Hotel Shilla (008770) Q3 2025 earnings summary

Executive summary

• Operates in two main segments: Travel Retail and Hotel & Leisure, with Travel Retail accounting for 84.1% of Q3 revenue and Hotel & Leisure 17.5%.

• Q3 2025 consolidated revenue was KRW 3,022.9 billion, down from KRW 3,947.6 billion in Q3 2024.

• Operating income for Q3 2025 was KRW 17.6 billion, a turnaround from a KRW 5.2 billion loss in Q3 2024.

• Net loss attributable to owners was KRW 156.2 billion, widening from a KRW 61.5 billion loss in Q3 2024.

• The business portfolio spans travel retail, hotel, leisure, and business travel management, with a focus on premium lifestyle services.

Financial highlights

• Q3 2025 revenue: KRW 3,022.9 billion (down 23.4% YoY).

• Operating income: KRW 17.6 billion (vs. loss of KRW 5.2 billion YoY).

• Net loss: KRW 156.2 billion (vs. loss of KRW 61.5 billion YoY).

• Basic and diluted EPS: -4,127 KRW (vs. -1,625 KRW YoY).

• Cash and cash equivalents at period end: KRW 277.8 billion (down from KRW 370.4 billion YoY).

Outlook and guidance

• The travel retail market remains below pre-pandemic levels, with 2024 domestic duty-free sales at 57% of 2019 levels.

• The company is focusing on cost reduction, restructuring, and diversification of its customer portfolio.

• Plans to strengthen financial structure and improve profitability across domestic and overseas operations.

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