Palace Amusement Returns To Quarterly Profit After $192m Insurance Claim

Palace Amusement Company Ltd moved back into the black for the quarter after booking a $192-million insurance settlement linked to hurricane damage at its Montego Bay theatre, even as the cinema operator saw takings slide with one site no longer in service.

In notes accompanying the accounts, Palace said Hurricane Melissa caused severe disruption in western Jamaica and that its Palace Multiplex in Montego Bay, St James, was also affected. The company stated: "The disaster (Melissa) wreaked havoc across the western regions of Jamaica, and our cinema - Palace Multiplex, in Montego Bay, St James was not spared its wrath." It added that, after discussions with insurers on post-Melissa damage and a claim covering contents and tenant's improvement, "careful analyses were done to plot a way forward."

For the three months to March 31, Palace reported profit of about $109 million, reversing a $101-million net loss in the same quarter last year. Revenue declined by one-third to $163 million, with the fall reflecting the permanent shutdown of Palace Multiplex in Montego Bay after Hurricane Melissa in October 2025.

Over the nine months ended March 2026, the company's net loss improved to $6.2 million from $164.2 million a year earlier. Revenue for the period dropped 24 per cent, moving to $715.7 million from $944.6 million. Palace had $80 million in cash at March 31, almost half the level held a year before, while its accumulated deficit stood at $280.2 million, compared with $307 million previously.

The company had already disclosed in March that the Montego Bay closure would be final. Directors Douglas Graham and Melanie Graham wrote in the notes: "It was deemed not financially viable to rebuild the cinema at this time."

Palace had operated at the Montego Bay location since 2001. The directors, however, did not rule out a later return to western Jamaica, saying the company hoped "future endeavours can be structured and new alliances made to reap the rewards of the years of investment in that geographical space".

With the location gone, Palace is looking for other income streams. It has partnered with Trend Media and Caribbean Premier Sports Limited, the operators of RUSH Sports and RUSH Prime TV, to show live sports and premium programming at its remaining cinemas from May. The company is also working to lift spending by each customer and broaden the use of its theatres within the entertainment market.

Films now on the slate include the Michael Jackson biopic Michael, Mortal Kombat 2, and The Mandalorian and Grogu. Palace also pointed to a National Research Group study which found that Generation Alpha, people born between 2013 and 2025, are more drawn to cinema-screen experiences than older age groups.