Hotel Shilla (008770) Q4 2023 earnings summary

Executive summary

• Q4 revenue fell 28% YoY to KRW 937.6bn; operating loss widened to KRW 18.3bn, driven by weaker travel retail results.

• Hotel & Leisure revenue rose 4% YoY, partly offsetting the 32% decline in travel retail revenue.

Financial highlights

• Q4 consolidated revenue was KRW 937.6bn, down 28% YoY and 7% QoQ; operating loss was KRW 18.3bn vs. KRW 6.7bn in 4Q22 and KRW 7.7bn profit in 3Q23.

• Consolidated operating margin was -2.0% in 4Q23, compared with -0.5% in 4Q22 and 0.8% in 3Q23.

• FY2023 revenue was KRW 3,568.5bn; EBITDA was KRW 218.9bn and EBITDA/revenue was 6.1%.

Outlook and guidance

• Q1 travel retail priority: maximize business efficiency while responding to changes in the business environment and travel retail demand.

• Q1 Hotel & Leisure focus: sustain strong performance through flexible responses to customer demand.