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    Media and Entertainment Industry Brief

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    rutveek shah
    The media and entertainment industry in India is estimated to be worth $32 billion in 2022 and expected to reach $53.99 billion by 2026. Increasing smartphone and internet access have helped the growth of the industry. PVR Cinemas is a major player in the entertainment industry and was founded in 1997; it merged with INOX Leisure in 2022 to become the second largest cinema chain in India. The financial analysis of PVR shows a large reduction in revenue and profits from FY20 to FY21 due to COVID restrictions, though assets and reserves have increased over time.

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    Media and Entertainment Industry Brief

    Uploaded by

    rutveek shah
    14 views11 pages
    The media and entertainment industry in India is estimated to be worth $32 billion in 2022 and expected to reach $53.99 billion by 2026. Increasing smartphone and internet access have helped the growth of the industry. PVR Cinemas is a major player in the entertainment industry and was founded in 1997; it merged with INOX Leisure in 2022 to become the second largest cinema chain in India. The financial analysis of PVR shows a large reduction in revenue and profits from FY20 to FY21 due to COVID restrictions, though assets and reserves have increased over time.

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    The media and entertainment industry in India is estimated to be worth $32 billion in 2022 and expected to reach $53.99 billion by 2026. Increasing smartphone and internet access have helped the growth of the industry. PVR Cinemas is a major player in the entertainment industry and was founded in 1997; it merged with INOX Leisure in 2022 to become the second largest cinema chain in India. The financial analysis of PVR shows a large reduction in revenue and profits from FY20 to FY21 due to COVID restrictions, though assets and reserves have increased over time.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    14 views11 pages

    Media and Entertainment Industry Brief

    Uploaded by

    rutveek shah
    The media and entertainment industry in India is estimated to be worth $32 billion in 2022 and expected to reach $53.99 billion by 2026. Increasing smartphone and internet access have helped the growth of the industry. PVR Cinemas is a major player in the entertainment industry and was founded in 1997; it merged with INOX Leisure in 2022 to become the second largest cinema chain in India. The financial analysis of PVR shows a large reduction in revenue and profits from FY20 to FY21 due to COVID restrictions, though assets and reserves have increased over time.

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    of 11

    MEDIA

    &
    ENTERTAINMENT
    INDUSTRY
    INDUSTRY ANALYSIS
    MEDIA AND ENTERTAINMENT
    The media and entertainment (M&E) sector in India is a budding RECENT DEVELOPMENTS
    industry estimated to be worth $32 billion in 2022. By 2026, it is DisneyStar acquired television broadcasting rights of
    anticipated that India's media and entertainment sector will be the Indian Premier League (IPL) from 2023-2027 at ₹
    worth Rs. 4,30,401 crores (US$ 53.99 billion). 48,3950.50 crore.
    Increasing availability of smartphones and internet access have Krafton induced US$19.5 million in Indian audio content
    aided the industry to make huge strides. platform- Kuku FM.
    The sector is renowned for its extraordinarily high volume and GOVERNMENT INITIATIVES

    growing Average Revenue Per User (ARPU). GOI has taken various initiatives such as digitizing
    Key growth drivers include rising demand for content among cable distribution sector, increasing FDI limit from 74%
    users and affordable subscription packages. to 100% in cable and direct-to-home (DTH) satellite
    Demand for regional content consumption has increased, share platforms

    of TV and OTT consumption is expected to reach by 60% and 50% Film Facilitation Office (FFO) set up by Ministry of
    Information and Broadcasting, GOI for single stop
    respectively.
    window for clearance and facilitation point for
    producers and companies to help them gain filming
    permissions.

    01
    SCREENS IN INDIA

    COMPANY ANALYSIS FOOD AND BEVERAGES

    PVR Cinemas, a leading player in the entertainment industry, was started as a


    joint venture agreement between Priya Exhibitors Private Limited and Village
    Roadshow Limited in 1995 with a 60:40 ratio and PVR Ltd ( formerly known as Priya
    Village Roadshow Ltd. ) a multiplex chain of cinema was founded by Ajay Bijli (
    current chairman and managing director) in 1997, at Saket, Delhi.
    COMPANY STATISTICS
    TECHNOLOGY UPGRADES PVR AND INOX MERGER
    Competitive Advantage over other multiplex operators and
    better bargaining power.
    Boost in cashflow.
    Consolidated entity will have 1546 screens, implying market
    share of 16-17 % in total screens in India.
    44 % market share in terms of box office revenue.

    CSR ACTIVITIES

    CORPORATE AFFAIRS
    ICICI Ventures invested 40 crores in PVR
    2003 when Village Roadshow decided to pull
    out of the partnership.

    PVR became largest cinema


    chain in India 2012
    PVR Cinemas crossed 800 screens
    2019 milestone in India.

    PVR and INOX Leisure merger,


    now the second largest 2022
    cinema chain in India.
    PEER COMPARISON
    FINANCIAL ANALYSIS: BALANCESHEET

    243% increase in Non Current liability from


    FY19 to FY20
    1542% increase in the "Other Long Term
    Liabilities" section
    Stability in Current Liabilities, Reserves and
    Long term Borrowings

    From FY19 to FY20, Total Fixed Assets


    increased by 161%, causing the Non-
    Current Assets to increase by 90%
    Cash and Cash equivalents increased
    by 844% from 19-20 and 127% from
    20-21
    FINANCIAL ANALYSIS: INCOME STATEMENT

    From FY20 to FY21, the Total revenue reduced by 78.29%, due to Covid restrictions, and the
    expenses reduced by 49.81%. This mismatch along with some unanticipated problems
    caused the net profit to reduce from 2069cr to (74732)cr, resulting in a 3617% reduction of
    the same.
    The increase in Expenses is mainly attributed to Finance cost and Depreciation and
    amortization expenses, both seeing 276% and 184% increase respectively, from '20 to '21.

    All images are made from data taken from the annual reports of the company
    FINANCIAL ANALYSIS

    All images are made from data taken from the annual reports of the company
    KEY FACTS AND INVESTMENT THESIS
    Risks related to the normal workings of Key Facts & Figures
    Shareholding Pattern
    the company identified by the
    ROCE = -3.09%
    management ROE= -35.62%
    Political and Economic risk Beta = 0.45
    Reputation risk Cost of Equity = 12.51%
    Business model change risk Cost of Debt = 6.08%
    Litigation risk WACC = 6.218%
    Property risk
    Non-compliance risk
    Interest rate risk

    Company vs Indices
    EBIT Margin Performance Other KPIs YoY change
    FINANCIAL ANALYSIS
    FORECASTS AND DCF RESULTS

    All images are made from data taken from the annual reports of the company
    INVESTMENT SUMMARY
    Key Statistics

    EBIT
    -13.71%
    Margin

    EV/Sales 9.5

    EV/EBITDA 29.28

    ROE -9.6%

    Current Market Price= 1713 Upside potential (%) = 35.47%

    Calculated Intrinsic Value = 2290

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