Palace Multiplex in Montego Bay.
After accounting for $9 million in taxation, the company ended with nearly $33 million in profit or $22.97 per share. The operation generated $72 million in cash for the year, an improvement from $48 million in 2016.
Revenues from box office, rose by 7.5 percent at the Carib cinema, 8.3 percent at Cineplex and 10 percent at Montego Bay Multiplex. Overall revenues from box office, confectionaries sales, screen advertising and others rose a strong 14.5 percent at Carib, 9 percent in Montego Bay and 7.2 percent at Cineplex, all ahead of inflation of 4.4 percent for the period. Based on the trend in revenue growth, fiscal year 2018 should see $100 million increase and profit per share rising to $50, assuming good quality box office offerings during the period. Pickup in economic activity is great for the company, as its patrons will have more disposable income from increased employment and the recent reduction of taxation on their income and relatively low inflation.
Depreciation remained relatively steady at $33 million while administrative cost grew a mere $3 million to $171 million.
At end of June, Palace had cash funds of $141 million and quoted equity of $16 million, up from $100 million and $15 million respectively in 2016. Only $29 million is in borrowed funds while working capital stood at $122 million, a great improvement over the $76 million at June 2016.
The stock is listed on the Jamaica Stock Exchange and last traded at $550, earlier this year and now boast a price earnings ratio based on the above forecast of 11.
