Shareholders of Transcorp Hotels Plc, a subsidiary of Transcorp Group, yesterday approved a ₦7.57 billion dividend payout for the 2024 fiscal year. The approval came during the company’s 11th Annual General Meeting (AGM).
The company’s shares on Thursday witnessed a surge in its share price, climbing by 7.13 per cent to close at ₦145 per share at the close of trading on the Nigerian Exchange (NGX).
This gain followed the company’s shareholders approved ₦7.57 billion dividend payout for the 2024 fiscal year.
The approved dividend payout, which contributed to the heightened investor confidence, amounted to a final dividend of 64 kobo per share, following an interim dividend of 10 kobo per share paid earlier in the year, reflecting the company’s strong financial performance and commitment to delivering shareholder value.
The AGM also provided shareholders with a comprehensive overview of Transcorp Hotels Plc robust financial results for 2024. The company reported revenue of N70.13 billion, a 69per cent increase over the N41.46 billion recorded in 2023. Profit Before Tax (PBT) soared by 138per cent, reaching N22.61 billion, further underscoring the company’s strong financial position.
The company’s stock price surged by 65per cent in 2024, closing the year at ₦116 per share. The price jump positions it as one of the most attractive stocks on the Nigerian Stock Exchange (NGX), with the latest gain further reinforcing this.
Chairman, Transcorp Hotels Plc Board of Directors Emmanuel Nnorom attributed the growth to strategic pricing models, effective cost management, and an unwavering commitment to enhancing guest experiences.
“Our performance in 2024 has been nothing short of stellar. The company’s ability to adapt and capitalize on market opportunities, even amidst persistent inflation and volatile exchange rates, speaks volumes about the strength of our operational strategies.”
Managing Director/CEO Uzoamaka Oshogwe said revenue growth was fueled by sustained demand in international and corporate travel, a strong rebound in the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector, and dynamic performance in the leisure market.
“This significant growth is particularly commendable given the persistent macroeconomic headwinds,” Oshogwe said.
“Our ability to navigate these challenges and achieve such robust results underscores the effectiveness of our business model and strategic approach.”
The Board of Transcorp Hotels had assured its shareholders of continued improvements in dividend payouts.
Nnorom expressed confidence in the company’s ability to sustain its impressive financial performance.
He stated that for the 2024 financial year, Transcorp Hotels Plc paid an interim dividend of 10 kobo and subsequently approved a final dividend of 64 kobo, bringing the total payout to 74 kobo per share.
This marks a significant increase from the 20 kobo paid in 2023, reflecting a 270 percent growth. Mr. Nnorom assured shareholders that the group, including Transcorp Hotels, Transcorp Power, and Transcorp Plc, consistently returns dividends to its investors.
“Transcorp Hotels Plc has demonstrated resilience in navigating economic challenges such as inflation and currency fluctuations. The company recorded a profit before tax of N22.61 billion, representing a 138 percent year-on-year increase,” he said.
Additionally, its stock price saw a remarkable 65 percent rise, closing at ₦116 on December 31, 2024, positioning the company as one of the most attractive stocks on the Nigerian Stock Exchange (NGX).
Mr. Nnorom assured shareholders that the company would sustain its strong performance while expanding investments across various sectors. Among its notable projects is a newly opened 5,000-seater capacity event center, the largest in Nigeria, which is expected to generate additional revenue through venue rentals, catering, and accommodation services.
He also mentioned plans to expand the Transcorp Hotel in Lagos and add more rooms to the Abuja property, which currently operates with 670 rooms and maintains an average occupancy rate of 84 per cent annually.
Nnorom also spoke about the company’s strategy of prioritizing workforce development by equipping employees with necessary skills and tools to thrive in an increasingly competitive industry. Investments in digital transformation have also enhanced service delivery, allowing Transcorp Hotels Plc to offer personalized and seamless guest experiences.
The company is adopting advanced personalization strategies, leveraging artificial intelligence (AI) and data analytics to tailor guest experiences. Industry research indicates that such initiatives can improve guest satisfaction by 36 percent and significantly enhance customer loyalty. By implementing these strategies, Transcorp Hotels Plc aims to deepen guest engagement and encourage repeat visits.
Sustainability Nnorom added remains a focal point in the company’s operations, aligning with global trends favoring environmentally responsible practices.
Quoting a 2024 survey by Booking.com, which says over 78 per cent of global travelers prefer accommodations that actively embrace sustainability. Transcorp Hotels Chairman in response said: “Transcorp Hotels Plc has integrated renewable energy solutions, including solar power and energy-efficient systems, reducing its carbon footprint by an estimated 25 per cent.
“The company has also adopted regenerative practices such as supporting local ecosystems and sourcing organic, locally grown produce to enhance environmental stewardship.”
Credit: thenationonlineng.net
