Transcorp Hotels Plc (NGX: TRANSCOHOT) has reported a 5% rise in third-quarter profit after tax to ₦15.5 billion, up from ₦14.8 billion a year earlier, even as revenue slipped.
In its unaudited results for the quarter ended September 30, 2026, the hospitality company said revenue fell 3% year-on-year to ₦69.5 billion from ₦71.3 billion.
Profit before tax edged up 1% to ₦22.5 billion from ₦22.4 billion.
The improvement came mainly from tighter cost control.
Administrative expenses fell 2% to ₦29.3 billion, while net finance cost dropped 35% to ₦1.5 billion from ₦2.3 billion. Net profit margin widened to 22.3%.
Group revenue fell 2.6% to N69.46 billion from N71.30 billion a year earlier. Rooms revenue was broadly flat at N46.29 billion, while food and beverage dropped to N19.27 billion from N21.02 billion. Lower cost of sales (N16.15 billion against N17.26 billion) kept gross profit at N53.32 billion, close to last year’s N54.05 billion.
Earnings per share rose to 152 kobo from 145 kobo.
The July–September quarter was less rosy. Revenue grew 2.7% to N25.04 billion, but operating expenses jumped to N9.97 billion from N7.67 billion. As a result, quarterly profit after tax fell to N5.00 billion from N6.14 billion, a decline of about 19%.
The balance sheet changed significantly. Borrowings rose to N54.96 billion from N10.52 billion at the end of 2025, driven mainly by a new N42.92 billion loan at 22% interest, maturing in March 2031. Finance costs more than doubled to N5.91 billion.
The directors reported no going concern doubts, citing a working capital surplus and a 12-month cash flow forecast showing the group can meet its obligations.
The company’s portfolio includes Transcorp Hilton Abuja and the newly launched Transcorp Centre, a 5,000-seat events and conference venue. Management said its priorities for the rest of the year are sustaining margin growth and deepening guest and client engagement.
Administrator and Writer
