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Palace Amusement Company (1921) Limited spun to a loss at year ending June as revenue fell and expenses climbed.
The cinema operator bled $146.95 million for the financial year, marking a reversal from the $60.32 million profit posted in FY2024. The downturn comes amid persistent challenges in the entertainment sector, including reduced consumer spending.
Revenue fell by 5.5 per cent from $1.4 billion to $1.32 billion, due to lower box office receipts and concession sales, despite the release of several blockbuster titles, but concurrent with changing consumer preferences and rivalry from streaming services.
Operating expenses rose to $1.47 billion, reflecting higher utility bills, staff remuneration, and the cost of maintenance of ageing infrastructure across Palace’s network, which incorporates four cinemas – Palace Cineplex and Carib 5 in Kingston, Palace Multiplex in Montego Bay, and Sunshine Palace in Portmore. The company also faced increased costs related to digital projection upgrades and security enhancements.
Looking ahead, Palace Amusement has signalled plans to diversify its offerings, including hosting live events and expanding its digital ticketing platform.
English (US) ·