Jamaica’s cinema business is showing big signs of improvement with the sole cinema operator, Palace Amusement Company, reversing the losses made during the first quarter of last year to post a modest profit for the September 2023 first quarter.
Palace Amusement chalked up a 74 per cent increase in revenue during the September 2023 quarter, totalling J$433.91 million compared to $249.71 million in the corresponding period last year. Total comprehensive income closed on J$23.08 million, reversing the loss of J$56.80 million posted last year.
Net profit totalled J$22.71 million, thereby reversing the net loss of J$53.99 million reported for September 2022. Net profit attributable to stockholders for the quarter under review amounted to J$22.72 million, up from the net loss of J$53.97 million reported for the same period in 2022.
Consequently, earnings per share for the quarter amounted to J$0.03 compared to a loss per share of J$0.06). Notably, Palace Amusement’s stock price closed trading yesterday at a price of $1.28 with a corresponding P/E ratio of 2.99x.
Direct expenses went up 37%
Direct expenses amounted to J$343.05 million (2022: J$250.41 million), representing an increase of 37 per cent year-over-year. Consequently, gross profit increased to J$90.86 million compared to a loss of J$705,000 for the first quarter of September 2022.
Administrative expenses increased by 27 per cent to close at J$53.43 million (2022: J$42.02 million), while other operating income decreased by 25 per cent from J$2.66 million in 2022 to J$2.00 million for September 2023.
As a result, operating profit for the first quarter amounted to J$39.43 million, relative to a loss of J$40.06 million reported in 2022. Finance costs for the quarter under review amounted to J$16.72 million, a 20 per cent increase relative to J$13.92 million reported in 2022.
Palace Amusement’s assets totalled J$1.75 billion (2022: J$1.73 billion). The marginal increase in assets resulted from ‘deferred tax assets’ of J$151.92 million being recorded (2022: nil).
Shareholder’s equity was J$603.58 million (2022: J$326.80 million), representing a book value per share of J$0.70 (2022: J$0.38).