Hanjin Kal (A180640) Q2 2024 earnings summary

Executive summary

• Consolidated operating revenue for Q2 2024 was 702 billion KRW, up 6.2% year-over-year and 0.6% sequentially.

• Operating income reached 145 billion KRW, a 2.1% increase year-over-year and 12.4% sequentially.

• Net income for Q2 2024 was 1,373 billion KRW, up 59.1% year-over-year and 23.6% sequentially.

• Operates as a holding company with core revenue from brand royalties, dividends, and real estate leasing; major subsidiaries include an airline, logistics, hotel, and real estate management firms.

• Completed the sale of Waikiki Resort Hotel Inc. in April 2024 for liquidity enhancement.

Financial highlights

• Q2 2024 consolidated pre-tax income surged 125.2% year-over-year to 1,930 billion KRW.

• EBITDA for Q2 2024 was 204 billion KRW, up 6.3% sequentially.

• Airline segment H1 2024 revenue: 7,846,200 million KRW (+16.6% YoY); operating profit: 849,500 million KRW.

• Logistics segment H1 2024 revenue: 1,182,812 million KRW (+1.3% YoY); operating profit: 60,242 million KRW.

• Hotel segment H1 2024 revenue: 50,683 million KRW; occupancy rate at 59%.

Outlook and guidance

• Management notes that future performance is subject to market and strategic changes, with forecasts inherently uncertain.

• Airline expects continued strong demand on North America and Europe routes, with supply increases planned for high-demand summer season.

• Logistics expects steady growth from e-commerce and global forwarding, with ongoing investments in automation and digital platforms.

• Hotel segment targets higher occupancy and group demand via aggressive marketing and facility upgrades.