PALACE Amusement Company Limited ended its last financial year in the red as high debt and inconsistent box office returns continue to weigh on its bottom line, but the over-a-century-old operator said it remains optimistic as it taps into emerging audience trends and explore other revenue streams.

For the full year ended June 30, 2025 revenue for the company dipped slightly to $1.32 billion, resulting in a net loss of $146.9 million. This represents a reversal from the $60-million profit recorded in 2024 as a weak slate of films and the delayed release of major pictures affected attendance and earnings.

Director and Marketing Manager Melanie Graham, speaking with the Jamaica Observer, said that despite brief periods of improvement following COVID-19 downturns, the company has never been “truly out of the red”.

“We still owe the bank a hell of a lot of money, and coming up to our year-end in June… the pictures have also been spotty, in that the quality of several were not that top tier to draw more people,” she explained.

Graham, however, noted that while box office revenue has slowed, interest in previously underperforming genres, such as horror and anime, have begun to grow steadily. She highlighted films such as Sinners and Demon Slayer as two that have performed well, though not enough to offset the broader decline in attendance.

Given this encouraging trend, Palace plans to screen additional anime titles before the end of 2025, with high hopes for James Cameron’s Avatar: Fire and Ash, which is slated for release later this year and expected to be a major crowd-puller.

The company’s 4DX cinema, which offers an immersive viewing experience, the director said, also continues to outperform traditional screens in attendance, though high operating costs remain a limiting factor.

“We’d love to do more — maybe one in Montego Bay and one in Portmore — but it all boils down to having the finances,” Graham said. “There are a lot of fees that you have to pay to the owners of the 4DX. A whole lot of people get paid out of the revenues we make, and the machines are extremely expensive.”

Citing Palace’s challenges as a reflection of the global film industry, where post-pandemic recovery has largely remained uneven, she said the local industry, unlike US cinema chains that have benefited from government support and access to bank financing, sees her company having had to navigate recovery largely on its own. Still, management remains upbeat.

With innovation, steady adaptation, and a slate of major releases on the horizon, she said the hope is not only for Palace’s curtains to be lifted out of the red but to also bring renewed form to the industry.

As streaming continues to reshape entertainment habits, Graham said Palace is also turning to social media engagement and monthly activations to reconnect with younger audiences. “We figure after more than a hundred years we can’t just give up so easily, so we continue to not only go after stronger pictures for showing but to also promote our rental and advertising services.”

On October 31 the company will, for Halloween, stage a line-up of popular horror films screened during late-night shows. Cinemas across the island will be decorated in keeping with the Halloween theme to enhance the experience.

Graham, expressing hope for the start of a smooth second quarter, said she is also praying for minimal disruptions from Tropical Storm Melissa, which could further dampen attendance.

We pray for good weather,” she said. “Anything less isn’t good for cinema. When it rains people tend to stay home and sleep, but we want them to come out to the movies.”

GRAHAM…we still owe the bank a hell of a lot of money, and coming up to our year-end in June… the pictures have also been spotty in that the quality of several were not that top-tier to draw more people