Palace makes a loss as movie sales fall
Cinema operator Palace Amusement Company has made a loss of $12.2 million for the year ended June 30, 2014, a near 188 per cent fall-off from the previous year, amid falling sales and rising administrative expenses.
Palace made net profit of $13.95 million in 2013. Earnings per share was negative $8.41 for the 2014 financial year, compared to a positive EPS of $9.83 for 2013.
Administrative expenses spiked by seven per cent, while sales shrank by three per cent from $862 million to $834 million. The company saw a fall in revenue from box office receipts at all four of its cinema locations.
Palace did make profit in the fourth quarter, however, with net earnings of $3.45 million, but that compares to $22.254 million of profit in the 2013 period.
Total box office receipts totalled $513 million for 2014 compared to $536 million in 2013.
The Carib 5 cinema, based in Cross Roads, Kingston, saw revenue tumble from $279 million to $266 million; sales at Palace Cineplex at the Sovereign Centre mall in Liguanea, Kingston, fell from $97 million to $92 million. Palace Multiplex in Montego Bay retained most of its revenue, but fell marginally from $128 million to $127 million. The Odeon Cineplex in Mandeville dropped from $33 million to $29 million.
Other sources of revenue also declined. Total confectionery sales fell from $211 million to $201 million, film rental fell from $352 million to $343 million, screen advertising slipped from $70 million to $69 million and other activities fell from $5.3 million to $2.9 million.
Palace has previously disclosed that it will be closing down the Odeon cinema in Mandeville this month.
The company was not reached for comment for this story, but Marketing Manager Melanie Graham is previously reported to have said the Odeon has not been financially viable since inception.
The Odeon Cineplex opened in May 2003. It has two screens and seating for about 400.