Transcorp Hotels posted a 31.2 per cent increase in net profit to N8.7 billion for the first six months of the year, compared to the same period of 2024, according to its unaudited results issued on Friday.
The performance derived strength from revenue, which improved by 60.1 per cent to N47.6 billion on the back of a sharp jump in income from room bookings as well as from food and beverages.
Room bookings accounted for 65.9 per cent of turnover and grew 59.3 per cent, while food and beverages contributed 28.7 per cent, growing by 57.8 per cent.
Other income dropped to N389.3 million from N4.2 billion as net unrealised foreign exchange gain, which drove growth a year ago, fell by as much 98.9 per cent this time around.
Operating expenses for the hospitality business of Transnational Corporation Plc surged by 71.9 per cent to N22.8 billion, driven by management fees and employee costs.
Management fees, which stood at N5.2 billion during the period, represent 1.5 per cent of revenue payable to US-based Hilton International for hotel management services.
Profit before tax advanced by 16.7 per cent to N12.2 billion, while profit after tax rose to N8.7 billion from N6.6 billion.
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Meanwhile, revenue for the second quarter ended 30 June 2025 rose to N26.6 billion from N15.9 billion a year ago. Profit before tax for that period climbed to N6.1 billion from N4.4 billion, while profit after tax jumped to N3.6 billion from N1.6 billion.
In April, the company announced that it had completed Transcorp Centre, an ultra-modern 5,000-capacity event centre in Abuja, designed to cater to high-profile conferences, concerts, corporate events, exhibitions and social gatherings.
The total assets of Transcorp Hotels stood at N153.5 billion as of June 2025, compared to N140.7 billion as of the end of last year. The stock has yielded 22.8 per cent so far this year.
