>FAME INDIA (ANGEL BROKING)

PERFORMANCE HIGHLIGHTS

■ Multiplex-Producer strike impacts Top-line, dips 33%: For 1QFY2010, Fame reported a decline in Top-line of 33.2% yoy to Rs15.8cr (Rs23.6cr) on a Standalone basis, largely impacted by the 63-day strike (covering almost the entire quarter) between Multiplex-Producers due to which most movie releases were stalled. Second season of the IPL and Elections also impacted footfalls during the quarter, which fell 36% yoy to 1.05mn (1.6mn) leading to a drop in occupancy levels by almost 1,200bp to 13% (25%). However, steady Average Ticket Prices (ATPs) and 11% improvement in F&B Spend helped arrest further fall in Top-line.

■ Margins collapse, register a huge Operating Loss: On the Operating front, Fame’s Margins completely collapsed resulting in a substantial Operating Loss of Rs5.2cr (Loss of Rs2.7cr). A weak Revenue base magnified the impact on Margins (as a % of Sales) leading to the sharp contraction. While direct costs (Distributor’s share and F&B costs) remained flat (as a % of Sales), higher Staff costs (up 643bp yoy, flat in absolute terms) and 46% yoy jump in Rentals (up 2,466bp yoy) to Rs7.2cr (Rs4.9cr) impacted Margins severely.

■ Bottom-line dips deep into the Red: The company’s Bottom-line dipped deep into the Red registering a Loss of Rs9.5cr (Loss of Rs3.7cr loss) on a reported basis. Earnings were depressed due to the sharp contraction in Margin, higher Depreciation charges (up 79% yoy) and sharp jump in Interest costs (up 124% yoy).

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