Transcorp Hotels Hits Highest Value Ever in Stock Market
Transcorp Hotels Plc has continued to blaze through strings of 52-week highs as investors continue to increase bets on the hospitality industry-linked stock. The hotelier stock attracts investors amidst capacity expansion and hope for a stronger earnings performance in the first half of 2025.
The company share price climbed by more than 6% to N163 week on week, the highest value it has reached ever since it became listed in the Nigerian Exchange, from N153.5 at the beginning of the week.
The one-day rally shot Transcorp Hotels Plc.’s market value to N1.669 trillion, according to data from the Nigerian Exchange. The rally that shifted Transcorp Hotels to its highest valuation in the last 52 weeks was driven by sentiment while investors anticipate that strong economic recovery will rub off on the company’s earnings in the second quarter of 2025.
Uzo Oshogwe, Managing Director, said, “Our Q1 2025 results demonstrate the underlying strength of our business and the effectiveness of our strategic focus on driving revenue growth. The significant increase in revenue and the impressive profit margin growth are clear indicators of the hard work and dedication of our team.
“We recently added Transcorp Centre, a 5,000-capacity event space, to our expanding assets, including the iconic Transcorp Hilton Abuja, as we continue to solidify our position as a leader in the African hospitality landscape.”
Q1-2025 Earnings
Transcorp Hotels Plc grew profit by about 0.6% year on year in the first quarter of 2025, its unaudited financial statement submitted on the Nigerian Exchange revealed. Details from the results showed that profit rose slightly by about 0.6% in 12 months to close at N5.046 billion compared with N5.016 billion in the comparable period in Q1-2024.
The hospitality company reported a spike in revenue, up by 52.2% year on year from N13.80 billion in Q1-2024 to N21.005 billion at the end of Q1-2025. The top line was boosted by fresh investment in a new event centre.
Within 12 months, the Hotels costs of sales grew by 32.25% to close at N5.166 billion in Q1-2025 from N3.906 billion in the comparable period. Hence, gross profit rose by 29.38% year on year to N15.839 billion in Q1-2025, from N9.923 billion in the equivalent period last year.
This year, Transcorp Hotels earned less from other operating income, driven by a sharp drop in its unrealised foreign exchange gain—which turned negative from N2.882 billion in Q1 2024. Transcorp Hotels also saw a sharp drop in net gain realised from asset and equipment disposal.
This caused the hospitality company’s operating income to fall slightly year on year to N6.897 billion in Q1-2025 from N6.909 billion in the equivalent period in 2024. With mild ease on net finance costs pressure, pretax profit climbed to N6.156 billion in Q1, from N6.085 billion in the comparable period last year.
But tax expenses also climbed to N1.110 billion in Q1 from N1.068 billion, leaving net income at N5.046 billion, up by 0.5980% from N5.016 billion 12 months ago. #Transcorp Hotels Hits Highest Value Ever in Stock Market Oil Prices Dip amidst Excess Supply Concerns
