November 16, 2023

The Palace Amusement Company Limited (PAL) for the first quarter ended September 30, 2023, reported a 74% increase in revenue totalling $433.91 million compared to $249.71 million in the corresponding three months last year.

Direct expenses amounted to $343.05 million (2022: $250.41 million), this represents an increase of 37% year over year. Consequently, gross profit increased to $90.86 million compared to a loss of $705,000 for the first quarter ended September 30, 2022.

Administration expenses increased by 27% to close at $53.43 million (2022: $42.02 million), while Other operating income decreased by 25% from $2.66 million in 2022 to $2.00 million for the three months. As a result, Operating Profit for the first quarter amounted to $39.43 million, relative to a loss of $40.06 million reported in 2022.

Finance costs for the three months amounted to $16.72 million, a 20% increase relative to $13.92 million reported in 2022. Net Profit totalled $22.71 million (2022: Net Loss of $53.99 million).

Total Comprehensive Income for the three months reached $23.08 million (2022: Loss of $56.80 million). Net Profit attributable to stockholders of the company for the three months amounted to $22.72 million, from the net loss of $53.97 million reported in 2022.

Consequently, Earnings Per Share for the three months amounted to $0.03 (2022: LPS: $0.06). The twelve-month trailing EPS was $0.35 and the number of shares used in these calculations was 862,216,800. Notably, PAL’s stock price closed the trading period on November 15, 2023, at a price of $1.06 with a corresponding P/E ratio of 2.99x.

Balance Sheet Highlights

The company’s assets totalled $1.75 billion (2022: $1.73 billion). The marginal increase in assets resulted from ‘deferred tax assets’ of $151.92 million being recorded (2022: nil).

Shareholder’s equity was $603.58 million (2022: $326.80 million), representing a book value per share of $0.70 (2022: $0.38).

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