Quarterly activity report overview

International Equities Corporation (ASX:IEQ) has released its unaudited quarterly activity and cash flow report for the quarter ending September 30, 2024. The company reported a significant revenue decline of 74.18% to AUD 496,000 compared to the previous year. Despite this, the loss after tax attributable to members improved by 29.36% to AUD 344,000.

Corporate strategy and outlook

International Equities Corporation Ltd (ASX:IEQ) has faced significant financial challenges this past quarter, primarily due to a 74.18% drop in revenue to AUD 496,000. However, the company managed to reduce its loss after tax by 29.36% to AUD 344,000. IEQ's operations were notably impacted by economic slowdowns, rising payroll costs, and inflation, which have affected the tourism sector's recovery. Despite these challenges, IEQ anticipates better hotel occupancy rates in the upcoming seasons. The company continues to hold its apartments for lease in the current market, maintaining stability in its sales and leasing segment. With a net tangible asset backing increase to AUD 0.0466 per security and a cash reserve of AUD 1.84 million, IEQ is strategically positioned to enhance its presence in hospitality and potentially explore property development when economic conditions improve.

Executive commentary insights

The slowing economy, coupled with increased payroll costs, high interest rates, and inflation, has continued to hinder our post-COVID recovery, particularly in the tourism sector. While our Melbourne-based hotels, Seasons Heritage Melbourne and Seasons Botanic Gardens, have experienced a slow recovery in trading, we expect improved confidence and occupancy rates in the upcoming spring and summer seasons due to increased activities and events.