards normalcy after a prolonged period of a pandemic, production houses have started going with ‘theatre only’ releases banking on top celebrities.

The multiplex chain is ready to merge with rival INOX Leisure in an all-stock deal and become the country’s largest exhibition company with 1,546 screens across 109 cities.

Further, the shrinking losses underscore the gradual recovery in the movie business after the devastating Covid pandemic that lasted for more than two years. In its previous quarter, the multiplex operator revived its Capex plans significantly and laid out a plan to open 125 new screens this fiscal year.

PVR’s revenue from operations jumped 470.7 per cent on year to Rs 687 crore but declined 30 per cent from the previous quarter.