Hotel Shilla (008770) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q 2024 increased 0.4% year-over-year to 1,016.2bn KRW, but operating profit turned to a loss of -17.0bn KRW compared to a profit in the same quarter last year.

• Travel Retail revenue was nearly flat year-over-year, while Hotel & Leisure saw modest growth.

Financial highlights

• Consolidated revenue: 1,016.2bn KRW (+0.4% YoY), operating profit: -17.0bn KRW (turned to loss YoY).

• Travel Retail revenue: 844.8bn KRW (-0.1% YoY), operating loss widened to -38.7bn KRW.

• Hotel & Leisure revenue: 171.4bn KRW (+2.8% YoY), operating profit: 21.7bn KRW (-9.6% YoY).

• EBITDA margin dropped to 1.6% for 3Q 2024 from 6.1% in 2023.

Outlook and guidance

• Focus on profitability recovery in Travel Retail amid changing market conditions.

• Hotel & Leisure aims to maintain strong performance by flexibly responding to customer demand.