PALACE Amusement Company returned to profit in the third quarter after an insurance payout, lower expenses, and stronger box office releases helped offset falling revenues and the loss of its Montego Bay multiplex following Hurricane Melissa.

The performance marks a sharp turnaround from a net loss of $101.3 million recorded in the same period last year, when revenues were $251.7 million.

According to management, Palace’s third-quarter gains come amid ongoing challenges, including the lingering impact of the Hollywood writers’ and screen actors’ strike, which tempered the start of the 2025/26 financial year. Operations were also affected by Hurricane Melissa, which permanently closed the Palace Multiplex in Montego Bay, eliminating a significant revenue stream.

“Our team, with one foot in front of the other, steadfastly continued the work required to source and exhibit films that meet the diverse tastes of our patrons while striving to shift and refocus their attention in the January to March period back to the habit of movie-going with normal activity and discretionary spending,” the directors said in notes accompanying the company’s latest financials posted to the Jamaica Stock Exchange, while noting that adventure titles such as Shelter, starring Jason Statham, and Crime 101, featuring Halle Berry and Chris Hemsworth, along with sequels like Scream 7, Avatar: Fire & Ash and Zootopia 2, all helped to deliver strong box office holdovers.

Banking on the continuation of a strong line-up of quality films, the directors expressed optimism for the final quarter of the financial year, citing upcoming summer releases — including Michael, the Michael Jackson biopic; and Mortal Kombat 2 — as potential revenue drivers.

Despite nine-month revenues of $715.6 million, down from $945 million in the previous year, Palace reported a reduced net loss of $6.2 million, compared with $164.2 million for the same period in 2025. The improvement was supported by an insurance payout for its damaged Montego Bay cinema, which boosted cash flow and strengthened the bottom line.

Even as some operating costs remained high due to local and international economic pressures, management noted that lower activity during the quarter helped to trim certain expenses, enhancing the company’s overall performance.

“With the overall objective of sustainable growth still high on the agenda, the move towards more effective methods of product delivery is now more important than ever,” the directors noted.

As Palace explores new revenue opportunities, management emphasised a continued focus on enhancing the cinematic experience and positioning the company as a dynamic player in the broader entertainment industry. By leveraging technology and maximising its physical assets, Palace aims to offer a full-screen experience that cannot be replicated at home.

A recent partnership with Caribbean Premiere Sports Limited (CPSL), effective this month, allows the company to showcase live sports and alternative content on big screen.

“We believe that in this season a steadfast spirit and a mindset that is committed to recognising the changing times and pivoting strategically is what is required to ensure longevity,” the directors added, underscoring the company’s ambition to capture a larger share of the film industry’s revenue.