Hotel Shilla (008770) Q2 2025 earnings summary

Executive summary

• Revenue grew 2.3% year-over-year to 1,025.4bn KRW in 2Q 2025, but operating profit dropped 68.5% to 8.7bn KRW.

• Travel Retail segment saw revenue rise 2.1% YoY, but operating profit turned to a loss of -11.3bn KRW.

• Hotel & Leisure revenue increased 3.2% YoY, with operating profit down 2.9% to 20.0bn KRW.

Financial highlights

• Consolidated operating profit margin fell to 0.8% from 2.8% YoY.

• EBITDA margin for 2Q 2025 was 4.3%, down from 6.1% in 2024.

• Annual CAPEX for 2Q 2025 was 21.5bn KRW, with prior years at 47.4bn KRW (2023) and 64.7bn KRW (2024).

Outlook and guidance

• Travel Retail segment aims to recover profitability amid changing market conditions in 3Q.

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