PVR revenue may take a hit on Coronavirus breakout

PVR has said that the company’s revenue may get affected as cinemas have been closed on account of Coronavirus breakout.

As per the government order, the cinemas have to continue remaining closed till March 31, 2020 as the number of Coronavirus cases are increasing.

The company’s revenue mix comprises of movie tickets (54 per cent), food & beverages (29 per cent), advertisement (10 per cent), convenience income (five per cent) and others (two per cent).

The company’s geographical mix includes 34 per cent in South, 31 per cent in West, 29 per cent in North and six per cent in East. As Coronavirus is spreading quickly in the southern region, that is, mainly in Kerala and Karnataka, the revenue would get affected as south is the highest contributor to PVR’s total revenue.

The sentiments around the stock have weakened and the stock price of PVR has fallen sharply by more than 38 per cent since February 1, 2020 after the fear of Coronavirus has speeded.