Since the IPO, Blitz Megaplex Shareholders Have Not Gotten Anything

PT Graha Layar Prima Tbk (BLTZ), the owner of Blitz Megaplex cinema network, has never experienced a penny of profit since its IPO in October 2014. What caused it?

BLTZ_fundamental

Source: Financial Statements of the Company

Some aspects of operations resulting in losses are:
1. The cost of salaries and rent in general and administrative costs are not proportional to the amount of income earned. Moreover, these components are fixed costs that would depress the company’s financial performance in difficult moments;
2. The burden of loans increased significantly from Rp 2 billion last year to Rp 4.17 billion within 3 months this year;
3. The exchange rate differences are large enough and indicate the amount of exposure that is not managed properly against the currency.