Transcorp Hotels posted a full-year pretax profit of N32.8 billion in 2025, up 45.1%, driven mostly by strong revenue, which grew 38.36% to N97 billion.
Reflecting this strong performance, the company plans to disburse a final dividend of N1.20 per ordinary share for the year ended December 2025, payable to shareholders on February 27, 2026.
Combined with the 10 kobo interim dividend paid in August 2025, total dividends for the year amount to N1.30 per share.
Key Financial Highlights (FY 2025 vs FY 2024):
- Total Revenue: N97.03 billion, up 38.4%
- Gross Profit: N74.40 billion, up 49.7%
- Profit Before Tax: N32.82 billion, up 45.1%
- Net Income: N21.85 billion, up 46.7%
- Basic Earnings Per Share: N2.14, up from N1.46
Driving the numbers
The company’s final dividend of N1.20 per share translates to a total payout of N12.29 billion, based on 10.2 billion outstanding units held by shareholders on the Nigerian Exchange.
- For the full year, total dividend stands at N1.30 per share, which includes an interim dividend of 10 kobo paid in August 2025, marking a significant increase from the total dividend of N0.74 per share paid in 2024.
At the current market price of N170.9, the final dividend represents a yield of 0.70%, compared with 0.37% for the 2024 final dividend, mirroring the company’s strong financial performance.
According to the FY2025 financial statements, revenue growth—the main driver of the company’s financial performance—was largely supported by room revenue, which rose to N63.1 billion from N45.5 billion the previous year.
- This was followed by food and beverage sales, which brought in N29 billion, up from N22.1 billion, while other revenue sources accounted for a smaller share.
As expected, the cost of sales increased to N22.6 billion from N20.4 billion.
- After accounting for these costs, gross profit stood at N74.4 billion, up 49.7% year-on-year.
Operating expenses also grew, rising to N39.68 billion from N29.03 billion in 2024, with management fees of N10.9 billion representing the largest portion.
- Despite this, operating profit stood at N35.2 billion, up 35.39%.
On the balance sheet, Transcorp Hotels’ total assets expanded to N159.9 billion, a 13.7% increase from N140.6 billion in 2024.
The largest portion of assets was in property, plant, and equipment, totaling N124.8 billion, followed by cash and bank balances of N16.9 billion, a 97.3% year-on-year increase.
Total equity stood at N95.2 billion, up from N80.72 billion in 2024, driven mostly by a rise in retained earnings to N77.5 billion, up 22.60%
Market reaction
As of the trading day ended 2nd February 2026, the market has yet to react to the company’s results, which were released on 30th January 2025.
The stock slipped 2.9% in December 2025 and is currently trading at N170.9 per share. However, a positive market reaction is expected.
