Hotel Shilla (008770) Q1 2025 earnings summary

Executive summary

• Operates in two main segments: Travel Retail (TR) and Hotel & Leisure, with a global footprint including major Asian airports and domestic hotels.

• Q1 2025 consolidated revenue was KRW 971.8 billion, with TR contributing 85.7% and Hotel & Leisure 16.3%.

• The company reported a consolidated net loss of KRW 6.2 billion for Q1 2025, continuing losses from the previous year.

• 1Q 2025 revenue declined by 0.9% year-over-year to 971.8bn KRW; operating profit turned to a loss of -2.5bn KRW from a profit in the prior year.

• The TR segment remains challenged by reduced Chinese tourist spending, unfavorable exchange rates, and high fixed costs.

Financial highlights

• Q1 2025 consolidated revenue: KRW 971.8 billion, down from KRW 980.8 billion in Q1 2024.

• Operating loss: KRW 2.5 billion in Q1 2025, compared to a loss of KRW 2.5 billion in Q1 2024.

• Net loss attributable to owners: KRW 6.2 billion in Q1 2025, versus KRW 1.6 billion loss in Q1 2024.

• EBITDA margin for 1Q 2025 was 3.4%, down from 6.1% in 2024.

• Assets totaled 3,647.8bn KRW, liabilities 2,369.6bn KRW, and equity 1,278.2bn KRW as of March 31, 2025.

Outlook and guidance

• The TR segment faces ongoing headwinds from weak Chinese demand, high exchange rates, and fixed costs.

• The company is pursuing cost reductions, restructuring, and diversification of its customer base.

• Travel Retail segment aims to recover profitability by adapting to changing market conditions in 2Q.

• Hotel & Leisure expects to maintain strong performance by flexibly responding to customer demand and expanding new properties.