The Omicron led third wave of COVID-19 pandemic is expected to impact new film releases and thus push the revenue recovery of multiplexes farther by three to five months, said Crisil.<\/p>\n
\u201cThe reimposition of localised lockdowns and temporary closure of multiplexes in key States to contain the third wave of Covid-19 infections are expected to cut footfalls and compel producers of films to defer new releases,\u201d the credit rating agency said in a report.<\/p>\n
That would push back full revenue recovery of multiplexes to the second half of next fiscal, versus the first quarter we expected earlier, it added.<\/p>\n
\u201cBut once restrictions are lifted, the pace of recovery is expected to be sharp \u2014 as was witnessed after the second wave,\u201d it said.<\/p>\n
Nitesh Jain, director, Crsil Ratings, said, \u201cThe temporary closure of operations in New Delhi\/National Capital Region, Bihar, Haryana and restrictions in other key States such as Maharashtra will push back new film releases.\u201d<\/p>\n
\u201cA few big-ticket films such as \u2018RRR\u2019 and \u2018Jersey\u2019 have already been postponed indefinitely,\u201d he said.<\/p>\n
\u201cOur base case assumes the third wave to peak in February and bottom out by the end of March,\u201d he added.<\/p>\n
\u201cWe expect theatre release of big-ticket content to resume in the first quarter of fiscal 2023, which should sharply improve occupancy. A full recovery, however, is expected only in the second half of next fiscal,\u201d he added.<\/p>\n