Big Tree Entertainment, the TV18* subsidiary which owns ticketing site Bookmyshow.com has launched a Prebook Application for Facebook, and revamped Prebook on Bookmyshow.com. The service, which allows customers to book movie tickets in cinemas in 86 cities in India two weeks before plans open in cinemas. Users select three cinemas in their region, three preferred dates, a convenient time and price range. This must help cinemas get an idea of the demand for a particular film. The Ticket Buddy application on facebook allows booking of up-to 10 seats, and invite friends to watch the film. Regular ticketing isn’t available on the facebook application yet. According to the release, Bookmyshow claims to have a 90% market share in the online entertainment ticketing space, with sales of over 650,000 tickets, and customer spends of over Rs.100 million, on an average every month.
Financial Performance In FY10
During the financial year 2009-10, BookMyShow partnered with three teams in the Indian Premier League – the Mumbai Indians, Delhi Daredevlis and Kings XI Punjab. Web18 claims that helped the company register a 200% growth in ticket sales over Q1-10. Ticket sales and growth aside, how has BookMyShow been performing as a business? TV18’s Annual Report for the financial year 2009-10 provides some information:
So while BIG Tree did continue to lose money, FY10 was a year when it showed much improvement: 17.5% growth in revenues to Rs. 121.59 million, and a 6.7% decline in revenues. All in all, Big Tree Entertainment has accumulated losses of Rs. 66,974,848.
On March 1st 2007, the web group of TV18 had entered into an agreement to acquire 60% post issue equity share capital in Big Tree. This was done by subscription of 8,548 partly paid up equity shares issued by Big Tree, and purchase of 2,581 fully paid up equity shares from the promoters for Rs. 145 million. The agreement also provided for a further payment of Rs. 50 million to be paid to Big Tree for the partly paid up shares if Big Tree’s current account bank balance fell below Rs. 10 million. Of this Rs. 36.5 million (USD 0.81 million) has been paid until 31 March, 2010.
Disclosure: BookMyShow is a part of the Network18 group of companies, of which Web18 is a part. Web18, until recently, was an advertiser with MediaNama.