Hotel Shilla (008770) Q4 2024 earnings summary

Executive summary

• Revenue for 4Q 2024 increased by 1.1% year-over-year to 947.8bn KRW, but operating losses widened to -27.9bn KRW.

• Travel Retail revenue was nearly flat year-over-year, while Hotel & Leisure saw a 5.3% increase in revenue and a 40.4% rise in operating profit.

Financial highlights

• Consolidated revenue for 4Q 2024 was 947.8bn KRW, up 1.1% year-over-year; sequentially, revenue declined by 6.7%.

• Operating loss widened to -27.9bn KRW from -18.3bn KRW year-over-year.

• EBITDA margin for 2024 was 3.2%, down from 6.1% in 2023.

• Annual CAPEX increased to 64.7bn KRW in 2024 from 47.4bn KRW in 2023.

• Travel Retail revenue: 773.5bn KRW (+0.2% YoY), operating loss: -43.9bn KRW (wider YoY).

Outlook and guidance

• Travel Retail will focus on profitability recovery in response to changing market conditions.

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