Transcorp Hotels Plc recorded a 5 per cent year-on-year increase in profit after tax to ₦15.5 billion in the third quarter ended September 30, 2026, as lower financing costs and moderated administrative expenses helped offset a decline in revenue.
The hospitality subsidiary of Transnational Corporation Plc reported profit after tax of ₦15.5 billion, up from ₦14.8 billion in the corresponding period of 2025, according to its unaudited financial results.
Profit before tax rose marginally by 1 per cent to ₦22.5 billion from ₦22.4 billion, while revenue fell 3 per cent to ₦69.5 billion from ₦71.3 billion, indicating that improved cost management supported earnings despite weaker top-line performance.
The results highlight the company’s ability to protect profitability amid revenue pressure, with lower finance costs and administrative expenses helping to sustain margins.
Transcorp Hotels’ net profit margin expanded to 22.3 per cent, according to Uzoamaka Oshogwe, the managing director and chief executive officer, who said the company was prioritising earnings discipline, efficient capital allocation and profitable growth.
“Our Q3 performance demonstrates the strength of our earnings discipline. Despite a 3% year-on-year decline in revenue, we grew profit after tax by 5% and expanded our net profit margin to 22.3%,” Oshogwe said.
She added that the company was directing capital towards opportunities across its hospitality, events and lifestyle businesses, with investments subject to financial and return benchmarks.
The improvement in profitability was supported by a 35 per cent reduction in net finance cost to ₦1.5 billion from ₦2.3 billion a year earlier. Administrative expenses also declined by 2 per cent to ₦29.3 billion from ₦29.9 billion.
The lower financing burden is particularly significant as the company expands its asset base and manages the funding requirements associated with its hospitality and events portfolio.
Oluwatobiloba Ojediran, chief financial officer of Transcorp Hotels, said the results reflected an improvement in earnings quality, supported by reduced financing costs and tighter control of administrative expenses.
“Net finance cost eased by 35% to ₦1.5 billion, representing about 2% of revenue, compared with more than 3% a year ago, while administrative expenses were held below prior-year levels,” Ojediran said.
Beyond its earnings performance, the company reported a stronger balance sheet, with total assets increasing by 29 per cent to ₦206.8 billion from ₦159.9 billion as of December 2025. Shareholders’ funds stood at ₦97.5 billion.
Ojediran stated further that management was actively managing liabilities and funding costs to ensure that future expansion was supported by sustainable financing and clear return thresholds.
“As the balance sheet scales, we are actively managing our liabilities and funding costs, keeping our capital structure prudent, and making sure that future growth is backed by sustainable sources of capital and clear return thresholds,” he said.
The company’s operating portfolio includes Transcorp Hilton Abuja, which serves business and leisure travellers, and Transcorp Centre, a 5,000-seat event and conference venue intended to strengthen its presence in the meetings, events and lifestyle market.
These businesses provide the platform for the company’s strategy to deepen customer engagement and pursue opportunities in hospitality and large-scale events.
Oshogwe said the company’s priorities for the remainder of the year included sustaining margin growth, improving guest and client engagement, and positioning the business to benefit from stronger demand.
