PAL reports three months net loss attributable to shareholders of $94.67 million

December 12, 2020

The Palace Amusement Company (1921) Limited (PAL), for the three months ended September 30, 2020, booked a 92% reduction in revenue to $29.49 million (2019: $369.99 million), while direct expenses decreased by 67% to $100.71 million (2019: $304.90 million). As a result, PAL recorded a gross loss of $71.22 million relative to a gross profit of $65.09 million booked September 2019.

Other operating income declined 77% to $756,000 (2019: $3.34 million), while administrative expenses decreased by 58% to $20.95 million (2019: $49.62 million). Consequently, operating loss for the period amounted to $91.42 million relative to operating income of $18.81 million reported for the corresponding period in 2019.

Interest expense rose to $3.06 million, a 352% increase when compared to $678,000 recorded in September 2019.

As such, loss before tax for the period closed at a total of $94.48 million, versus a profit of $18.13 million booked twelve months earlier. The company incurred a tax charge of $234,000, as a result, net loss amounted to 94.71 million, versus a net profit $18.13 million booked September 30, 2019.

Total comprehensive loss amounted to $93.39 million, relative to an income of $20.08 million as at September 30, 2019.

Net loss attributable to stockholders of the Company amounted to $94.67 million for the period under review relative to profit attributable to stockholders of $18.09 million booked in 2019.

As such, the loss-per-share for the period amounted to $65.88, relative to 2019 earnings-per-share of  $12.59. The twelve month loss-per-share amounted to $147.94.  The amount of shares used in our calculation is 1,437,028 units. PAL closed the trading period on December 10, 2020 at a price of $1,200.00.

Balance Sheet Highlights:

The company, as at September 30, 2020, recorded total assets of $1.03 billion, an increase of 39% when compared to $741.57 million recorded last year. The growth year over year was due mainly “Rights of use assets” which closed at $318.75 million (2019: nil).

Total Stockholders’ Equity as at September 30, 2020 closed at $302.22 million, compared to $518.95 million for the corresponding period last year. This resulted in a book value of $210.31 per share compared to $361.13 as at September 30, 2020.


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