Operating Profit Down 69% Year-on-Year Due to Sluggish Duty-Free Business
"Focusing on Solid Management in Response to Market Changes"
Hotel Shilla continued to post lackluster results in the second quarter of this year, as the duty-free business environment remained sluggish following the COVID-19 pandemic.
On July 25, Hotel Shilla announced in a regulatory filing that its consolidated operating profit for the second quarter of this year was provisionally tallied at 8.7 billion KRW, a decrease of 68.7% compared to the same period last year. However, the company returned to profitability compared to the previous quarter, when it posted an operating loss of 2.5 billion KRW in the first quarter of this year. Second-quarter revenue was 1.0254 trillion KRW, up 2.3% from the same period last year. Compared to 971.8 billion KRW in the first quarter, this represents a 5.5% increase.
Breaking it down further, duty-free sales reached 850.2 billion KRW, up 2.1% from the same period last year. While domestic downtown store sales fell by 3.2%, airport store sales increased by 6.4%. The duty-free segment posted an operating loss of 11.3 billion KRW, reversing to a loss compared to the same period last year. The hotel and leisure segment recorded sales of 175.2 billion KRW, up 3.2% year-on-year, while operating profit decreased by 2.9% to 20 billion KRW.
A Hotel Shilla representative stated, "The duty-free segment will continue to focus on solid management by responding swiftly to changes in the market environment." The representative added, "We will continue to strengthen the competitiveness of products and services in the hotel and leisure segment."
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