Hotel Shilla (008770) Q2 2024 earnings summary

Executive summary

• Revenue grew 15.7% year-over-year to 1,002.7bn KRW in 2Q 2024, with operating profit down 58.9% to 27.6bn KRW.

• Travel Retail segment led revenue growth but saw a sharp decline in operating profit.

• Hotel & Leisure segment posted moderate revenue growth but also experienced a drop in operating profit.

Financial highlights

• Consolidated revenue: 1,002.7bn KRW (+15.7% YoY, +2.2% QoQ).

• Operating profit: 27.6bn KRW (-58.9% YoY, +128.1% QoQ).

• EBITDA margin for 2Q 2024 was 6.0%.

• Annual CAPEX for 2Q 2024 was 27.3bn KRW (non-consolidated, accumulated).

Outlook and guidance

• Travel Retail to focus on profitability recovery amid changing market conditions.

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