Home / Business & Economy / Transcorp Hotels records impressive turnaround in Q3 2021, with a 662% growth in profit
Dupe Olusola, Managing director Transcorp Plc

Transcorp Hotels records impressive turnaround in Q3 2021, with a 662% growth in profit

TRANSCORP Hotels Plc. owner of Transcorp Hilton Abuja, Transcorp Hotels Calabar and Aura by Transcorp Hotels, has announced its unaudited Q3 results showing 115 percent growth in revenue year-on-year (YoY) to N14.6 billion and a gross profit growth of 149 percent to N10.8 billion, leading to a profit before tax of N745 million a 662% improvement on performance recorded at the same period in 2020.

The Group’s Year-on-Year Analysis reveals a revenue of N14.6 billion in Year To Date Sep 2021, compared to N6.8 billion in YTD Sep 2020 (115% growth year-on-year) while its Gross profit is N10.8 billion in YTD Sep 2021, compared to N4.3 billion in YTD Sep 2020 (149% growth year-on-year).

Transcorp Hotels Plc also had operating expenses of N7.9 billion in Sep 2021, compared to N6.0 billion in Sep 2020 (31% growth year-on-year).

However, its  Interest Cost was N3.1 billion in YTD Sep 2021, compared to N4.5 billion in YTD Sep 2020  presenting a 31% decline year-on-year while Profit/(Loss) Before Tax was N745 million in YTD Sep 2021, compared to N(5.6) billion in YTD Sep 2020 (662% improvement year-on-year)

Transcorp Hotels Plc also increased total assets  by 2.18% from N115.3 billion in December 2020 to N112.9 billion in Q3 2021 due to the increase in Trade Receivables and Cash and Cash Equivalents precipitated by the improvement in business activities within the period.

The group’s total liabilities increased by 3.31% from N53.5 billion in December 2020 to N51.8 billion in Q3 2021 due to the increase in trade payables because of improved business activities within the period.

Shareholders Fund: N61.84 billion, a 1.21% year-to-date increase relative to FY 2020’s value at N61.10 billion.

Commenting on the results, Dupe Olusola, the MD/CEO said: “Our performance reflects the strength of our business to withstand external shocks and continue to grow revenue even in tough economic conditions.

“Demand has continued to improve at impressive levels during the year, accelerating in the third quarter to pre-pandemic levels. We ended September with 63 percent occupancy, growing from 28 percent achieved in the same period last year, as we continue to outperform the industry average on several indices.

“We are seeing significant improvement in our corporate and group bookings, as vaccination rates increase, and companies begin to return to full operations.. Domestic leisure demand remains very strong and continues to be responsible for the improvement seen on our revenue and this signifies our nimbleness and strength of purpose to redefine hospitality in Africa.

“Our flagship hotel Transcorp Hilton was named by the World Travel Awards as Africa’s Leading Business Hotel, for seven consecutive years. This is testament to our continued focus on redefining hospitality and providing excellent services to our customers, ensuring that every experience with us is memorable.

“We remain focused on the execution of our growth strategy, leveraging technology and the expertise of our people to deliver best-in-class guest experience across all our assets, properties and touchpoints.

“Recently, we launched Aura by Transcorp Hotels, a digital platform for booking accommodation, food and experiences. Aura caters to the three major things people need when they travel; where to stay, what to eat and things to do to make their travel memorable. This business, which stems from our asset-light strategy offers us a great opportunity for expansion in line with our long-term plans to expand across Africa.

“As the global economy continues to recover from the impact of the COVID-19 pandemic, Transcorp Hotels Plc. will remain a leader in the industry, offering bespoke hospitality services to discerning guests, who live for memorable experiences and excellent service delivery.”

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