Palace Amusement Sales? 87.6% for Q2 Dec 2020

March 8, 2021

Palace Amusement?️? finally released their Dec 2020 results & as expected… Its not good??

Revenues? 87.6% for Q2

Meaning, in Dec 2019 for instance they made $255 million in sales from the Carib Cinema location alone (its largest)

In 2020, that fell to just $21mThat’s an over 90% drop for their largest location, during Oct to Dec 2020!

Added to that they have had to borrow money, so now

  • Finance costs have more than tripled
  • And they are now reporting a Loss of -$82m. 4 and a half times the loss of -$18m made last year Dec 2019 
  • They will definitely need some cash to continue their operations. Company has a negative cash balance (despite getting over $125m in loans)

On the bright side??, they were able to bring in $9m in sales from the New Kingston Drive-In??️? 

If they can milk the drive-in ???️ business, they can bring in some more revenue… but it will definitely not be saving the business at this rate

In the 3 months (Oct-Dec)

  • ?+$9m from drive-in
  • ?-$234m lost on Carib alone
    Madness

Land is costing them -$600k per month Here’s how the J$9m was made from the Drive In business

Less than half came from movie ticket sales

  • 46% from tickets ?

The rest

  • 27% food ???????
  • 25% screen ads?

Then subtract J$600k * 3 months (rent), plus cost of food and other items… ?‍♂️

Last Thing. Important to note that:

  • Cinemas were closed for nearly 4 of the 6 months
  • Due to curfew hours, the number of shows were down to 1 per day
  • Due to low attendance Sovereign and Montego Bay closed In September
  • Drive In started late Oct

UPDATE: During trading, Palace’s stock hit a 3 year low of $700

  • It was a low as $560 in 2018 and went all the way up to $2900 last year
  • Not good news for those who bought anytime in the last few years
  • Palace is a stock that has CONSISTENTLY done well (maybe due to the limited volumes traded)

What could they do? Here’s one suggestion we made on twitter

Update (Mar 10, 2021): 2 days after their results came out (on March 8), the company advised that due to government announcements all cinemas would be closed immediately until further notice.

Wishing them good luck

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