Transcorp Hotels Plc increased its profit after tax by 5 per cent to ₦15.5 billion in the third quarter of 2026, as lower financing and administrative expenses helped offset a decline in revenue.
The hospitality subsidiary of Transnational Corporation Plc disclosed this in its unaudited financial results for the period ended September 30, 2026. Profit before tax rose marginally by 1 per cent to ₦22.5 billion from ₦22.4 billion recorded in the corresponding period of 2025.
Revenue, however, fell by 3 per cent to ₦69.5 billion from ₦71.3 billion a year earlier, indicating that improved cost management played a significant role in sustaining earnings despite weaker turnover.
Administrative expenses declined by 2 per cent to ₦29.3 billion from ₦29.9 billion, while net finance costs dropped by 35 per cent to ₦1.5 billion, compared with ₦2.3 billion in the previous year.
The combined reductions in these two expense categories amounted to approximately ₦1.4 billion, based on the reported figures. The company’s net profit margin consequently increased to 22.3 per cent from about 20.8 per cent in the corresponding period of 2025.
Managing Director and Chief Executive Officer of Transcorp Hotels, Uzoamaka Oshogwe, said the results reflected the company’s focus on protecting margins and improving the quality of its earnings despite the revenue decline.
“Despite a 3 per cent year-on-year decline in revenue, we grew profit after tax by 5 per cent and expanded our net profit margin to 22.3 per cent. We are converting revenue into stronger profits, protecting margins, and building a more resilient business,” she said.
Oshogwe added that the company was directing capital towards opportunities across its hospitality, events and lifestyle businesses, with investments assessed against financial performance and expected returns.
She said the company’s priorities for the remainder of the year included sustaining margin growth, strengthening engagement with guests and clients, and improving returns as demand strengthens.
Transcorp Hotels also reported an expansion of its balance sheet, with total assets rising by 29 per cent to ₦206.8 billion from ₦159.9 billion at the end of December 2025. Shareholders’ funds stood at ₦97.5 billion as of September 30, 2026.
Chief Finance Officer, Oluwatobiloba Ojediran, said the decline in finance costs had reduced the proportion of revenue absorbed by financing expenses to approximately 2 per cent, compared with more than 3 per cent a year earlier.
She added that the company was managing its liabilities and funding costs while maintaining a prudent capital structure, with future expansion expected to be supported by sustainable financing and clear investment-return benchmarks.
The results highlight the role of expense control in supporting Transcorp Hotels’ profitability during a period of lower revenue. Sustaining that performance will also depend on the company’s ability to strengthen income generation and secure adequate returns from its growing asset base.
