Kingston Live Entertainment (KLE) Group suffered a $13 million loss in 2012, with its restaurant Usain Bolt's Tracks & Records operating in the red.
KLE, which operates the Fiction night club along with Tracks & Records in Kingston, reported a 120 per cent increase in revenues to $288.5 million for the year ending December 31, 2012, based on the addition of the restaurant to the group in November 2011.
KLE and Tracks & Records were two separate companies prior to November 2011, when the owners took the decision to simplify the corporate structure and combine the two entities. For comparative purposes, using the combined results of the respective segments of the amalgamated entities, revenues from Fiction was down 11 per cent year on year to $116.6 million, while the restaurant's sales jumped by 41 per cent to $171.8 million, the company reported.
However, profit before taxation for the night club operation more than tripled to $15 million but the restaurant recorded a $11.8 million pre-tax loss, from a $22.7 million loss position at the end of 2011.
Total direct, selling, administration and other operating expenses for the group jumped by 133 per cent to $314.2 million for 2012 compared to the year prior. This included $89.9 million cost of inventory, up from $38.2 million; $74 million in staff costs, up from $33 million; $25.2 million in utilities, up from $8.3 million; $22.9 million in legal and professional fees, up from $12.3 million and $20 million in depreciation costs, up from $4.7 million.
The Business Observer was unable to contact KLE head Gary Matalon for a comment.
KLE Group listed on the Jamaica Stock Exchange Junior Market in October of last year, successfully raising $94.6 million. The company had said the move to list on the Junior Market would help the company meet its goal of becoming a dynamic entertainment group. Part proceeds of the public offering will go towards expanding Tracks & Records, opening a new nightclub in Portmore and working capital for the recently launched Odyssey gaming lounge located between Fiction and Tracks & Records, the company said.
A joint venture project in Oracabessa along with majority partner, Sagicor Life Jamaica, is also in the works.