Cinemax looks to add 300 screens across India

MUMBAI: At a time when occupancy levels have been dipping at multiplexes due to no new Hindi film release for the last six weeks, Cinemax is looking to add at least 300 more screens across India in the near future. At present Cinemax has 25 properties with 74 screens across the country.

On the other hand, the company has posted a net profit of Rs 110 million (Rs 11 crores) at the end of FY08-09, which was down 19.52 per cent, as compared to Rs 137.3 million (Rs 13.73 crores) in the previous fiscal.

For the quarter ended 31 March 2009, the company posted a net profit of Rs 9.8 million, which is almost 55 per cent down from Rs 22.1 million (Rs 2.21 crores) in the previous year’s corresponding quarter.

Revenue was up 35 per cent to Rs 334.2 million (Rs 33.42 crores) during the quarter as compared to Rs 247.70 millon (Rs 24.77 crores) in the previous year.

The company earned revenues of Rs 341.2 million (Rs 34.12 crores) from theatrical exhibition and entertainment in the fourth quarter of FY2009, as compared to Rs 229.8 million (Rs 22.98 crores) a year ago. The company posted an operating loss of Rs 37.1 million (Rs 3.71 crores) from this segment in the quarter. It also posted a loss of Rs 15.2 million (Rs 1.52 crores) in the distribution and production segment during the quarter.

Cinemax CFO Jeetendra Mehta said, "The company is pleased by the results and sees tremendous growth opportunities in the coming fiscal as the industry movements are in our favour. In spite of depression and tough times, we have done well and are able to offer dividends to our shareholders. As the ongoing strike will end in the coming days, we will have better content and better profitability."

The company has utilized the entire proceeds of the Initial Public Offering for the purposes stated in the offer document, prior to 30 September 2008.

The board of directors has recommended a final dividend of Rs 1.20 per share subject to the approval of shareholders in the ensuing annual general meeting.