Palace Amusement Company (1921) Limited reported a widened net loss of $115.0 million for the six months ended December 2025, as Hurricane Melissa disrupted operations and cinema attendance declined sharply during the Christmas quarter.

The cinema operator generated revenue of $553.4 million for the half-year, down from $692.9 million in the corresponding period last year, representing a 20 per cent decline. For the October to December quarter alone, revenue fell to $196.9 million from $347.5 million a year earlier.

Direct expenses amounted to $531.4 million, resulting in gross profit of $22.0 million, compared with $59.6 million in the prior period. After administrative expenses of $109.1 million and finance costs of $28.9 million, the group recorded an operating loss of $86.1 million and a net loss of $115.0 million, versus a $62.9 million loss in 2024.

Management said the passage of Hurricane Melissa in late October significantly affected its Palace Multiplex in Montego Bay, which remains closed as the company assesses damage and works with insurers on claims. Attendance across the cinema circuit fell substantially after the storm, as consumers shifted focus to recovery efforts and discretionary spending slowed.

Although several major film releases were scheduled for the holiday season, delayed festive activity and reduced foot traffic limited their impact. The company also continues to face elevated operating costs, including utilities, staff expenses, and theatre rental.

At December 31, 2025, total assets stood at $1.97 billion, with property, plant, and equipment accounting for $1.46 billion. Cash and cash equivalents declined to $96.2 million from $157.0 million at June 2025.

The group reported net current liabilities of $321.8 million, as current liabilities of $568.0 million exceeded current assets of $246.2 million. Long-term liabilities totalled $509.7 million, while lease liabilities stood at $35.4 million.

Operating cash flow turned negative for the period, with $18.1 million used in operating activities compared with $102.8 million generated in the prior year. The company also repaid $11.8 million in long-term loans and paid $28.9 million in interest during the half-year.

Earnings per stock unit attributable to shareholders was negative $0.13, compared with negative $0.07 in the corresponding period last year.

Despite the challenging environment, management said it remains focused on strengthening treasury management, improving operational efficiency, and enhancing the overall cinema experience as it seeks to stabilise performance and position the business for recovery.