$192M insurance payout narrows Palace Amusement losses

Palace Amusement Company Ltd swung to a quarterly profit after receiving a $192-million insurance payout tied to hurricane damage at its Montego Bay cinema, though revenue fell sharply as the chain operates with one fewer location.

“The disaster (Melissa) wreaked havoc across the western regions of Jamaica, and our cinema - Palace Multiplex, in Montego Bay, St James was not spared its wrath,” stated Palace in its financial notes. “After working with our insurers to assess the damage post- Melissa and establishing a claim for contents and tenant's improvement, careful analyses were done to plot a way forward.” 

The company reported a profit of roughly $109 million for the three months ended March 31, compared with a net loss of $101 million in the corresponding quarter a year earlier. Revenue fell one-third to $163 million, reflecting the permanent closure of its Palace Multiplex in Montego Bay following Hurricane Melissa in October 2025.

For the nine months ended March 2026, net loss narrowed to $6.2 million from $164.2 million in the prior-year period. Revenue over that period fell 24 per cent to $715.7 million from $944.6 million. The company held $80 million in cash at March 31, down nearly half from a year earlier. Its accumulated deficit totalled $280.2 million, compared with $307 million a year earlier.

The Montego Bay closure was permanent, as disclosed in March by the company. "It was deemed not financially viable to rebuild the cinema at this time," directors Douglas Graham and Melanie Graham wrote in the financial notes.

Palace served audiences at that Montego Bay location “since 2001”. The directors left open the possibility of a future return to the western Jamaica market, saying the company hoped "future endeavours can be structured and new alliances made to reap the rewards of the years of investment in that geographical space".

Palace is now pursuing revenue diversification to offset the lost location. The company entered a partnership with Trend Media and Caribbean Premier Sports Limited, operators of RUSH Sports and RUSH Prime TV, to screen live sporting events and premium programming at its remaining theatres, beginning in May. The company is also targeting higher per-patron spending and positioning its venues for the broader entertainment market.

Current releases include the Michael Jackson biopic Michael, Mortal Kombat 2, and The Mandalorian and Grogu. The company cited a National Research Group study finding that Generation Alpha — persons born from 2013 to 2025 — shows a stronger preference for big-screen experiences than older demographics.

luke.douglas@gleanerjm.com