Transcorp Hotels saw after-tax profit inch up by just 0.6 per cent year on year in the first quarter amid escalating operating costs, its unaudited accounts published on Tuesday showed.
Cost-to-income ratio jumped to 1.3 from 0.9, eating up a good deal of the revenue of the hospitality division of Transnational Corporation of Nigeria, which expanded operations with a 5,000-seater event centre in Abuja recently.
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The corporate results were for the first full quarter under the leadership of CEO Uzo Oshogwe, who took office in January after giving up the same role at Lagos-based Afriland Properties.
Operating expenditure soared by almost half to N9.1 billion, following spikes in energy costs, management fees as well as repairs & maintenance.
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Among the key factors that left operating profit weaker was a 95.8 per cent plunge in other operating income after Transcorp Hotels incurred N49.1 million in unrealised fx loss in reversal of a gain of N2.9 billion a year ago.
Management fees, representing 1.5 per cent of revenue, payable to US-based Hilton International for hotel management services, advanced to N1.5 billion from N872.7 million.
Revenue added 51.9 per cent as it rose to N21 billion, gaining strength from improvement in both room bookings and food & beverages.
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The CEO said in the earnings release, “Our Q1 2025 results demonstrate the underlying strength of our business and the effectiveness of our strategic focus on driving revenue growth.”
“We recently added Transcorp Centre, a 5,000-capacity event space, to our expanding assets, including the iconic Transcorp Hilton Abuja, as we continue to solidify our position as a leader in the African hospitality landscape,” she went further to say.
Finance costs scaled up to N892.4 billion from N886.4 billion by reason of a surge of 62 per cent in interest on intercompany loan payables.
READ ALSO: Transcorp Power releases unaudited results for the Q1 ended 31 March 2025
Pre-tax profit climbed to N6.2 billion from N6.1 billion, while profit for the period increased to N5.04 billion from N5.02 billion.
On the balance sheet side, total assets, at N152.1 billion, gained 8.1 per cent weight compared to the end of last year.
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