ABUJA, Nigeria — Transcorp Hotels Plc reported a profit before tax of ₦22.53 billion for the nine months to September 30, 2026, a marginal 0.55% rise from ₦22.40 billion a year earlier. The Transcorp Hotels profit held up even though revenue and operating profit both slipped.
The figures are in the company’s unaudited consolidated and separate financial statements, released on the Nigerian Exchange (NGX). Third-quarter profit before tax fell to ₦8.83 billion from ₦10.18 billion.
Transcorp Hotels profit holds steady despite weaker revenue
- Revenue: ₦69.46 billion, down 2.58% from ₦71.30 billion
- Gross profit: ₦53.32 billion, down 1.36% from ₦54.05 billion
- Operating profit: ₦24.36 billion, down 1.38% from ₦24.71 billion
- Profit before tax: ₦22.53 billion, up 0.55% from ₦22.40 billion
- Profit after tax: ₦15.54 billion, up 4.85% from ₦14.82 billion
- Basic earnings per share: 152 kobo, up 4.83% from 145 kobo
A lower tax expense helped lift profit after tax by more than the pre-tax figure.
What drove the Transcorp Hotels profit and revenue
Hospitality in Nigeria is the company’s only operating segment. Room revenue remained the largest contributor at ₦46.29 billion, or about 66.6% of total revenue, down slightly from ₦46.65 billion.
Food and beverage revenue fell about 8.32% to ₦19.27 billion from ₦21.02 billion, accounting for roughly 27.7% of revenue. Event-centre hall rental revenue dropped to ₦981.52 million from ₦1.15 billion, while shop rental revenue was broadly flat at ₦1.36 billion.
Service-charge revenue rose to ₦690.64 million from ₦396.82 million, and recreation-service revenue to ₦443.25 million from ₦312.46 million. Those gains did not offset the declines in the larger room and food-and-beverage lines.
Costs showed some improvement:
- Cost of sales declined to ₦16.15 billion from ₦17.26 billion, lifting the gross margin to about 76.8% from 75.8%.
- Operating expenses fell to ₦29.32 billion from ₦29.86 billion.
- Employee costs eased to ₦4.46 billion, energy costs to ₦3.57 billion and repairs and maintenance to ₦2.06 billion from ₦2.99 billion.
- Management fees declined to ₦7.62 billion from ₦8.03 billion.
- Depreciation rose to ₦3.45 billion from ₦2.41 billion, and credit-card collection charges to ₦1.04 billion from ₦884.96 million.
Finance costs surge while finance income cushions profit
Kanyi Daily reports that finance costs were the main pressure point. They rose to ₦5.91 billion from ₦2.80 billion, with interest on debt climbing to ₦5.51 billion from ₦1.40 billion.
Finance income offset much of the increase, jumping to ₦4.46 billion from ₦520.68 million. Most of it came from interest on intercompany loan receivables, which reached ₦4.19 billion against ₦502.58 million. That cushion kept nine-month profit before tax slightly higher.
The third quarter was weaker. Profit before tax fell 13.18% to ₦8.83 billion. Operating profit declined to ₦9.56 billion from ₦11.00 billion, while finance costs rose to ₦2.85 billion from ₦957.69 million.
Balance sheet and cash flow
Total assets rose to ₦206.82 billion from ₦159.91 billion at the end of 2025. Current trade and other receivables jumped to ₦50.53 billion from ₦11.00 billion, and cash and bank balances rose 19.94% to ₦20.34 billion from ₦16.96 billion.
Total borrowings climbed to ₦54.96 billion from ₦10.52 billion in December 2025.
Operating cash flow turned negative at ₦15.93 billion, against a positive ₦18.82 billion a year earlier. Investing activities used ₦5.92 billion, while financing brought in ₦27.02 billion, including ₦44.48 billion in borrowing proceeds and ₦13.32 billion in dividends paid. Cash increased by ₦5.17 billion over the period.
Transcorp Hotels share price
The Transcorp Hotels share price closed at ₦290.50 on Friday, October 16, 2026, up 76.49% year on year from ₦164.60.
