Pyramid Saimira Theatre Limited (PSTL), a Chennai-based theatre chain, has acquired Texas-based theatre chain FunAsia through its subsidiary, Pyramid Saimira Entertainment America. The enterprise value of FunAsia is pegged at $25 million. The acquisition includes FunAsia’s theatre screens, radio station, magazine and banquet halls.
“With this acquisition, which is an all-cash deal, the total number of screens under PSTL has increased to 703 globally. We will scale up the number of screens from 23 to 60 in the US and Canada by the year end so as to cover 80 to 90% of the South Asian population there. We plan to expand to other cities such as Chicago, Virginia, Los Angeles and San Hose”, PSTL managing director P S Saminathan said.
PSTL, apart from South Asia and US, would also ramp up its presence in the UK, another lucrative market for Indian cinema. Also, the company would create a mega digital theatre chain. Asked about the source of funding, he said it has already raised $ 90 million through convertible debentures.
Apart from its core businesses such as theatre chain development and film distribution, PSTL plans to rapidly grow its food and beverages business by setting up 10 food courts in its theatre complexes before March-end. The company is considering tying up with a few food brands for the same.
“Food and beverage is a high margin business compared to box office. Currently, we operate through canteens in theatres but we now plan to set up our own food courts. In India alone, we are targeting Rs 250 crore from food sales in theatres this year”, Mr Saminathan said.
In the first six months, share of food and beverage business came to Rs 72.82 crore and theatre business Rs 188.36 crore. It is now part of PSTL but may be demerged into a separate subsidiary. In the second quarter ending September 30, 2007, PSTL recorded a net profit of Rs 15.11 crore and a net income of Rs 144.18 crore. For the year ended March 31, 2007, it posted a net profit of Rs 13.43 crore on a net income of Rs 164.31 crore.
Source: Economic Times