Despite Strong Revenues Palace Amusement Reports A Loss For FY2022 Due To Higher Costs

• Palace Amusement reported a net loss of $260.68Mn for its financial year ended June 30, 2022, despite seeing revenue growth of 513.6%. This loss was mainly attributed to higher direct and indirect expenses.
• Direct costs increased by 106.6% year-over-year, mainly due to increased business activity in tandem with the reopening of the economy which took place in the second half of the company’s financial year. Specific costs such as Film and Staff costs increased by 446.0% and 70.4%, respectively, resulting in an overall increase in direct costs. Additionally, the 54.3% increase in admin expenses also contributed to higher expenses.
• Going forward, the company should see stronger revenues in FY2023 given that the economy is now fully reopened. The company is expected to see higher revenue in the first half of the current financial year relative to the corresponding period last year which was marred by lockdown measures. Consequently, the company is anticipated to experience better Q1 2022/23 financial performance given its ability to contain cost.
• Palace’s stock price has decreased by 25.15% since the start of the calendar year. The stock closed Thursday's trading session at $800.00. 

(Sources: NCBCM Research and Company Financials)