Strangled by direct expenses, which rose by 105% 

Durrant Pate/Contributor

Jamaica’s sole cinema company, Palace Amusement Company, ended its 2022 financial year in June still in the red, having endured a challenging period over the past year.

Strangled by a whopping 105 per cent surge in direct expenses, Palace Amusement incurred a net loss of J$257.10 million for the year, down from the net loss of J$383.08 million recorded in 2021. For the June final quarter, net profit amounted to J$11.64 million, which represents a massive turnaround from the net loss of J$128.28 million in 2021.

Total comprehensive loss for the year amounted to J$250.51 million compared to an income of J$240.89 million for the corresponding period in 2021. For the June quarter, comprehensive income amounted to J$11.64 million, up from J$493.25 million in 2021.

Consequently, net loss attributable to shareholders for the year amounted to J$257.09 million, versus an attributable loss of J$382.94 million documented for 2021.

Strong recovery in revenues

Total revenues for the year totalled J$649.04 million, which is a massive 514 per cent increase when compared with the J$105.77 million recorded for 2021. The total revenue recovery for the June last quarter was even more phenomenal surging by a whopping 2,456 per cent to total J$275.40 million relative to the J$10.77 million recorded for 2021.

Direct expenses for the year amounted to J$699.28 million, a 105 per cent increase when compared with J$341.79 million recorded for the same period in 2021. As such, gross loss for the period amounted to J$50.24 million, relative to a loss of J$236.02 million booked in 2021.

For the quarter, Palace Amusement recorded a gross profit of J$52.51 million, relative to gross loss of J$50.51 million for the corresponding quarter of 2021. Notably, the company booked operating income of J$9.94 million, versus J$6.68 million recorded for the prior year.

Big jump in admin expenses

Administrative expenses increased by 51 per cent to total J$170.96 million when compared with the J$113.10 million recorded for 2021. Consequently, operating loss for the year amounted to J$211.78 million, relative to the loss of J$342.43 million in 2021. For the June quarter, operating profit totalled J$25.57 million relative to an operating loss of J$98.73 million booked in 2021.

For the year, finance cost increased significantly to J$45.32 million relative to the J$15.90 million recorded in 2021. This  resulting in loss before tax of J$257.10 million, versus a loss of J$358.32 million booked in 2021.

As at June 30, 2022, Palace Amusement reported total assets of J$1.78 billion, a 14 per cent increase when compared to J$1.56 billion in the prior year. This increase in assets was primary due to a 1,145 per cent increase in ‘Investments’ which closed at J$241.38 million (2021: J$19.38 million).

Shareholders’ Equity as at June 30, 2022 was J$384.85 million compared to J$636 million for the prior year. This resulted in a book value per share of J$267.81 compared to J$442.58 booked a year ago.