InterContinental incurs Tk23cr loss in Jan-Mar
Highlights
- Loss in 9 months of FY25: Tk74.61cr
- YoY increase by Tk18.77cr
- Per-share loss: Tk7.63
- Loss in 9 months of FY24: Tk55.84cr
- Per-share loss: Tk5.71
Bangladesh Services Ltd (BSL), the state-owned owner of InterContinental Dhaka, reported a loss of Tk22.59 crore in the January-March quarter of the current fiscal year, according to a stock exchange filing today.
The hotel and tourism firm incurred a per-share loss of Tk2.31 for the quarter, a 354% increase from the Tk0.54 loss per share reported during the same period last year.
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With the Jan-Mar quarter's losses, the company's cumulative loss for the first nine months of the fiscal year (July to March) has reached Tk74.61 crore, reflecting a per-share loss of Tk7.63 – up from Tk55.84 crore and a per-share loss of Tk5.71 during the same period in the previous fiscal year.
As per the disclosure, its net operating cash flow per share increased by 600% to Tk1.96, but net asset value per share declined by 3.35% to Tk220.60 compared to the financials on 30 June 2024.
The state-owned firm's officials attribute the continued losses to the heavy loan burden incurred for the hotel's renovation. The high-interest payments, they said, have made financial recovery difficult without government intervention.
Recently, InterContinental Dhaka has sought Tk900 crore in financial support from the government, citing severe financial distress following a costly renovation.
Bangladesh Services has proposed a capital injection of Tk400 crore through share issuance in the government's name and a long-term loan of Tk500 crore, either interest-free or at a low rate.
The Ministry of Civil Aviation and Tourism has formally appealed to the finance ministry on BSL's behalf, warning that the firm could face bankruptcy unless urgent financial assistance is provided.
According to the proposal, the funds would be used to clear outstanding dues and stabilise the company's operations. BSL forecasts that, with support, it could generate a cumulative net cash flow of Tk730 crore over the next 10 years, enabling it to return to profitability by 2030, resume dividend payments, and repay its loan obligations ahead of schedule.
As of June 2024, BSL's total loan stood at Tk897 crore, including Tk503 crore in principal and Tk394 crore in accumulated interest. The company currently pays about Tk80 crore annually in interest alone.
