- For FY2025, Palace Amusement Limited (PAL) saw a net loss of J$197.6Mn, versus a profit of J$60.4Mn in FY2024 as lower revenues, the absence of one-off gains recorded in 2024, and weighed on its bottom line
- PAL generated J$1.32Bn in revenues, a 5.5% decline compared with J$1.40Bn in FY2024, with only Palace Cineplex producing year-over-year gains in its revenues amongst the company’s six (6) revenue-generating lines. The shortfall was mainly due to reduced film supply from the Hollywood strikes, though attendance was partially supported by 23 film releases and alternative content (e.g. Gatffest Festival and UEFA Cup Finals). The 4DX technology rollout also bolstered revenues, contributing J$105.0Mn and 35,000 patrons in its first year.
- Direct expenses were largely flat (0.8%) at J$1.23Bn, reflecting high film rental and staffing costs.
- Administrative expenses climbed 18.6% to J$252.6Mn (FY2024: J$212.9Mn). Staff costs rose to J$399.1Mn, up +8.0%, while legal and professional fees surged to J$36.1Mn from J$5.6Mn due to refinancing activity. Management has flagged staff costs as a major “big-ticket” item requiring careful balancing. These costs, led by staff, utilities, and new rental charges, have eaten into the operating margins, pushing PAL into an operating loss compared with the profit achieved in 2024.
- Finance expenses declined to J$42.9Mn, down 22.4%. In the third quarter as refinancing of its debt resulted in a lower interest rate and a reduction in monthly debt service. It also gave the company access to a revolving facility to support operations strategies. Most importantly, the lower payments freed up working capital to better manage payables.”
- As a result, the Company reported a net loss of J$153.9Mn, compared to a profit of J$100.3Mn in FY2024. The operating margin slipped to -11.6% from 7.2%, driven by rising overheads
- PAL’s stock price has declined by 16.8% year-to-date, closing at $1.04 as at Wednesday.
(Sources: Palace Amusement Limited & NCBCM Research)