Transcorp Hotels’ Q3 profit rises 5% despite revenue decline

Transcorp Hotels Plc grew its profit after tax by 5 percent to N15.5 billion in the third quarter of 2026, as lower financing costs and administrative expenses helped offset a decline in revenue.

Transcorp Hotels is a subsidiary of Transnational Corporation Plc, a listed Nigerian conglomerate with investments in hospitality, power, and energy.

The hospitality company, which operates Transcorp Hilton Abuja, reported revenue of N69.5 billion for the quarter ended September 30, down 3 percent from N71.3 billion recorded in the corresponding period of 2025.

Profit before tax edged up 1 percent to N22.5 billion from N22.4 billion, according to the company’s unaudited financial results released on Monday.

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The stronger bottom line, despite weaker revenue, points to improved cost management and lower financing expenses during the period.

Net finance costs fell 35 percent to N1.5 billion from N2.3 billion a year earlier, while administrative expenses declined 2 percent to N29.3 billion from N29.9 billion.

The company’s net profit margin rose to 22.3 percent, meaning it retained about 22 kobo in profit after tax for every N1 of revenue generated during the period.

Uzoamaka Oshogwe, managing director and chief executive officer of Transcorp Hotels, said the company remained focused on protecting margins and directing capital towards opportunities with stronger potential returns.

“Despite a 3 percent year-on-year decline in revenue, we grew profit after tax by 5 percent and expanded our net profit margin to 22.3 percent,” she said.

The company’s performance comes as hospitality operators navigate shifts in consumer spending and business travel demand. However, the results did not break down revenue by business segment or explain the quarterly decline.

Transcorp Hotels said it was deploying capital across its hospitality, events, and lifestyle businesses, with investments subject to financial and return benchmarks.

Its portfolio includes Transcorp Hilton Abuja and Transcorp Centre, a 5,000-seat event and conference venue in Abuja.

The company’s balance sheet also expanded during the period, with total assets rising 29 percent to N206.8 billion from N159.9 billion at the end of December 2025.

Shareholders’ funds stood at N97.5 billion, while management said it was monitoring liabilities and funding costs to ensure future expansion was supported by sustainable capital.

Oluwatobiloba Ojediran, chief financial officer, said the reduction in finance costs and the containment of administrative expenses improved the quality of the company’s earnings.

Net finance costs accounted for about 2 percent of revenue in the third quarter, compared with more than 3 percent a year earlier, according to the company.

However, the revenue decline suggests that sustaining profit growth will depend partly on the company’s ability to strengthen income generation while maintaining the cost efficiencies achieved during the period.