Palace Cineplex, Palace Multiplex to remain closed until further notice

Jamaica’s lone cinema operator, Palace Amusement Company, has announced the reopening of its CARIB 5 and Sunshine Palace, effective today (June 25).

The announcement comes as a result of the relaxing of the Government’s restrictions placed on the entertainment industry and public gatherings. However, Palace Amusement has indicated that its Palace Cineplex and Palace Multiplex will remain closed until further notice.

The restrictions have hit Palace Amusement’s cinema business hard, with the company forced to shut all its cinemas in compliance with government health and safety protocols, resulting in further erosion to its bottom line. Net loss for the nine months ended March 31, 2021 amounted to $254.73 million, compared with a net loss of $49.07 million recorded for the corresponding period in 2020.

For the March quarter, net loss amounted to $78.32 million, compared with a net loss of $49.22 million recorded for the same quarter in 2020. Consequently, net loss attributable to shareholders for the nine-month period amounted to $254.61 million, versus the net loss attributable to shareholders of $49.23 million for the comparable period in 2020.

Revenue has nose-dived

During the three quarters, Palace Amusement’s total revenues amounted to $95 million, representing an 89 per cent decline when compared with the $899.17 million recorded for corresponding period in 2020. Total revenue for the March quarter declined 88 per cent to total $28.38 million relative to the $229.27 million recorded for same period in 2020.

Direct Expenses for the period under review amounted to $280.20 million, a 65 per cent decrease when compared with the $811.41 million recorded for the same period in 2020. As such, gross loss for the period amounted to $185.20 million, relative to a gross profit of $87.77 million booked for 2020 corresponding period.