Ikeja Resort Plc has introduced its unaudited {financial} outcomes for the second quarter ended June 30, 2025, posting a Revenue Earlier than Tax (PBT) of N2.18 billion, representing a 57% year-on-year (YoY) progress.
This sturdy Q2 efficiency pushed half-year PBT to N4.67 billion, marking a 127% YoY improve in comparison with the N2.06 billion reported in H1 2024.
The sturdy bottom-line efficiency was underpinned by strong income progress, pushed largely by room gross sales, which contributed over 71% of whole income.
Income rose by 36.6% YoY, outpacing the expansion in value of gross sales, to succeed in N6.021 billion in Q2 2025, bringing whole H1 2025 income to N12.13 billion. Notably, the corporate generated over N8.5 billion from room gross sales alone within the first half of the 12 months.
The Board of Administrators has declared an interim dividend of N0.03 per 50 kobo extraordinary share. The dividend is topic to withholding tax and can be paid to shareholders whose names seem on the Register of Members as of August 15, 2025.
A cursory evaluation of the {financial} experiences reveals sturdy topline progress, pushed primarily by income from room gross sales, supported by a notably excessive revenue-to-cost ratio.
In Q2 2025, Ikeja Resort generated N4.3 billion from room gross sales, with a direct value of simply N468 million, translating to a revenue-to-cost ratio of 9.19x. In essence, the resort earned N9.19 for each N1 spent on direct room-related prices.
This delivered a room gross revenue of N3.83 billion and an distinctive room gross margin of 89.1%. This excessive margin from core room operations contributed considerably to the general improve in gross revenue, lifting the corporate’s gross margin to 47.5% in Q2.
Such excessive margins are typical within the hospitality trade, the place heavy upfront investments in property, vegetation, and tools (PPE) assist maintain variable prices low throughout operations.
Moreover, the slender hole between the gross revenue margin (47%) and the working revenue margin (35%) displays moderated overheads. This ensures a large portion of income flows by to working revenue, reinforcing the resort’s potential to stay worthwhile in a capital-intensive enterprise.
As of June 30, 2025, Ikeja Resort’s whole property stood at N88.34 billion, reflecting a modest 6% decline from N93.67 billion recorded on the finish of December 2024.
Shareholders’ fairness rose by 9.96% in six months to N33.60 billion, supported by retained earnings progress.
Different key highlights: (Q2 2025 vs. Q2 2024)
As of the shut of buying and selling on Monday, July 28, 2025, Ikeja Resort’s share value stood at N23.10, reflecting a 105% year-to-date (YtD) acquire.
