Bangladesh Services incurs Tk50cr loss in first half of FY25

State-owned Bangladesh Services Limited, the owner of InterContinental Dhaka hotel, has incurred a loss of Tk50.85 crore in the first half of the current fiscal year, with a per-share loss of Tk5.20.

The losses during July to December 2024 nearly doubled compared to the first half of the previous fiscal year, according to its financial report.

In H1 of the previous FY24, the company reported a loss of Tk26.97 crore, with a per-share loss of Tk2.74, as per a disclosure published on the stock exchange website yesterday.

An official at the company, speaking on condition of anonymity, said that due to unrest in July last year and changes in the political regime, hotel bookings and foreign guest arrivals declined significantly, leading to increased losses.

Listed on the capital market in 1984, Bangladesh Services has been suffering losses for nine consecutive fiscal years now.

In the last fiscal year, 2023-24, the company incurred a loss of Tk78 crore and did not declare any dividends for its shareholders.

By the end of FY24, its accumulated losses had surged to around Tk700 crore. It has not paid a dividend since FY14, according to a stock exchange filing.

Its share price has remained stagnant at Tk5.20, far below the face value, for years on the DSE, as the government holds 99.68% of the company's shares, leaving only a small portion owned by general shareholders.

In the second quarter, from October to December, its per-share loss increased to Tk1.85, compared to Tk1.72 per share in the same period of the previous fiscal year.

Its net operating cash flow per share stood at Tk1.97 in the first half, down from Tk2.87 in the same period of the previous fiscal year.