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Palace Amusement reports loss after mothballing two cinemas

Palace Amusement Limited posted revenues of J$919.8 million, for the year ended June 30, 2020, a downturn from $1.11 billion for the comparable 2019 period.

Palace Amusement reported losses of almost J$100 million.

The audited report comes after it announced the closure of two cinemas in the second quarter of 2020.

Up to June, the Palace saw net losses of $99.6 million, compared to net profit of $70.3 million at year end June 30, 2019.

In September, Palace shuttered Palace Cineplex and Palace Multiplex effective, citing impact of the COVID-19 pandemic and the continued restrictions placed on operations in the entertainment industry.

Inside Palace’s Sunshine Cineplex in Portmore, St Catherine. (Photo: Palace Amusement)

For the audited year, direct expenses were $800 million, while administration costs were $174.4 million. This compared $900 million in direct expenses in 2019 and administrative expenses of $186.7 million.

Loss per share was $69.48 per unit compared to earnings of $57.36 EPS for the 2019.

In its first quarter report directors said that despite their efforts to minimise overheads it was best to close the cinemas as there were s costs that are unavoidable whether or not the cinemas are operating.

In September, the company gave notice of its receipt of approval for a drive-through cinema in Kingston.

The company ended the year at June 2020 with cash and cash equivalents of $99.6 million, compared to $146.78 million at June 2019.