Hana Tour Reports 9.8% Drop in Q2 Operating Profit Due to 'Timf' Unsettled Payments Impact

41 Billion KRW to 3.7 Billion KRW Year-on-Year Decrease
Full Write-off of Accounts Receivable

Hana Tour announced on the 6th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 3.7 billion KRW, a 9.8% decrease compared to the same period last year. During the same period, sales increased by 60.0% to 131.7 billion KRW, while net profit decreased by 36.3% to 12.6 billion KRW.

Morning commute scene in front of the Hana Tour headquarters in Jongno, Seoul. Photo by Jo Yongjun jun21@

The operating profit includes a one-time online partnership channel cost of 6.3 billion KRW, and excluding this one-time cost, the second quarter operating profit would be 9.9 billion KRW. Hana Tour fully wrote off the accounts receivable arising from TMON and WEMAKEPRICE as a one-time expense. This amount pertains to package products sold through these platforms that had already departed in June and July.

The company explained that the dependence on packages sold through TMON and WEMAKEPRICE accounts for about 1-2% of the monthly Gross Merchandise Volume (GMV). If the one-time cost had not been reflected, Hana Tour’s operating profit for the first half of this year would have been 31.6 billion KRW, marking the highest performance on a half-year basis.

A Hana Tour representative stated, "Due to the write-off of accounts receivable from 'Timep' in June and July and the seasonal off-peak period, second quarter sales and operating profit showed a decline compared to the first quarter. In the third quarter, since contracts for products after August were terminated, there will be no one-time costs related to the TMON and WEMAKEPRICE issues, although some penalties due to product cancellations may be reflected."