Blockbusters boost box office

Jordane Delahaye, Business Intern

Movie ticket sales topped half-billion dollars last year, according to the operators of cinema company Palace Amusement, who said business was driven by blockbusters.

Palace recorded a J$83 million, or 19 per cent, increase in box office receipts to J$514 million at yearend June 30.

Big cinema draws during last year included The Avengers and the final instalment of the Harry Potter series. Both movies are ranked third and fourth, respectively, on the worldwide box office list for the highest-grossing movies of all time.

Head of marketing for Palace Amusement, Melanie Graham, said that the release of these blockbusters, as well as 3D ticket sales, lead to the company's record-breaking box office results.

Box office receipts is Palace Amusement's main revenue line and accounted for 46 per cent of the company's total revenue, according to its yearend results.

Total sales rose 16 per cent to J$842 million. Net profit spiked 40 per cent to J$19.6 million.

The rise in ticket sales also drove up the third-most lucrative side of the business - confectioneries and snacks, which turned over J$208 million during the year.

Movie rentals earned J$341 million and was the fastest-growing segment, up 21 per cent.

Graham said the increase in the number of 3D releases played a significant role in the company's sales performance, as 3D tickets are priced up to J$400 more than regular tickets.

Palace Amusement is the local representative of United International Pictures, which is the source of motion picture products from Paramount, Universal, DreamWorks and Disney.

The company also acts as a film distributor servicing cinemas in Jamaica and Grand Cayman.

Palace Amusement also reported a decline in revenue earned from screen advertisements, from J$30.3 million to J$27.96 million. Graham said that business segment is restricted by a 10-minute ad limit observed by the company.

business@gleanerjm.com