Transcorp Hotels Sustains Growth Momentum With 69% Growth in PBT

Kayode Tokede

Transcorp Hotels Plc, yesterday announced its financial performance for the third quarter (Q3) ended September of 2023, showing a strong Year-on-Year (YoY) growth on all indices.

The leading hospitality brand of Transcorp Group sustained strong growth, recording N5.55billion profit before tax in Q3 2023, an increase of 69 per cent YoY from N3.29bbillion reported in Q3 2022.

With the N5.55billion PBT in Q3 2023, Transcorp Hotel has surpassed 2022 full year results when it announced N4.53billion PBT from N1.66billion reported in 2021 financial year. 

From the unaudited result and accounts published on the Nigerian Exchange Limited (NGX), the group also sustained growth in profit, gaining about 79per cent to N4.07billion in Q3 2023 from N2.27 billion reported in Q3 2022. 

Key contributing factor to impressive performance in profits include the group’s 31.76per cent YoY growth in revenue to N29.9billion from N22.7 billion the previous year, and it is significantly higher than pre-Covid performance

Revenue per Available Room (REVPAR) grew to N106,244 by the end of September 2023 from N77,428 at the end of September 2022, a 34per cent increase.

Also, Transcorp Hotels “Other operating income” stood at N1.17billion in Q3 2023, representing an increase of 147per cent YoY from N474.51million in Q3 2022, driven by N694.17million net foreign exchange gain in Q3 2023 from N31.11 million loss reported in Q3 2022.

Total assets increased to N123.8billion as of September 30, 2023 from N120.5billion reported in 2022 full financial year.

The results reflect the company’s commitment to delivering exceptional value to its stakeholders and sustaining its growth momentum.

Commenting on the results, Managing Director/CEO of Transcorp Hotels, Dupe Olusola in a statement said, “This consistent financial upswing reinforces our dedication to excellence and resilience in the face of economic challenges. We have remained nimble, adapting quickly to meet the dynamic preferences of our guests”.

She expressed that the company continued to experience strong performance in its International Business Travel segment, as it took advantage of renewed investor confidence in the Nigerian economy as a new government resumed office.

Transcorp Hotels also continues to maintain its strong leisure business, setting the pace with excellence in the delivery of both business and leisure offerings, as the importance of the Bleisure segment expands in the industry.

The stock price of Transcorp Hotels has gained 610.4per cent Year-till-Date (YtD) to N44.4 per share as of October 26, 2023 from N6.25 per share it opened for trading this year.