LatestCompanies & Deals

Transcorp Hotels 9M Profit Up 4.8% as Q3 Profit Falls 19%

Lagos, 19 October 2026 · Gopexly Desk · Published 19 October 2026 at 13:00 · 6 min read

Transcorp Hotels Plc, owner of the Transcorp Hilton Abuja, grew profit after tax by 4.8% to ₦15.54 billion in the nine months to September 2026, even though revenue fell 2.6% to ₦69.46 billion, its unaudited results filed on the Nigerian Exchange (NGX) show. The third quarter alone was weaker: profit after tax fell 18.6% to ₦5.00 billion as operating expenses and finance costs rose. Borrowings also jumped more than fivefold since December. It is one of the first NGX companies to report Q3 2026 results.

Nine months at a glance

Nine months to 30 September	2026	2025	Change
Revenue	₦69.46bn	₦71.30bn	-2.6%
Gross profit	₦53.32bn	₦54.05bn	-1.4%
Operating profit	₦24.36bn	₦24.71bn	-1.4%
Finance costs	₦5.91bn	₦2.80bn	More than doubled
Finance income	₦4.46bn	₦0.52bn	Up about 8.6 times
Profit before tax	₦22.53bn	₦22.40bn	+0.55%
Profit after tax	₦15.54bn	₦14.82bn	+4.8%
Earnings per share	152 kobo	145 kobo	+4.8%

Profit rose for two reasons that have little to do with hotel rooms. Finance income jumped, mostly from ₦4.19 billion of interest on loans to related companies, up from ₦502.58 million a year earlier. Income tax also fell to ₦6.98 billion from ₦7.58 billion. Without those, the core business went slightly backwards.

The third quarter alone

Three months to 30 September	Q3 2026	Q3 2025	Change
Revenue	₦25.04bn	₦24.37bn	+2.7%
Gross profit	₦19.34bn	₦18.48bn	+4.6%
Operating expenses	₦9.97bn	₦7.67bn	+30%
Operating profit	₦9.56bn	₦11.00bn	-13.1%
Finance costs	₦2.85bn	₦0.96bn	Almost tripled
Profit before tax	₦8.83bn	₦10.18bn	-13.2%
Profit after tax	₦5.00bn	₦6.14bn	-18.6%

Revenue actually grew in the quarter. The problem was costs: operating expenses rose 30%, and finance costs nearly tripled as new debt started to cost money. BusinessDay also noted that unrealised foreign exchange losses for the quarter rose to ₦349.16 million from ₦61.99 million.

Where the money comes from

Rooms remain the core of the business. Room revenue was ₦46.29 billion for the nine months, about two-thirds of the total, against ₦46.65 billion a year earlier. Food and beverage fell 8.3% to ₦19.27 billion. Event hall rentals slipped to ₦981.52 million from ₦1.15 billion, even with the 5,000-seat Transcorp Centre that opened in 2025.

Energy costs fell to ₦3.57 billion from ₦3.87 billion over the nine months, while depreciation rose to ₦3.45 billion from ₦2.41 billion.

Borrowing jumps fivefold

The biggest change is on the balance sheet. Interest-bearing borrowings rose to ₦54.96 billion at 30 September from ₦10.52 billion at the end of 2025, an increase of about 422%, BusinessDay reported. A new ₦42.92 billion loan, carried at ₦49.19 billion at the reporting date, costs 22% a year and matures on 17 March 2031. An existing ₦12.75 billion loan carries 10% interest and matures on 31 May 2029.

At the same time, trade and other receivables rose to ₦50.53 billion from ₦11.00 billion. Total assets grew to ₦206.82 billion and total liabilities to ₦109.27 billion, while shareholders' equity edged up to ₦97.55 billion. The reports we read do not say which related companies received the intercompany loans; investors may want to check the notes to the accounts.

Cash flow turns negative

Net cash from operations was an outflow of ₦15.93 billion, compared with an inflow of ₦18.82 billion a year earlier. The company spent ₦6.28 billion on property and equipment and paid ₦13.32 billion in dividends, which covered the 2025 final dividend of ₦1.20 per share and a 2026 interim dividend of 10 kobo. New borrowing of ₦44.48 billion, less ₦3.43 billion of repayments, filled the gap.

Cash ended September at ₦20.34 billion. The sources differ slightly on the change: BusinessDay says cash rose by ₦5.17 billion, while The Sun gives an opening balance of ₦15.55 billion, which implies a ₦4.79 billion rise. The difference may come from exchange-rate effects on cash; we could not confirm it from the reports.

The share price

Transcorp Hotels (TRANSCOHOT) closed at ₦290.50 on Friday, 16 October, unchanged on the day, according to NGX price data. BusinessDay says the stock started 2026 at ₦170.90, a gain of about 70% so far this year. By our calculation, nine-month earnings of ₦1.52 per share annualise to about ₦2.03, which puts the stock at roughly 143 times annualised earnings. That implies the market expects much stronger profits.

Q3 earnings season has started

Third-quarter unaudited results are due by 30 October 2026. FCMB Group says its results will come on or before 29 December because of an interim audit, and Sterling Financial Holdings will report on 28 October. Proshare says Q3 earnings will help set the market's direction this week, after the All-Share Index fell 0.33% last week.

What this means for investors

Look past the headline. Nine-month profit grew, but Q3 operating profit fell 13.1%. Interest income from related-party loans did much of the work.
Watch the cost of debt. A 22% loan will keep finance costs high in the fourth quarter and beyond.
Check cash, not just profit. Negative operating cash flow and a fivefold rise in receivables are worth following in the full-year accounts.
Valuation risk. After a 70% rise this year, the shares trade on a high multiple of earnings, so disappointing results can move the price sharply.
Stay alert. You can follow TRANSCOHOT and set a price alert on its Gopexly stock page.

This is for information only and is not investment advice.

FAQ

Did Transcorp Hotels make a profit in Q3 2026?

Yes. Profit after tax for the quarter was ₦5.00 billion, down 18.6% from ₦6.14 billion in Q3 2025. For the nine months, profit after tax rose 4.8% to ₦15.54 billion.

What dividends has Transcorp Hotels paid in 2026?

It paid ₦13.32 billion in the nine months, covering the 2025 final dividend of ₦1.20 per share and a 2026 interim dividend of 10 kobo per share.

When are Q3 2026 results due on the NGX?

Companies filing unaudited third-quarter accounts must publish them within 30 days of the quarter's end, which is 30 October 2026. Some firms, such as FCMB Group, have announced later dates.

Sources

This note is for education. It is not a recommendation to buy or sell any share.

Tags: Earnings, Transcorp Hotels, Hospitality, NGX, Q3 2026