Transcorp Hotels Plc has reported a profit before tax of N22.53 billion for the nine months ended September 2026.
This marks a marginal 0.55% increase from N22.40 billion in the corresponding period of 2025.
The result is contained in the company’s unaudited consolidated and separate financial statements for the period ended September 30, 2026 released on the Nigerian Exchange (NGX).
For the third quarter, profit before tax fell to N8.83 billion from N10.18 billion a year earlier.
Key Highlights
- Revenue: N69.46 billion (Down 2.58% YoY from N71.30 billion).
- Gross profit: N53.32 billion (Down 1.36% YoY from N54.05 billion).
- Operating profit: N24.36 billion (Down 1.38% YoY from N24.71 billion).
- Profit before tax: N22.53 billion (Up 0.55% YoY from N22.40 billion).
- Profit after tax: N15.54 billion (Up 4.85% YoY from N14.82 billion).
- Basic earnings per share: 152 kobo (Up 4.83% from 145 kobo).
Driving the numbers
Transcorp Hotels’ nine-month results show a slight decline in revenue and operating profit.
- Revenue fell 2.58% year on year to N69.46 billion, while operating profit declined by 1.38% to N24.36 billion. However, lower tax expense helped lift profit after tax by 4.85% to N15.54 billion.
- The company’s operating segment, hospitality, with its operations located in Nigeria. Room revenue remained the largest contributor, generating N46.29 billion, equivalent to approximately 66.6% of total revenue. This was down from N46.65 billion a year earlier.
- Food and beverage revenue declined to N19.27 billion from N21.02 billion, a decrease of approximately 8.32%. It accounted for about 27.7% of total revenue.
- Event-centre hall rental revenue fell to N981.52 million from N1.15 billion, while shop rental revenue was broadly flat at N1.36 billion.
Other categories recorded mixed performance. Service-charge revenue increased to N690.64 million from N396.82 million, while recreation-service revenue rose to N443.25 million from N312.46 million. These increases were not sufficient to offset the declines in the larger room and food-and-beverage categories.
- The cost structure shows some improvement in direct and operating expenses. Cost of sales declined to N16.15 billion from N17.26 billion, helping gross profit margin increase to approximately 76.8% from 75.8%. Operating expenses also decreased to N29.32 billion from N29.86 billion.
- Within operating expenses, employee costs declined to N4.46 billion from N4.55 billion, energy costs fell to N3.57 billion from N3.87 billion, and repairs and maintenance expenses decreased to N2.06 billion from N2.99 billion. However, depreciation rose to N3.45 billion from N2.41 billion, while credit-card collection charges increased to N1.04 billion from N884.96 million. Management fees declined to N7.62 billion from N8.03 billion.
- Finance costs were a significant pressure point. They increased to N5.91 billion from N2.80 billion, with interest on debt rising to N5.51 billion from N1.40 billion. At the same time, finance income increased to N4.46 billion from N520.68 million, largely reflecting higher interest income on intercompany loan receivables, which reached N4.19 billion compared with N502.58 million a year earlier.
The increase in finance income helped offset the higher finance costs, contributing to the slight increase in nine-month profit before tax. Nevertheless, third-quarter profit before tax fell 13.18% year on year to N8.83 billion. In that quarter, operating profit declined to N9.56 billion from N11.00 billion, while finance costs rose to N2.85 billion from N957.69 million.
Balance Sheet
The balance sheet expanded during the period, with total assets rising to N206.82 billion from N159.91 billion at the end of 2025.
- Current trade and other receivables increased to N50.53 billion from N11.00 billion, while cash and bank balances reached N20.34 billion.
- Cash and bank balances reached N20.34 billion, up 19.94% from N16.96 billion at 31 December 2025.
- Total borrowings also increased substantially, reaching N54.96 billion compared with N10.52 billion at the end of December 2025.
- Cash flow provided a further point of attention. Net cash from operating activities was negative N15.93 billion, compared with positive N18.82 billion in the corresponding 2025 period.
Net cash used in investing activities was N5.92 billion, while net cash from financing activities was N27.02 billion, including N44.48 billion in borrowing proceeds and N13.32 billion in dividends paid. Cash increased by N5.17 billion over the period, leaving the company with N20.34 billion in cash and bank balances at the end of September.
Market reaction
The company’s share price stood at N290.50 at the close of trading on Friday, October 16, 2026.
The share price has risen by 76.49% YoY, up from N164.60.