Dissecting the Financial Results of Companies in Nigeria's Hospitality Sector - TOURIST

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Sunday, May 02, 2021   /06:00 AM  / By Proshare Research / Header Image Credit: EcoGraphics


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Tourist Company of Nigeria Plc

 

Revenue

Tourist Company of Nigeria recorded its lowest revenue in four years in 2020. The drop-off in revenue was attributed to the impact of the coronavirus pandemic on operations. The company's revenue slumped by -64.31% to N1.312bn in 2020 from N3.67bn in 2019 (see Chart 32).


Chart 32Tourist Plc Revenue (N'bn)

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Source: TCN Plc Unaudited Financial Statement for FYE 2020, Proshare Research


A breakdown of its revenue components reveals that the hospitality sector contributed N785m (59.79%) in 2020 while its gaming segment contributed N528m (40.21%). Both segments contribution to the revenue declined in 2020; gaming -58.1%, hospitality -67.35% (see Table 10).


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Table 10: Breakdown of Tourist Revenue Sources

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PAT

TCN Plc saw an increase in its loss in 2020 made worse by the coronavirus pandemic. The loss incurred rose from N1.21bn in 2019 to N6.53bn in 2020 (see Chart 33).

 

Chart 33: Tourist Plc PAT (N'bn)          

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Source: TCN Plc Unaudited Financial Statement for FYE 2020, Proshare Research


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Debt-to-Equity Ratio 

TCN saw a rise in the business's debt-to-equity ratio to 554.71% in 2020 from 184.27% in 2019. This meant that TCN was overleveraged. The significant increase was associated with a sharp rise in its borrowings by +24.71% and a fall in its equities by -58.57% 2020 (see Chart 34).

 

Chart 34: Tourist Plc Debt-to-equity Ratio (%)

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Source: TCN Plc Unaudited Financial Statement for FYE 2020, Proshare Research


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Total Equity

Tourist Plc total equity fell by -58.57% to N4.64bn in 2020 from N11.20bn in 2019. The decline in total equity was ascribed to the increase in accumulated losses to N20.61bn in 2020 from N14.08bn in 2019 (see Chart 35).

 

Chart 35: Tourist Plc Total Equity (N'bn)

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Source: TCN Plc Unaudited Financial Statement for FYE 2020, Proshare Research

 

Total Assets

The hotel group's total assets slumped by -4.26% to N31.93bn from N33.45bn in 2019. Both its current and non-current assets dipped by -1.94% and -44.3% respectively. Its non-current assets declined from N31.52bn in 2019 to N30.91 in 2020 while its current assets fell from N1.83bn in 2019 to N1.02bn in 2020 (see Chart 36).

 

Chart 36: Tourist Plc Total Assets (N'bn)

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Source: TCN Plc Unaudited Financial Statement for FYE 2020, Proshare Research

Current Ratio

The hospitality provider's current ratio dipped to 0.7 in 2020 from 1.2 in 2019. This implied that TCN had liquid assets of N0.7 for every N1 in short-dated liabilities. The decline in its current ratio was attributed to the dip in current assets by -1.94% and the increase in current liabilities by +2.43% (see Chart 37).

 

Chart 37: Tourist Plc Current Ratio

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Source: TCN Plc Unaudited Financial Statement for FYE 2020, Proshare Research

 

Acid-test Ratio

TCN's acid-test ratio dipped to 0.6 in 2020 from 1.1 in 2019. This suggested that for every N1 of current liabilities, the Tourist Company of Nigeria had N0.6 of very liquid assets to cover its immediate obligations. The fall was ascribed to the rise in inventory by +4.11% to N115.17m in 2020 from N110.63m in 2019 (see Chart 38).

 

Chart 38: Tourist Plc Acid-test Ratio

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Source: TCN Plc Unaudited Financial Statement for FYE 2020, Proshare Research


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Downloadable Version of Proshare Confidential: Hospitality Post-COVID-19: Making the Future Count

1.      Full Report: Hospitality Post-COVID-19: Making the Future Count - Apr 23, 2021

2. Executive Summary: Hospitality Post-COVID-19: Making the Future Count - Apr 23, 2021


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Related Links

  1. Dissecting the Financial Results of Companies in Nigeria’s Hospitality Sector - IKEJAHOTEL
  2. Dissecting the Financial Results of Companies in Nigeria's Hospitality Sector - CAPHOTEL
  3. Dissecting the Financial Results of Companies in Nigeria's Hospitality Sector - TRANSCOHOT
  4. Hotels - A Peep into Performance
  5. Hospitality: COVID-19 Related Policy Shifts
  6. Hospitality Before and After - The Unmaking of Hotels
  7. Hospitality: A Post-COVID-19 Reality
  8. Hospitality Post-COVID-19: Making the Future Count

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Related News on Tourist Company of Nigeria Plc

1.          TOURIST Declares N6.5bn loss in Q4 2020 Results, (SP:N2.84k)

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4.         TOURIST Releases 2019 Audited and Q1 2020 Results, declares N4.1bn loss in Q1 2020, (SP:N3.15k)

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