Hotel Shilla (008770) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, was ₩2,999.7 billion, down from ₩3,568.5 billion year-over-year.

• Operating income for the period was ₩22.8 billion, a significant decrease from ₩91.2 billion in the prior year.

• Net income attributable to owners was ₩2.5 billion, compared to ₩86.0 billion in the same period last year.

• The company operates two main segments: Travel Retail (TR) and Hotel & Leisure.

• The TR segment remains the primary revenue driver, but both segments saw declines in profitability.

Financial highlights

• Gross margin for the period was 41.4%, down from 44.5% year-over-year.

• Basic and diluted EPS for common shares was ₩65, compared to ₩2,270 in the prior year.

• Total assets at period-end were ₩2,998.2 billion, with total liabilities of ₩2,380.5 billion and equity of ₩617.7 billion.

• Cash and cash equivalents stood at ₩380.7 billion, down from ₩411.7 billion at the previous year-end.

• Dividend payments for common shares totaled ₩7.4 billion in April 2024.

Segment performance

• TR segment revenue was ₩2,523.0 billion (84.1% of total), with an operating loss of ₩37.3 billion.

• Hotel & Leisure segment revenue was ₩530.4 billion, with operating profit of ₩48.5 billion.

• Both segments experienced revenue and profit declines compared to the previous year.

• The company continues to expand its global TR footprint and enhance hotel brand competitiveness.