Transcorp Plc: Decline in food and beverage, others depletes revenue

Transcorp Plc reported revenue of N54.38 billion in 2020 9M, compared to N58.28 billion in the corresponding period of 2019.

Key highlights for 2020 9M

• Revenue decreased to N54.38 billion, -6.69% YoY
• Revenue from rooms decreased to N4.32 billion, -53.08% YoY
• Revenue from food and beverage decreased to N1.64 billion, -60.77% YoY
• Revenue from shop rental decreased to N511.13 million, -14.14.9% YoY.
• Revenue from service charge decreased to N54.75 million, -52.63% YoY.
• Revenue from other operating revenue decreased to N265.42 million, -53.96%
• Revenue from capacity charge increased to N17.72 billion +8.65% YoY
• Revenue from energy sent out increased to N29.84 billion, +82.93% YoY.
• Revenue from ancillary services decreased to N23.4 million, -60.41% YoY.
• Foreign exchange loss on financing activities increased to 1.84 billion, +316.12% YoY.
• Finance cost increased to N11.68 billion, +14.86% YoY.
• Pre-tax profits decreased to N2.02 billion, -72.55% YoY.
• Earnings Per Share decreased to 3.4 kobo, -154.84% YoY.

Bottom Line

Transcorp Plc recorded decreased revenues from six of its revenue-generating units. Companies, especially hoteliers have generally recorded decreased revenue in the last three quarters, mostly due to COVID-19.

Pre-tax profits also declined in the period under consideration due to increased foreign exchange loss on financing activities and finance costs.