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Business News of Saturday, 4 March 2023


Transcorp Hotels doubles annual profit as room revenue jumps

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Transcorp Hotels recorded more than a twofold leap in its bottom line in 2022, details of its audited financial report released on Thursday have shown.

The increase was boosted by a higher room revenue, which rose close to the N20 billion mark.

Transcorp Hotels, the separately listed hospitality arm of Transnational Corporation of Nigeria (Transcorp), grossed N31.4 billion in revenue, the peak level ever since its inception in 1994. The revenue increase is 46.8 per cent bigger than the figure reported a year ago, marking the second straight year of profitability after covid lockdowns tipped the company into loss in 2020.

Other income slightly improved by 6.6 per cent to N969.2 million on account of net foreign exchange gain being reported where a loss had been reported one year prior.

Transcorp Hotels said in a different document seen by PREMIUM TIMES it took cost efficiency more seriously during the year, helping ramp up margin from 7 to 14 per cent.

Interest from deposits with banks was more than twice the figure for 2021, which lifted finance income to N8.7 million.

Operating expenditures soared 31.8 per cent to N14.6 billion, largely strained by repairs and maintenance costs and spending on energy.

“The full-fledged return of the International Business Travel segment and the bolstering leisure segment contributed immensely” to the record revenue, Managing Director Dupe Olusola said.

Pre-tax profit expanded by 172.3 per cent to N4.5 billion, while profit for the year accelerated to N2.6 billion, increasing 134.3 per cent.

Transcorp Hotels got shareholders’ nod last month for a divestment plan, the details of which the company is yet to reveal.

Transcorp holds a 76.2 per cent interest in the company and the Ministry of Finance Incorporated, a special division of the Office of the Accountant General, holds 11 per cent.

Transcorp Hotels is looking to shareholders to endorse its dividend plan of N0.13 per share (N1.3 billion in total) at the next AGM scheduled for 3 April.

The qualification date is 17 March, while the payment is arranged for 4 April.