JAMAICAN cinema operator Palace Amusement Company Ltd on Wednesday reported a wider loss for the six months ended December 2024, despite recording its highest attendance levels in the final month of the year.

The company’s net loss for the period widened to $62.9 million, which Palace Amusement attributed to a “slate of less than ideal products” released during the period.

However, the company’s directors expressed optimism about a potential turnaround, citing the steady return of bigger film releases to its screens.

December attendance was a bright spot, with 67,000 patrons attending Palace Amusement’s cinemas during the busy Christmas season. This represented a recovery of around 86 per cent of pre-pandemic attendance levels, the company said.

Despite the challenges, Palace Amusement reported marginally improved revenues for the period.

“As a result, our revenues improved and outpaced the year-to-date $690 million of December 2023, to total $693 million in December 2024. We are currently trending in the right direction and as we go further into the financial year, it is expected that those performance measures will continue to improve,” the directors said in notes accompanying the company’s recently released interim report to shareholders.

Palace Amusement’s second-quarter revenue — the October to December period — jumped 36 per cent to $347.5 million, compared with the same period in 2023. However, the cinema operator’s losses continued to mount, with a net loss of $26.3 million for the quarter.

This compared with a profit of $84.1 million in the corresponding period of 2023. The latest quarterly loss followed a first-quarter loss of $36.5 million ended September 2024.

The global film and theatre industry, still recovering from the COVID-19 pandemic, has faced a new set of challenges over the past 18 months, including Hollywood strikes by writers and screen actors. The strikes, which slowed the release of blockbuster films, have contributed to a drag on cinema operators’ earnings, including Palace Amusement’s.

A recent influx of higher-quality films, including Venom: The Last Dance, Gladiator 2: Red One, and
Mufasa: The Lion King, helped revitalise Jamaica’s movie-going scene, Palace Amusement directors said. These films, released in the latter part of 2024, accounted for approximately 70 per cent of patronage during the review period, also helping to reverse the decline seen in the first quarter.

The return of big-budget films is expected to gain momentum this year, with upcoming releases such as
Flight Risk, Captain America, and Karate Kid poised to drive positive results, Palace Amusement said.

Additionally, the company highlighted the successful launch of its 4DX technology, an amusement park-themed cinematic experience, in auditorium 4 at the Carib 5 theatre. Palace expects this innovative technology to continue enhancing the movie-going experience, offering a new dimension of entertainment for patrons.

“The thrill of viewing nine releases in the multi-sensory format within the period under review has left our audiences begging for more. The occupancy level is trending well, and we look forward to being able to positively respond to their demands in the months ahead, as the product pipeline looks full of strong and marketable pictures,” the directors stated.

Palace Amusement’s directors also welcomed the growing collaboration between streaming networks and theatres, citing the successful release of films like
Moana 2 as a promising development.

As the company seeks to stem losses, it is prioritising efficiency improvements and debt management initiatives. Palace Amusement is taking proactive steps to optimise resource allocation and navigate the uncertainties of the global economy.

“Near the end of the second quarter, alternate credit arrangements were concluded with a new institution. The structure of the facility affords a longer repayment term at fair market rates that will, in due course, substantially reduce our monthly debt service payments and provide additional working capital to better manage our payables,” the directors indicated in the report.