Transcorp Hotels Plc has reported yet another strong financial showing, posting a pre-tax profit of N6.07 billion for the second quarter of 2025 — a 38.34% increase from the N4.3 billion recorded in Q2 2024. This performance underscores the company’s resilience and strategic agility within Nigeria’s evolving hospitality landscape.
The group’s pre-tax profit for the first half of 2025 surged to N12.2 billion, representing a 16.7% increase from N10.4 billion in the same period last year.
Revenue Growth Drives Bottom Line
The performance was buoyed by strong revenue growth, as Q2 2025 revenue hit N26.5 billion, up 67.2% year-on-year. This propelled the half-year revenue to N47.5 billion, marking a 60% increase over the previous year.
- Rooms revenue led the pack with N31.3 billion, reflecting continued high demand for accommodation.
- Food and beverage sales contributed N13.6 billion, with other services completing the balance.
Operational Cost Management and Profitability
Despite the expansion in revenue, Transcorp Hotels experienced a 33.95% rise in cost of sales to N6.1 billion in Q2. Still, gross profit surged by 80.85% to N20.3 billion, compared to N11.2 billion in Q2 2024.
The company also saw a steep rise in operating expenses, primarily driven by staff costs and management fees, which rose by 91.33% to N13.7 billion. Nonetheless, operating profit rose to N6.8 billion, a 31.24% improvement from the previous year.
Improved Financial Efficiency and Asset Growth
- Finance costs dropped slightly by 2.57% to N951.7 million, while finance income rose 18.53% to N172.8 million, boosting net financial performance.
- Total assets grew to N153.4 billion as of Q2 2025, up 9.07% from N140.6 billion in December 2024.
- Retained earnings increased by 3.37% to N65.3 billion, reflecting stronger reserves.
Key Financial Metrics (Q2 2025 vs Q2 2024)
| Metric | Q2 2025 | YoY Change |
|---|---|---|
| Revenue | N26.5 billion | +67.20% |
| Cost of Sales | N6.1 billion | +33.95% |
| Gross Profit | N20.3 billion | +80.85% |
| Operating Expenses | N13.7 billion | +91.33% |
| Operating Profit | N6.8 billion | +31.24% |
| Pre-tax Profit | N6.07 billion | +38.34% |
| Total Assets | N153.4 billion | +9.07% |
Market Performance and Outlook
As of July 24, 2025, Transcorp Hotels’ share price stood at N142.40, delivering a 22.8% year-to-date gain, signaling continued investor confidence in the company’s performance and strategic outlook.
With sustained revenue growth and disciplined cost management, Transcorp Hotels Plc appears well-positioned to maintain its upward trajectory in the second half of 2025.