Hotel Shilla (008770) Q1 2025 earnings summary

Executive summary

• 1Q 2025 revenue declined by 0.9% year-over-year to 971.8bn KRW; operating profit turned to a loss of -2.5bn KRW from a profit in the prior year.

• Travel Retail (TR) revenue fell 0.4% year-over-year to 827.1bn KRW, with operating profit turning to a -5.0bn KRW loss.

• Hotel & Leisure revenue dropped 3.6% year-over-year to 144.7bn KRW; operating profit decreased 59.7% to 2.5bn KRW.

Financial highlights

• Consolidated operating margin fell to -0.3% from 1.2% year-over-year.

• EBITDA margin for 1Q 2025 was 3.4%, down from 6.1% in 2024.

• Assets totaled 3,647.8bn KRW, liabilities 2,369.6bn KRW, and equity 1,278.2bn KRW as of March 31, 2025.

Outlook and guidance

• Travel Retail segment aims to recover profitability by adapting to changing market conditions in 2Q.

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