Stock Market Updates

Transcorp Hotels Plc Reports 127% Surge in Q2 2025 Profit, Revenue Hits N26.5 Billion

Published by
Jeremiah Ayegbusi

Transcorp Hotels Plc has reported a post-tax profit of ₦3.63 billion for the quarter ended June 30, 2025, representing an impressive 127.2% year-on-year (YoY) growth from ₦1.6 billion recorded in the same period last year.

This strong quarterly result lifted the company’s post-tax profit for the first half of the year to ₦8.68 billion, up 31.2% from ₦6.62 billion recorded in H1 2024.

The company’s performance continues to benefit from robust top-line growth. In Q2 2025, revenue surged to ₦26.57 billion, reflecting a 67.2% YoY increase. For the half-year period, revenue stood at ₦47.57 billion, up 60% from the same period in 2024. A breakdown of revenue shows that room bookings remained the primary driver, followed by food and beverage sales.

Importantly, revenue growth outpaced the cost of sales, which rose 34% YoY to ₦6.19 billion in Q2 2025. This widened gross profit, which jumped 80.9% to ₦20.37 billion.

Finance costs moderated slightly, falling 2.6% YoY to ₦951.75 million. However, operating income fell sharply by 77.6% to ₦259 million in Q2 2025, largely due to a significant decline in unrealized foreign exchange gains, from ₦3.86 billion in Q2 2024 to just ₦41.31 million in Q2 2025.

Meanwhile, operating expenses rose steeply by 91.4% to ₦13.78 billion, with advertising and employee costs among the biggest drivers. Despite the cost pressures, operating profit still climbed 31.2% YoY to ₦6.85 billion.

On the balance sheet side, total assets stood at ₦153.46 billion as of June 2025, representing a 9.0% increase over the December 2024 figure.

Jeremiah Ayegbusi

Jeremiah Ayegbusi is an economist and former Academic Officer of the Nigerian Economic Students Association, Redeemer's University Chapter (NESARUN). He analyzes economic news and conducts research for long-form analysis, leveraging his strong academic foundation and passion for insights.

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