Hotel Transcorp recorded a more than two-fold jump in the bottom line in 2022, details of the audited financial report released on Thursday have shown.
The increase was fueled by higher room revenue, which approached the N20 billion mark.
Transcorp Hotels, the separately listed hospitality arm of the Transnational Corporation of Nigeria (Transcorp), generated N31.4 billion in revenue, the highest level since its inception in 1994. The increase in revenue was 46.8 percent greater than the figure reported a year ago. , marking its second year with profits after the covid lockdown caused the company to make a loss in 2020.
Other income slightly improved by 6.6 percent to N969.2 million on account of the reported net foreign exchange gain where the loss had been reported a year earlier.
Transcorp Hotels said in a different document seen by PREMIUM TIMES that it takes more cost efficiency during the year, helping to ramp up the margin from 7 to 14 percent.
Interest from deposits with the bank more than double the figure for 2021, which raised finance income to N8.7 million.
Operational expenditure rose by 31.8 per cent to N14.6 billion, which was largely strained by repair and maintenance costs and energy expenditure.
“The full return of the International Business Travel segment and the strong leisure segment contributed significantly” to the record revenue, said Managing Director Dupe Olusola.
Pre-tax profit increased by 172.3 percent to N4.5 billion, while profit for the year accelerated to N2.6 billion, an increase of 134.3 percent.
Also read: Transcorp Hotels appoints new non-executive director
Transcorp Hotels obtained shareholder approval last month for the divestment plan, details of which the company has not disclosed.
Transcorp has a 76.2 percent interest in the company and the Ministry of Finance Incorporated, a special division of the Accountant General’s Office, holds 11 percent.
Transcorp Hotels is looking to shareholders to approve a dividend plan of N0.13 per share (total N1.3 billion) at the next AGM scheduled for April 3.
The qualifying date is March 17, while payments are scheduled for April 4.
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