ICRA added that higher average ticket prices (ATP, up 10-15% in FY2023 compared to pre-pandemic levels) and spend per person (SPH, up 30-35%) on food and beverage (F&B) will enhance total revenue growth. 

Overall revenues and operating margins are likely to rise in H2 FY2023e, thanks to a recovery in the highmargin advertising business, which underperformed pre-pandemic levels by 35-40% in H1 FY2023, stated ICRA.

ICRA estimates that multiplex industry revenues will exceed pre-pandemic revenues (FY2020 revenue) by 6-8% in FY2023e. 

ICRA added that higher average ticket prices (ATP, up 10-15% in FY2023 compared to pre-pandemic levels) and spend per person (SPH, up 30-35%) on food and beverage (F&B) will enhance total revenue growth. 

Despite revenue and margin growth, current occupancy levels (at 27-29%) remain below pre-pandemic levels of 32-33%. 

"The return of the windowing gap (the time between theatrical release and release on other platforms) to pre-pandemic levels of eight weeks, beginning in August 2022, is likely to be beneficial to exhibitors. F&B income will be supported by expanded menu options, appealing marketing offers, increased points of sale, and some inflation-driven price increases," stated ICRA. 

Overall revenues and operating margins are likely to rise in H2 FY2023e, thanks to a recovery in the highmargin advertising business, which underperformed pre-pandemic levels by 35-40% in H1 FY2023. In comparison to operational losses in the previous two years, the industry profitability margin is predicted to be 14-16% (adjusted for Ind-AS 116) for the full fiscal FY2023.

Ritu Goswami, Sector Head, Corporate Ratings, ICRA, said, “The film exhibition industry has witnessed a healthy rebound in performance in YTD FY2023, evidencing that the “Cinema Experience”
continues to have a pull on the consumers. Given the healthy content pipeline in the coming months and encouraging consumer sentiments towards watching movies in theatres (after a hiatus forced by the pandemic), the occupancy levels are expected to improve in H2 FY2023."