In 2025, Transcorp Hotels achieved a pretax profit of N32.8 billion, marking a 45.1% increase from the previous year. This growth is drives a 38.36% rise in revenue, reaching N97 billion.
The company’s was performance boosted by the reversal of a financial asset impairment loss. A previous loss of N69.1 million turned into a gain of N16.5 million, alongside reduced finance costs.
As a result of this strong performance, Transcorp Hotels will pay a final dividend of N1.20 per share to shareholders as of December 2025. The payment scheduled for February 27, 2026. Combined with the 10 kobo interim dividend paid in August 2025, total dividends for the year will amount to N1.30 per share.
Key Financial Highlights (FY 2025 vs FY 2024):
- Total Revenue: N97.03 billion (+38.4%)
- Gross Profit: N74.40 billion (+49.7%)
- Profit Before Tax: N32.82 billion (+45.1%)
- Net Income: N21.85 billion (+46.7%)
- Basic Earnings Per Share: N2.14 (up from N1.46)
- Dividends: Final dividend of N1.20 per share, totaling N12.29 billion (up from N0.74 per share in 2024)
Revenue Drivers and Costs
Revenue growth was primarily fueled by room revenue, which rose to N63.1 billion from N45.5 billion in 2024. Food and beverage sales also contributed significantly, increasing to N29 billion from N22.1 billion, while other revenue sources accounted for a smaller share.
The cost of sales increased to N22.6 billion, up from N20.4 billion. After accounting for these costs, gross profit stood at N74.4 billion, reflecting a 49.7% year-on-year increase.
Operating expenses rose to N39.68 billion, compared to N29.03 billion in 2024. The largest contributor was management fees, which amounted to N10.9 billion. Despite these higher expenses, operating profit reached N35.2 billion, a 35.39% increase.
Balance Sheet Overview
Transcorp Hotels’ total assets grew by 13.7%, reaching N159.9 billion compared to N140.6 billion in 2024. The largest asset category was property, plant, and equipment, valued at N124.8 billion. Cash and bank balances also saw significant growth, rising by 97.3% to N16.9 billion.
Total equity increased to N95.2 billion, up from N80.72 billion in 2024. This growth was primarily driven by a 22.6% rise in retained earnings, which reached N77.5 billion.
