Revenues declined by 13% to $919.8 million
Movie company Palace Amusement suffered heavy losses of $99.61 million during its 2020 financial year, which ended on June 30.
The losses wiped out the gains made in 2019 when the company made a net profit of $70.36 million. In its just released 2020 audited financial statements, the company 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 GREW TO $102.8 MILLION
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.
Direct expenses for the year amounted to $880.58 million, representing a two per cent decrease when compared with $900.09 million recorded for the same period in 2019. As such, gross profit for the period amounted to $39.26 million (2019: $212.55 million), an 82 per cent decrease when compared to 2019.
For the last quarter, Palace Amusement recorded a gross loss of $48.50 million, relative a gross profit of $76.23 million for the corresponding quarter of 2019. Notably, the company booked an operating income of $6.88 million, versus $6.14 million recorded for the prior year.
ADMIN EXPENSES DECLINED 7%
On the positive side, administrative expenses decreased by $12.25 million or seven per cent to $174.49 million when compared with the $186.74 million recorded for the comparable period in the prior year. Consequently, operating loss for the period amounted to $128.34 million, relative to an operating profit of $78.51 million in the corresponding period in 2019.
For the last quarter, operating loss totalled $84.74 million relative to an operating profit of $37.61 million booked in 2019. For the period, finance cost increased significantly to $5.47 million relative to the $1.70 million recorded in 2019.
This resulted in the profit loss of $133.81 million, versus a profit of $76.81 million booked in 2019. Tax credit for the period in review amounted to $34.20 million relative to tax charges of $6.45 million recorded for the comparable period for the prior year.
As at June 30, 2020, Palace Amusement had total assets of $1.04 billion, a 48 per cent increase when compared to $702.88 million in the prior year. This increase in assets was primary due to ‘Right of use assets’ to total $318.75 million (2019: nil) and ‘Property, Plant & Equipment’ which closed at $533.61 million (2019: $452.42 million).
Shareholders’ equity as at June 30, 2020 was $395.69 million compared to $498.94 million for the prior year. This resulted in a book value per share of $275.35 compared to $347.20 booked a year ago.