Palace Amusement closes loss maker Loop Jamaica

The content originally appeared on: Jamaica News Loop News

Cinema operator Palace Amusement officially closed its drive-in location after two years of losses and the expiration of its lease.

“The lease arrangement for the New Kingston drive-in operations ended and the group did not renew the lease agreement,” said Palace in its report.

The company opened the drive-in in October 2020 as part of measures to stem the spread of the pandemic.

Like its other cinemas, that location did not make a profit from operations during the 2022 or 2021 financial year.

It generated $39 million in revenue and recorded losses of $6 million in 2022. Meanwhile, in 2021, the drive-in cinema generated $17 million in revenue and $9.2 million in losses.

The cinemas, however, are rebounding in 2022, with revenue growing six times more than last year.

Revenue totalled $649 million for the financial year ending June 2022 compared to $106 million a year before. The company still made net losses of $260 million, an improvement on the $383 million net loss a year earlier.

The company operates cinemas in Portmore, St Catherine, Montego Bay and two in Kingston. The drive-through cinema facilitated moviegoers to maintain distance from others to meet the COVID-19 protocols. Those measures were, however, largely removed by Government in April.

The company closed the year with reduced capital at $391 million from $643 million in 2021.