Palace Amusement has advised the Jamaica Stock Exchange (JSE) that it has decided to close all its cinemas as a result of the surge in cases of COVID-19 cases across the island.

The announcement, posted on the JSE’s website on Wednesday (March 17), follows Palace’s previous indication on March 10 that it would be closing all its cinemas, specifically CARIB 5, New Kingston Drive-in and Sunshine Palace, which had been the only ones remaining open at the time.

“We however wish to point out that we have permission to operate the drive-in after 6:00 p.m. but with the longer days the start time of the movies had to be pushed back and with the 8:00 p.m. curfew we cannot operate,” Palace Amusement reported.

In its notice, Palace, Jamaica’s lone cinema operator, said it took the decision to close its remaining cinemas as good corporate citizens and given the latest Government restrictions placed on public gatherings.

As previously advised, Palace Cineplex and Palace Multiplex remain closed. Palace Amusement suffered heavy losses of $99.61 million during its 2020 financial year, which ended on June 30, 2020.

Losses in 2020 wiped out gains in 2019

The losses wiped out the gains made in 2019 when the company made a net profit of $70.36 million. In its 2020 audited financial statements, Palace Amusement incurred losses of $50.54 million in the last quarter of 2020, relative to a net profit of $31.17 million recorded for the same quarter in 2019.

The losses during the last quarter can be explained by the total shutdown of its cinemas across Jamaica in compliance with the government’s COVID-19 safety protocols, which banned mass gathering at entertainment spots, such as cinemas. The last quarter, April to June, is regarded as the height of the COVID-19 pandemic in Jamaica, when most of the island was under restrictions.

Total comprehensive losses for the year amounted to $102.89 million compared to an income of $67.49 million for the corresponding period in 2019. Consequently, net loss attributable to shareholders for the year amounted to $99.84 million, versus an attributable profit of $82.43 million documented for 2019.

Revenue for the year was down 17 per cent to $919.84 million compared with the $1.11 billion recorded for the corresponding period in 2019. The total revenue for the last quarter decreased by a whopping 94 per cent to $20.67 million relative to the $338 million recorded for the same period in 2019