Hotel Shilla (008770) Q3 2024 earnings summary

Executive summary

• Operates in two main segments: Travel Retail (TR) and Hotel & Leisure, with a global footprint in both sectors.

• 3Q 2024 consolidated revenue was ₩2,999,742 million, with TR contributing 84.1% and Hotel & Leisure 17.7%.

• Net income attributable to controlling interests was ₩2,485 million, a sharp decline from ₩85,979 million in the same period last year.

• 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.

• The company maintains a strong presence in both domestic and international markets, with ongoing digital transformation and expansion.

Financial highlights

• 3Q 2024 revenue: ₩2,999,742 million, down 16% year-over-year.

• Operating income: ₩22,764 million, down 75% year-over-year.

• Net income: ₩2,486 million, down 97% year-over-year.

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

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

Outlook and guidance

• Focus on strengthening global competitiveness in TR and hotel businesses.

• Plans to enhance digital and online sales channels, including metaverse and non-face-to-face services.

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

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

• Continued expansion of hotel brands and international presence, with new openings in Vietnam and Jeju.