Hotel Shilla (008770) Q2 2025 earnings summary

Executive summary

• Operates two main segments: Travel Retail and Hotel & Leisure, with a global presence in duty-free and hospitality markets.

• 2025 H1 revenue was KRW 1,997.2 billion, with Travel Retail contributing 84.6% and Hotel & Leisure 17.1%.

• Revenue grew 2.3% YoY to 1,025.4bn KRW in 2Q 2025, but operating profit dropped 68.5% to 8.7bn KRW.

• Net loss attributable to owners was KRW -7.1 billion, an improvement from KRW -61.5 billion in H1 2024.

• Ongoing cost reduction and restructuring efforts in response to post-pandemic challenges and weak Chinese tourist demand.

Financial highlights

• Revenue for H1 2025: KRW 1,997.2 billion, down from KRW 3,947.6 billion in H1 2024.

• Operating income: KRW 6.2 billion (H1 2025), compared to a loss of KRW -5.2 billion in H1 2024.

• Consolidated operating profit margin fell to 0.8% from 2.8% YoY.

• EBITDA margin for 2Q 2025 was 4.3%, down from 6.1% in 2024.

• Annual CAPEX for 2Q 2025 was 21.5bn KRW, with prior years at 47.4bn KRW (2023) and 64.7bn KRW (2024).

Outlook and guidance

• Company is diversifying its business portfolio and pursuing new ventures in leisure, condominiums, and senior living.

• Focus on cost control, restructuring, and improving profitability in both domestic and overseas operations.

• Travel Retail segment aims to recover profitability amid changing market conditions in 3Q.

• Hotel & Leisure expects to maintain strong performance by adapting to customer demand.

• Asset-light strategy to mitigate risks in new business areas.