WED JULY 22 2026-theGBJournal| Transcorp Hotels Plc grew second-quarter profit despite a decline in revenue, as tighter cost controls and improved operating efficiency cushioned the impact of softer demand in its international business segment.
The hospitality group on Wednesday reported a 12 per cent increase in profit before tax to ₦13.7 billion for the three months ended June 30, from ₦12.2 billion a year earlier, while profit after tax rose 21 per cent to ₦10.5 billion from ₦8.7 billion.
Revenue, however, slipped 5.3 per cent to ₦44.4 billion, compared with ₦46.9 billion in the corresponding period of 2025.
The stronger earnings performance was underpinned by disciplined cost management, with the company’s operating expense margin improving by three percentage points, highlighting gains in operational efficiency despite a more challenging trading environment.
Managing Director and Chief Executive Officer, Uzoamaka Oshogwe, said the results reflected the resilience of the business and the successful execution of its strategy amid difficult market conditions.
“While market conditions remained challenging, we continued to deliver strong profitability by staying focused on operational excellence, commercial agility and creating exceptional experiences for our guests,” she said, adding that the company would continue investing strategically to strengthen its market position and create long-term shareholder value.
Chief Finance Officer Oluwatobiloba Ojediran said prudent cost management, revenue optimisation and operational execution enabled the company to expand profitability despite lower turnover.
The results suggest that Transcorp Hotels has prioritised margin preservation over top-line growth, a strategy that helped offset weaker demand in its international business operations.
The improvement in operating expense margin indicates that the company extracted greater efficiency from its operations, allowing earnings to outpace revenue performance.
Beyond its financial results, the company continued to expand the commercial appeal of its hospitality assets.
Transcorp Hilton Abuja remained its flagship property, while Transcorp Centre, one of West Africa’s largest purpose-built conference and event venues, continued to attract major corporate, business and social events, reinforcing its position as a key contributor to Nigeria’s meetings, incentives, conferences and exhibitions (MICE) industry.
The latest performance extends Transcorp Hotels’ track record of resilient earnings growth, even as Nigeria’s hospitality sector contends with uneven corporate travel demand and a challenging operating environment.
The company’s ability to improve profitability despite lower revenue underscores the growing importance of cost efficiency and operational discipline in sustaining shareholder returns.
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