Transcorp Hotels Plc increased its profit after tax by 5 percent to N15.5 billion in the third quarter of 2026, the company said in unaudited financial results released on Monday, even though revenue dropped 3 percent to N69.5 billion for the quarter ended September 30 compared with N71.3 billion a year earlier. The hospitality subsidiary of listed conglomerate Transnational Corporation Plc, which operates Transcorp Hilton Abuja, achieved the profit growth by cutting financing costs and administrative expenses, according to the company's results. Profit before tax edged up just 1 percent to N22.5 billion from N22.4 billion in the same period last year.
Lower financing costs drove much of the improvement. Net finance costs fell 35 percent to N1.5 billion from N2.3 billion a year earlier, while administrative expenses declined 2 percent to N29.3 billion from N29.9 billion, the company said. The combination allowed Transcorp Hotels to expand its net profit margin to 22.3 percent, meaning it retained about 22 kobo in profit after tax for every naira of revenue generated during the quarter, according to the company's figures. Net finance costs accounted for roughly 2 percent of revenue in the third quarter, down from more than 3 percent a year earlier.
Uzoamaka Oshogwe, managing director and chief executive officer, said the company was focused on protecting margins and directing capital towards opportunities with stronger potential returns. "Despite a 3 percent year-on-year decline in revenue, we grew profit after tax by 5 percent and expanded our net profit margin to 22.3 percent," she said in the results. The company said it was deploying capital across its hospitality, events, and lifestyle businesses, with investments subject to financial and return benchmarks. Its portfolio includes Transcorp Hilton Abuja and Transcorp Centre, a 5,000-seat event and conference venue in Abuja.
The company's balance sheet expanded significantly during the period, with total assets rising 29 percent to N206.8 billion from N159.9 billion at the end of December 2025. Shareholders' funds stood at N97.5 billion, the company said. Oluwatobiloba Ojediran, chief financial officer, attributed the earnings improvement to the reduction in finance costs and containment of administrative expenses, saying this improved the quality of the company's earnings. However, revenue weakness suggests that sustaining profit growth will depend on the company's ability to strengthen income generation while maintaining cost efficiencies, according to the results.
For investors and savers, the results show how cost management can support returns even when revenues come under pressure, though the revenue decline raises questions about whether the hospitality company can rebuild top-line growth.