Transcorp Hotels Plc has reported a marginal increase in profit before tax to ₦22.5 billion for the period ended September 30, 2026, despite a decline in revenue, as lower finance costs and reduced administrative expenses helped sustain profitability.

The hospitality company, a subsidiary of Transnational Corporation Plc, disclosed the figures in its unaudited financial results, showing that profit before tax rose by approximately one per cent from ₦22.4 billion in the corresponding period of 2025.

Profit after tax increased by five per cent to ₦15.5 billion, compared with ₦14.8 billion recorded a year earlier.

However, revenue declined by three per cent to ₦69.5 billion from ₦71.3 billion in the corresponding period of 2025, reflecting a moderation in the company’s top-line performance.

The results indicate that Transcorp Hotels maintained earnings growth despite generating less revenue, supported partly by reductions in financing and administrative costs.

According to the financial disclosure, net finance cost declined by 35 per cent to ₦1.5 billion from ₦2.3 billion in the previous year.

The reduction provided some relief to earnings during a period of lower revenue.

Administrative expenses also decreased by two per cent to ₦29.3 billion, compared with ₦29.9 billion in the corresponding period of 2025.

Together, the reductions in administrative and net finance costs amounted to approximately ₦1.4 billion, based on the rounded figures reported.

The company attributed the performance to cost optimisation, financial discipline and efforts to manage resources more efficiently.

Although revenue declined, the improvement in profit after tax suggests that the company was able to retain a larger proportion of its income as earnings.

Based on the reported figures, its net profit margin increased from approximately 20.8 per cent in the corresponding period of 2025 to 22.3 per cent in 2026.

The improvement represents an increase of about 1.5 percentage points.

Managing Director and Chief Executive Officer of Transcorp Hotels Plc, Uzoamaka Oshogwe, said the performance reflected the company’s ability to protect profitability despite softer revenue.

“Despite a 3 per cent year-on-year decline in revenue, we grew profit after tax by 5% 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 maintained that the company’s focus remained on strengthening operational performance while pursuing investment opportunities across its hospitality, events and lifestyle businesses.

She said capital allocation decisions were being assessed against financial performance and expected returns.

According to her, the company intends to sustain its profitability while expanding engagement with guests and corporate clients.

“As we close the year, our priorities remain clear: sustain margin growth, deepen guest and client engagement, and position the business to maximise returns as demand strengthens. We remain focused on profitable growth, disciplined execution, and long-term value creation,” she added.

The company’s emphasis on profitability comes amid the need for hospitality operators to balance operating costs, capital expenditure and customer demand.

Transcorp Hotels also reported a significant expansion in its balance sheet during the period.

Total assets increased by 29 per cent to ₦206.8 billion from ₦159.9 billion as of December 2025.

This represents an increase of approximately ₦46.9 billion over the nine-month period.

Shareholders’ funds stood at ₦97.5 billion at the end of September 2026.

The company said the increase in assets reflected the expansion of its financial position and its continuing investment in hospitality-related activities.

Chief Finance Officer of Transcorp Hotels Plc, Oluwatobiloba Ojediran, attributed the improvement in profitability partly to the reduction in finance costs and the containment of administrative expenditure.

She said net finance cost represented approximately two per cent of revenue during the period, compared with more than three per cent in the corresponding period of 2025.

The reduction indicates that financing expenses accounted for a smaller share of the company’s income.

Ojediran also highlighted the growth in total assets and shareholders’ funds, saying the company remained focused on maintaining an appropriate funding structure.

According to her, Transcorp Hotels is managing its liabilities and financing costs while assessing future investments against expected returns.

She said the objective was to support business expansion without placing excessive pressure on the company’s financial position.

Transcorp Hotels continues to operate in Nigeria’s hospitality and events market, with Transcorp Hilton Abuja serving business travellers, government-related visitors, conference participants and leisure guests.

The company is also positioning its events infrastructure as part of its wider business strategy.

Its Transcorp Centre, a 5,000-seat events and conference venue, is intended to support corporate gatherings, exhibitions, cultural programmes and other large-scale activities in Abuja.

The company said it remained committed to developing its hospitality and lifestyle portfolio while pursuing opportunities capable of generating sustainable returns.

The results suggest that cost management has played an important role in maintaining profitability during a period of weaker revenue.

Nevertheless, sustaining earnings growth over the longer term will also depend on the company’s ability to improve revenue generation, maintain operating efficiency and secure returns from its expanding asset base.

For the period under review, Transcorp Hotels recorded higher profits and a stronger net margin despite the decline in turnover, underscoring the contribution of lower expenses to its financial performance.