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Transcorp Hotels to Pay Dividend Amid 34.5% Drop in Profit

By Dipo Olowookere

Notable Nigerian hospitality company, Transcorp Hotels Plc, has released its financial statements for the period ended December 31, 2017.

In the not-too-impressive results, the firm suffered a drop in its revenue for the 2017 fiscal year, going down by 9.59 percent from N15.3 billion in the 2016 full year to N13.8 billion in the period under review.

Also, the firm’s operating profit went down by 25.68 percent in 2017 from N4.7 billion in 2016 to N3.5 billion last year.

Furthermore, the company’s profit before tax depreciated by 29.70 percent, closing at N3.7 billion in 2017 against N5.2 billion in the corresponding period of 2016.

In addition, the profit after tax in the period under review declined by 34.52 percent, standing at N2.7 billion as at December 31, 2017 compared with N4.1 billion as at December 31, 2016.

However, during the period under review, the total assets of Transcorp Hotels appreciated by 10.67 percent, closing at N100.5 billion as at December 31, 2017 against N90.8 billion as at December 31, 2016.

A look at the company’s fundamental analysis by Business Post showed that Transcorp Hotels’ Basic Earnings Per Share (EPS) stood at N0.35k last year against N0.49k two years ago, while its P.E (x) closed at N21.40k in the period under review compared with N15.41k in 2016.

Furthermore, its Return On Assets (ROA) stood at 2.67 percent in 2017 against 4.51 percent in 2016, while the Return On Equity closed at 4.88 percent last year in contrast to 7.70 percent two years ago.

Meanwhile, the board of Transcorp Hotels has announced the payment of 12.45 kobo per share dividend to its shareholders, while an Annual General Meeting (AGM) has been fixed for March 16, 2018 at Transcorp Hilton Hotel Abuja.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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