To screen all IPL matches live; expect occupancies to be similar to big movies; deal with UFO Moviez on revenue sharing basis: Fame India
Rishi Negi, COO of Fame India said that the company will be showcasing all IPL matches live and the occupancies are expected to be similar to big movies. The deal with UFO Moviez is on revenue sharing basis. Occupancies could go upto 80-90%, he added.
UFO Moviez has announced strategic alliance with multiplex chains Inox & Fame India for screening the IPL T-20 matches. Under the agreement, UFO Moviez will share box office receipts and marketing costs. First chain to sign up was Cinemax. IPL matches are going to be screened in HD without advertisements during the playtime. UFO Moviez is handling the techno-commercial aspects of screening IPL matches in theatres. UFO Moviez India has a target of showcasing the IPL across 1000 cinemas. Occupancies generally fall to as low as 10% during the IPL in theatres.
In September 2009, Temasek exited Fame India in a block deal of 13.5% at Rs 30 amounting to Rs 14.08 crore. Temasek held 9.05% via Aranda Investments and 4.55% via Dunearn Investments. It sold the stake to Gulshan Investments and Shail Investments. Buyers could be for Cinepolis looking to enter India.
Occupancies are at 35-40%, inched up by 5 to 10%. Movies like Paa have seen upto 95% occupancy. Smaller towns are also seeing occupancies of 60-65%. Kurbaan netted Rs 4 crore on the first day of box office openings. Newer movies which are coming up include 3 Idiots which are expected to strong occupancies.
A fresh tussle on sharing revenues from a movie is brewing. Fight is between Vidhu Vinod Chopra, the producer of 3Idiots, and multiplexes. Chopra has sent a mail to multiplexes stating that the producers of the film deserve a higher revenue share. Chopra is asking for 52% venue share in the first week, 47.5% second week, and 40% in third and fourth. Under the June agreement, producers will get 52.5% 45% and 37.5% 30 % if movie earns over Rs 17 crore.
Fame India’s Q2FY10 (YoY) revenues stood up 12% to Rs 37.05 crore vs Rs 32.95 crore, OPM stood at 13.6% vs 19.8% and net loss was of Rs 90 lakhs vs profit of Rs 2.82 crore.
Fame India has 22 properties, 79 screens with 23,000 seats and has presence in 11 cities. Its debt level is of Rs 100 crore and cash levels are of Rs 20 crore. The debt includes pending FCCB of $ 13 million due in FY11 at Rs 100-117 conversion price. The company’s FY09 revenues were Rs 133.5 crore with PAT of Rs 3.43 crore and OPM of 10%.
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