- Over N60 million was lost by Ikeja Hotel in the first three months of this year, as the company record disappointing results
- During the first quarter of this year, Ikeja Hotel's revenue recorded a shortfall, declining by 40.11%
- The loss was also reported in before-tax earnings and that of after-tax earnings for the first quarter of this year
Ikeja Hotel won't like to have another quarter like the first of this year after recording operating loss up to over N60 million in just three months. The company's earnings report didn't give shareholders much to celebrate about.
In the first quarter of this year, Ikeja Hotel's operating loss was put at N65.83 million, showing the level of impact COVID-19 pandemic and slow hospitality recovery has on the company's earnings.
In 2020 Q1, the hotel had reported N581.58 million. This reflects 111.32% after both quarters of 2020 and this year were compared. Note that the hospitality industry was one of the sectors that was shut down the longest.
Ikeja Hotel's revenue also declined as the company generated N1.72 billion in the first quarter of 2021, falling below the N3.87 billion revenue that was generated during the corresponding period in 2020.
This fall in revenue represents 40.11% difference comparing Q1 2020 and Q1 2021. This was contained in the company's financial statements for the period under review.
In the first quarter of this year, the company also recorded loss before tax of N290.58 million, against the N375.14 million recorded during the same period of 2020 Q1.
The company also reported loss in its after-tax earnings of Q1 2021, which was N294.88 million loss, as opposed to the N252.53 million Ikeja Hotel recorded during the corresponding period of 2020.
Meanwhile, Legit.ng had earlier reported that there's a disagreement between Central Bank of Nigeria and First Bank over the replacement of its Managing Director, Sola Adeduntan.
Adeduntan was replaced with Gbenga Shobo even though he still has about eight months before his tenure as First Bank head end. This decision was frowned at by CBN.
The apex bank questioned First Bank's motive and threatened the bank with disciplinary action. The regulator said it wasn't informed before the replacement was made.