COVID-19: Movie theaters stare at nearly Rs 7,800 cr monthly loss, hopeful of recovery
In the wake of malls and movie theatres across the country being asked to shut down due to the coronavirus pandemic, the film industry is staring at huge losses with several big-ticket releases being put on the backburner as well.
Tracking the impact of the shutdown on film exhibitors, CARE ratings has estimated that the temporary shutdown of film theatres across the country will to lead to a revenue loss of Rs 5,800 crore- Rs 7,800 crore per month for film exhibitors. Of this, Rs.3,500 – 4,500 will be for sale of movie tickets, including GST loss of Rs 800 – 1,000 crore.
Further, it says that loss of revenue on sale of food and beverages in theatres would amount to about Rs 1,500 crore – Rs 1,800 crore and an additional Rs 900 crore – Rs 1,000 crore will be lost on advertising income.
CARE ratings added that most film and TV show producers have decided to halt their shooting for a few weeks, till the virus subsides in the country. At the same time, release dates of most movies have been pushed to a later date. It says that a ripple effect has been created and this shall impact FY20’s last quarter revenues for film exhibitors.
According to Mohan Umrotkar, CEO of Carnival Cinemas, this quarter will be a complete wash-out for the company. Mohan estimates the business to be down by at least 40-50% compared to last year.