In the wake of the pandemic’s adverse impact on the entertainment industry, BookMyShow’s Remarkable Fiscal Year 2023 Performance emerged as a standout player, showcasing resilience and adaptability. The fiscal year 2023 marked a monumental turnaround for the company, with a significant surge in both revenue and profitability.
Financial Resurgence After the Pandemic
BookMyShow faced a challenging period in FY21, witnessing a sharp decline in revenue to Rs 74 crore due to restrictions on multiplexes and offline entertainment. However, the subsequent two fiscal years, FY22 and FY23, witnessed an astonishing 13X growth, catapulting the firm’s revenue from
Unveiling BookMyShow’s Resilience in FY23
In the wake of the pandemic’s adversity, BookMyShow emerged as an unparalleled outlier, orchestrating a comeback that distinguishes it from its late-stage counterparts. The fiscal year 2021 witnessed a downturn, with the firm’s revenue plummeting to Rs 74 crore due to restrictions on multiplexes and offline entertainment shows. However, in a staggering turnaround, BookMyShow experienced a phenomenal 13X growth over the last two fiscal years (FY22 & FY23), culminating in a substantial profit in the fiscal year ending March 2023.
Exponential Growth and Financial Revival
BookMyShow’s revenue from operations witnessed an extraordinary surge of 3.5X, reaching Rs 976 crore in FY23 from Rs 277 crore in FY22, as indicated by its consolidated financial statements from the Registrar of Companies. The substantial growth was primarily fueled by a remarkable 2.85X surge in income from ticket bookings, accounting for 66% of the total operating revenue. This category soared to Rs 648 crore in FY23 from Rs 227 crore in FY22. Notably, during FY23, BookMyShow played a pivotal role as a partner in a majority of live events and concerts, leading to a phenomenal 9.5X increase in income from this segment, amounting to Rs 237 crore.
Diversification and Revenue Streams
The diversified revenue streams of BookMyShow encompassed advertising, marketing, streaming, the sale of food and beverages, and non-operating income, propelling the total revenue to an impressive Rs 1,026 crore in FY23.
Cost Dynamics and Profitability
However, the revenue share, constituting the commissions paid to cinema owners, emerged as the largest cost center, comprising 31.3% of the total expenditure. This cost escalated 2.5X to Rs 295 crore in FY23 from Rs 120 crore in FY22. Simultaneously, the cost of artist fees surged tenfold to Rs 104 crore in FY23, aligning with the expansion of live events.
Various cost components, including employee benefit cost, production cost, payment gateway charges, legal fees, information technology cost, and other overheads, collectively contributed to a 2.38X increase in total expenditure, reaching Rs 941 crore in FY23 from Rs 395 crore in FY22.
Turning the Tide: First-Ever Profit
The effective management of costs, coupled with a three-fold scale increase, enabled BookMyShow to achieve its first-ever profit during FY23. The company posted a remarkable Rs 85 crore in profit, a significant turnaround from the Rs 92 crore loss in FY22. The Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at 12% and 13%, respectively. At a unit level, the expenditure to earn a rupee was reduced to Rs 0.96 in FY23.
Financial Metrics Comparison (FY22-FY23)
|Expense/₹ of Op Revenue
BookMyShow’s Adaptable Strategy and Industry Impact
Undoubtedly, BookMyShow exemplifies adaptability during unforeseen circumstances, steering its way through challenges to maintain its operational momentum. What sets the company apart is not just its resilience but its commendable role in nurturing the live events ecosystem. A key aspect is its active involvement in audience generation for live events, positioning the app as a go-to destination for exploring options, rather than merely a booking platform after decisions are made. This transition marks its current value and strength.
Future Prospects and Competitive Edge
After years of relentless effort and model iterations, BookMyShow is reaping the rewards. Despite the surge in competition post-pandemic, the company maintains a class of its own. In a burgeoning consumption-driven economy focused on services, BookMyShow stands as a beacon, poised to deliver exceptional returns to all stakeholders, including customers. As it evolves into a platform where organizers and venues heed feedback from BookMyShow regarding service quality, the company solidifies its position as an industry leader.