Net loss for the nine months ended March 2021 amounted to $254.73m

Movie company Palace Amusement continues to be hit by COVID-19 with all of its cinemas being closed, resulting in further erosion in 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. For the quarter, net loss attributable to shareholders amounted to $78.25 million relative to a net loss attributable to shareholders of $49.32 million for the third quarter of 2020.

Total comprehensive loss for the nine months ended March 31, 2021 amounted to $252.36 million compared to a total comprehensive loss of $53.28 million for the corresponding period in 2020.

Revenue has nose-dived by 89% during the review period

During the three quarters, Palace Amusement’s total revenues was $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.

Gross loss for the March quarter amounted to $58.85 million compared to a gross loss of $6.67 million for the corresponding quarter of 2020. On the positive side, there was a contraction in administrative expenses for the nine months, which went down 47 per cent to total $74.40 million when compared to $139.98 million recorded for the comparable period in the prior year.

Other operating income for the nine months increased 154 per cent to total $15.90 million relative to the $6.25 million booked in same period for 2020.Consequently, operating loss for the nine months period amounted to $243.69 million, relative to an operating loss of $45.97 million in 2020.

For the quarter, operating loss totalled $74.27 million relative to an operating loss of $48 million booked in 2020.

Rising financing costs

Finance costs rose 248 per cent to $10.80 million relative to the $3.10 million recorded in 2020. There was a taxation charge for the nine months ended March 31, 2021 of $234,000, relative to no taxation charge for the comparable period of the prior year.

Loss per share (LPS) for the quarter totalled $54.45 relative to a loss per share (LPS) of $34.32 in 2020. For the nine months ended March 31, 2021, the Company recorded a LPS of $177.18 relative to a LPS of $34.32 for the comparable period in 2020.

As at March 31, 2021, Palace Amusement reported total assets of $986.80 million, a 38 per cent increase when compared to $715.51 million in the prior year. This increase in assets was primarily due to ‘Rights of use assets’ which stood at $318.75 million (2020: nil).

Shareholders’ Equity as at March 31, 2021 was $131.30 million compared to $445.57 million for the prior year. This resulted in a book value per share of $91.37 compared to $310.06 booked a year ago.