Transcorp Hotels announces 60% drop in PBT

Following a drop in revenue, Transcorp Hotels has reported 60 per cent decline in profit before tax for the half year ended June 30, 2017.
The hospitality company reported N1.09 billion in half year ended June 30, 2017 as against N2.75 billion in half year ended June 30, 2016 while profit after tax closed the period at N757.6 million from N1.89 billion recorded in half year ended June 30,2016.
The unaudited results submitted to The Nigerian Stock Exchange (NSE) revealed that revenue for the period dropped by 18.5 per cent to N6.2 billion compared with N7.6 billion recorded in June 30, 2016.
Its revenue generated from room rent out dropped by 22.7 per cent to N3.8 billion in June 30, 2017 from N4.94 billion in June 30, 2016.
Similarly, revenue generated from Food and beverages dropped by 13 per cent to N1.7 billion as against N1.99 billion recorded in June 30,2016 while shop rental moved to N316 million from N338million in June 30, 2016.
Service charge closed the half year period at N60 million, an increase of 717 per cent from N7.3 million in June 30, 2016.
In addition, Other operating revenue moved to N323.6 million in June 30, 2016 from N281.8 million in June 30, 2017.
Total assets inched up by 2.3 per cent to N92.8 billion as at June 30, 2017 from N90.76 billion reported in 2016.
The share price of Transcorp Hotels has remained flat at N6.87 since the beginning of trading in July 2017.
Transcorp Hotels Plc was incorporated on 12 July 1994 in Nigeria under the Companies and Allied Matters Act as a private limited liability company, and is domiciled in Nigeria. The company is engaged in the hospitality industry; particularly the rendering of hotel services.
The company owns and operates Transcorp Hilton Hotel Abuja. The hotel which is situated in Abuja provides luxury accommodation, exotic cuisines, fully equipped meeting rooms and leisure facilities to business travellers and tourists from all over the world. The company holds 100 per cent equity interest in Transcorp Hotels Calabar Limited and Transcorp Hotels Port Harcourt Limited and also has interests in Transcorp Hotels Ikoyi Limited.
The “Group” consists of Transcorp Hotels Plc and the above named subsidiaries. The company’s registered office is 1 Aguiyi Ironsi Street, Federal Capital Territory, Abuja, Nigeria.