Transcorp Hotels records N10.1 billion pre-tax profit in Q3 2025, up 71%

Transcorp Hotels Plc has released its financial results for the third quarter of 2025, reporting a pre-tax profit of N10.1 billion, up from N5.9 billion in the same period of 2024.

This brought its nine-month pre-tax profit to N22.4 billion, a 36.3% increase driven by strong revenue growth.

Revenue for the quarter rose by 31.8% year-on-year to N24.7 billion, bringing total revenue for the first nine months to N72.3 billion, compared to N48.4 billion in the same period last year.

• Room revenue made up the largest share at N48 billion, followed by food and beverage sales at N21 billion.

• Shop rentals contributed N1.3 billion, while event center hall rentals brought in N1.1 billion, with other services accounting for the rest.

However, the cost of sales increased slightly, reaching N5.8 billion in the third quarter, up 4.8%.

• Despite this, gross profit remained strong at N18.8 billion in Q3, representing a 43.4% year-on-year growth.

Less favorably, other operating income declined from N735.7 million in Q3 2024 to N130.9 million, while operating expenses spiked by 9% to N8 billion.

• Even so, operating profit remained solid at N10.9 billion, up from N6.5 billion in the same period last year, reflecting the company’s strong revenue growth and operational efficiency.

Finance costs fell to N957.6 million from N1.06 billion in Q3 2024, reflecting lower borrowings and intercompany loans.

• As a result, pre-tax profit jumped 70.6% to N10.1 billion in the quarter.

• After an income tax charge of N4 billion, net profit stood at N6.1 billion, up 69.6% from the same period last year.

Balance sheet 

On the balance sheet, total assets rose to N154.2 billion, up 9.6%, driven mainly by property, plant, and equipment, which accounted for N122.8 billion.

In terms of equity, retained earnings grew to N70.4 billion from N63.2 billion in December 2024, bringing total equity to N88.2 billion, a 9.6% increase.

However, total liabilities stood at N66 billion, slightly higher than the N60.1 billion recorded in the previous period, with trade and other payables amounting to N28.9 billion.

Key highlights (Q3 2025 vs Q3 2024) 

• Revenue: N24.7 billion, +31.83% YoY
• Cost of sales: N5.8 billion, +4.79% YoY
• Gross profit: N18.8 billion, +43.41% YoY
• Operating profit: N10.9 billion, +68.17% YoY
• Pre-tax profit: N10.1 billion, +70.57% YoY
• Total assets: N154.2 billion, +9.63% YoY
• Retained earnings: N70.4 billion, +11.47% YoY

Comments: 

According to the Chairman of Transcorp Hotels Plc, Emmanuel Nnorom, the company’s strong third-quarter results reflect its focus on cost discipline, operational efficiency, and putting customers first.

He said Transcorp Hotels remains committed to achieving sustainable growth and creating long-term value for its investors.

Managing Director/CEO, Uzo Oshogwe, echoed this sentiment, stating that the results highlight the company’s drive for excellence and its commitment to redefining hospitality in Africa.

She noted that the newly opened 5,000-seat event center positions Nigeria as a leading destination for global conferences and events.

Oshogwe added that with its strong asset base and dedicated team, Transcorp Hotels is well-positioned to sustain its growth and continue delivering value to shareholders.

As of the close of trading on October 20, 2025, shares of the company were priced at N164.6, up 41.9% year to date.