The 2020 financial projection for Transcorp Hotels Plc is no longer feasible. This indication emerged as the quoted hospitality company recorded a significant financial drop in revenue, in its first-quarter period for the year.
As COVID-19 continues to ravage different sectors of the economy, including the hospitality sector, Transcorp’s group revenue for the period under review, dropped to N4.17 billion, compared to the N4.18 billion recorded in Q1 2019.
Similarly, its gross profit fell to N3 billion in 2020 Q1, from the N3.10 billion garnered in the corresponding period of last year.
Transcorp’s defense of financial performance and affected projection
According to Transcorp, its 2020 Q1 result was impacted by the lingering coronavirus pandemic.
A statement from the company read partly; “Transcorp Hotel plc started the year 2020 optimistic with detailed plans and budget to surpass the N20bn revenue performance achieved in 2019.
“With the Global Coronavirus Pandemic, the hospitality industry has been negatively impacted.”
“Nigeria has witnessed an increase in confirmed cases which led to the closure of airports and flights and an official lockdown of the FCT issued by the Federal Government to ensure the effective combat of the virus. All of these have negatively impacted the hotel and its business activities in this period.
“The Company anticipates that its future results of operations, including the results for 2020, will be materially impacted by the coronavirus outbreak. However, given the speed and frequency of continuously evolving developments with respect to this pandemic, the Company cannot reasonably estimate the magnitude of the impact on its results and its operations, and, if the outbreak continues on its current trajectory, such impact could grow and become material to its liquidity or financial position.”