Palace Amusement Company Limited is pressing ahead with efforts to stabilise operations and rebuild revenues, even as it awaits the reopening of its Multiplex Montego Bay cinema, which has remained closed since Hurricane Melissa struck last October.

The Montego Bay location has been shuttered after suffering extensive mould damage caused by the hurricane, with remedial work now contingent on the outcome of ongoing insurance claims.

Speaking with the Jamaica Observer following the company’s annual general meeting on Tuesday, Deputy Managing Director Steven Cooke said the damage is significant, indicating that it will require major internal works before reopening can be considered.

“There is mould throughout the facility, and that has to be addressed properly,” Cooke said. “All the internal panels and sound-fold materials have to come down and be replaced and so we are working with the insurers to determine what is covered, but it’s a process.”

Cooke, who also serves as concessions manager and head of screen advertising, said that while the reopening timeline remains uncertain, the company is hopeful the cinema can be reopened before year-end.

As one of four cinemas operated by Palace, Palace Multiplex has historically contributed a sizeable portion of group revenues, trailing Carib 5 and Sunshine Palace in Portmore. Up to the end of the first quarter on September 30, 2025 revenue from the location totalled $65.3 million.

“Our patronage since the start of the new financial year has been trending lower than the comparative prior period and Hurricane Melissa was a substantial contributor to that lag,” financial controller Carol Lee told shareholders at the meeting. “The entertainment industry was effectively halted for the rest of the calendar year as Jamaicans turned their attention to relief efforts and family support in the western region. The inactivity of our Montego Bay cinema also contributed to the decline.”

For the three-month period, group revenues amounted to $356.5 million, with a loss of $27 million. This followed full-year revenue of $1.3 billion, a six per cent decline year-on-year, alongside a net loss of $146.9 million.

The company has faced sustained disruption in recent years, first from the COVID-19 pandemic and more recently from the prolonged Hollywood writers’ and actors’ strike, which significantly reduced the flow of new film content. These challenges were compounded by multiple weather events locally which equally weighed on attendance levels and revenue performance.

Despite this, management expressed cautious optimism about the upcoming film slate, citing major franchises such as Spider-Man, Avengers, Minions, Moana, Super Mario Brothers, Supergirl, The Hunger Games, Mortal Kombat 2, Michael—the Michael Jackson biopic—and The Devil Wears Prada as potential revenue drivers heading into late 2026.

Alongside expectations of a stronger release schedule, Palace is also exploring a range of low-cost diversification initiatives aimed at broadening its appeal beyond traditional movie-going, with a focus on increasing per capita spending and better utilising existing assets.

In the short term, Cooke said initiatives will centre on value-added services requiring minimal capital outlay. One concept under development is an enhanced box-seat experience that would allow patrons to order selected concession items directly from their seats, with staff delivering orders to them.

For food items requiring preparation, pager-style systems are similarly being considered to reduce concession bottlenecks and waiting times.

“We have to be very strategic,” Cooke said. “We can’t just throw money at ideas. We have to separate what sounds good from what is actually a solid, sustainable concept.”

Highlighting more of its ambitious plans, including gaming zones, children’s play areas and eSports screening, Cooke said these remain in the exploratory phase. He noted that while global cinema chains are experimenting with similar offerings, Palace will only proceed after careful analysis and pilot testing.

The company is also considering interactive play spaces targeted at younger audiences, particularly children and preteens, identified as key growth segments. Concepts under review range from small gaming rooms to immersive play environments designed to engage children before or after films.

These efforts align with findings from a recent study conducted by the National Research Group, which identified children and preteens — especially those from Generation Alpha — as having a stronger preference for the big-screen experience when compared with older patrons. As a response to these findings, Palace has been aligning its family-focused programming to support this trend.

Additionally, the operator said it plans to continue leveraging alternative programming such as World Cup screenings, live sports, anime content and special events.

Cooke said that previous football-themed activations and large-screen FIFA matches have in the past generated strong engagement, underscoring the potential of non-traditional screen usage. “We did showings of the World Cup semis and finals last time and it did extremely well, as we also did pre-show activities such as scrimmage games on the outside.”

“We intend to capitalise on any emerging opportunity to enhance the cinematic experience of our patrons, promote the value of theatrical releases and strengthen the earning capacity of the industry,” the directors said in a recent report to shareholders.

Lee echoing similar sentiments said that while operating conditions remain challenging, management’s priority is careful stewardship and continued debt management.

“The focus is on stabilising attendance and utilisation, preserving liquidity, maintaining tight cost controls, improving margins through renegotiated commercial terms, and exploring incremental, low-risk revenue opportunities — while avoiding speculative or capital-intensive commitments,” she stated.

LEE… our patronage since the start of the new financial year has been trending lower than the comparative prior period and Hurricane Melissa was a substantial contributor to that lag. The inactivity of our Montego Bay cinema also contributed to the decline

Deputy Managing Director Steven Cooke