Transcorp Hotels Plc reported that profit after tax rose to N15.54 billion for the nine months ended September 2026, up from N14.82 billion in the same period of 2025, according to the company's unaudited financial statements. However, revenue fell 2.6 percent to N69.46 billion from N71.30 billion. The improvement in profit came from lower operating costs and higher finance income, even as borrowing costs more than doubled.
The company's third quarter showed signs of strain. Profit after tax fell 18.6 percent to N5.00 billion in the three months ended September 2026 compared with N6.14 billion a year earlier, despite revenue rising 2.7 percent to N25.04 billion. Operating expenses jumped 30 percent to N9.97 billion, while finance costs nearly tripled to N2.85 billion from N957.69 million.
Transcorp Hotels' borrowings surged dramatically, rising to N54.96 billion as of September 30, 2026, from N10.52 billion at the end of December 2025, a 422 percent increase. The company took on a N42.92 billion loan carrying a 22 percent interest rate and maturing in March 2031, alongside an existing N12.75 billion loan at 10 percent interest. Finance costs for the nine months totalled N5.91 billion, up from N2.80 billion a year earlier.
Operating cash flow turned negative, with the company using N15.93 billion in operating activities during the nine months, reversing from a positive N18.82 billion in the prior year period. Total assets expanded to N206.82 billion from N159.91 billion at the end of 2025, while total liabilities increased to N109.27 billion from N64.68 billion. The company's share price closed at N290.50 on the Nigerian Exchange, up 70 percent since the start of the year.