Transcorp Hotels Plc, has reported 662 percent improvement on profit before tax for the third quarter (Q3) endedSeptember 30, 2021.
This was contained in the Company’sresults released on the Nigerian Exchange Limited. Revenue grew by 115 per centto N14.6 billion in Q3, 2021 compared to N6.8 billion in 2020. Grossprofit stood at N10.8 billion in September, 2021, compared to N4.3billion in September 2020, representing an increase of 149 per cent.
Operating expenses amounted to N7.9 billion, an increase of 31 per cent from N6.0 billion in 2020, whileinterest cost declined by 31 per cent to N3.1 billion, as against N4.5 billionachieved in 2020.
Profit before tax rose by 662 per cent to N745 million , compared to loss before tax of N5.6 billion.
Further analysis of the Company financialposition revealed that total assets increased by 2.18 per cent from N115.3billion in December 2020 to N112.9 billion in Q3 2021 due to the increase intrade receivables and cash and cash equivalents precipitated by the improvementin business activities within the period. Also, shareholders fund stoodat N61.84 billion, a 1.21 per cent year-to-date increase relative to full year 2020’s value at N61.10 billion.
Speaking on the results, the managing director/CEO of Transcorp Hotels, Dupe Olusola said, “Our performance reflectsthe strength of our business to withstand external shocks and continue to growrevenue even in tough economic conditions.
“Demand has continued to improve atimpressive levels during the year, accelerating in the third quarter topre-pandemic levels. We ended September with 63 per cent occupancy, growing from28 percent achieved in the same period last year, as we continue to outperformthe industry average on several indices.
“We are seeing significant improvement inour corporate and group bookings, as vaccination rates increase, and companiesbegin to return to full operations. Domestic leisure demand remains very strongand continues to be responsible for the improvement seen on our revenue and thissignifies our nimbleness and strength of purpose to redefine hospitality inAfrica.”
Olushola stated that “We remain focused onthe execution of our growth strategy, leveraging technology and the expertiseof our people to deliver best-in-class guest experience across all our assets,properties and touchpoints.”
According to her, recently, we launchedAura by Transcorp Hotels, a digital platform for booking accommodation, foodand experiences. Aura caters to the three major things people need when they travel;where to stay, what to eat and things to do to make their travel memorable.This business, which stems from our asset-light strategy offers us a greatopportunity for expansion in line with our long-term plans to expand acrossAfrica.
“As the global economy continues torecover from the impact of the COVID-19 pandemic, Transcorp Hotels willremain a leader in the industry, offering bespoke hospitality services todiscerning guests, who live for memorable experiences and excellent servicedelivery.”