Hotel Shilla Reports Q1 Operating Profit of 15.1 Billion KRW, Down 43% YoY (Comprehensive)

[Asia Economy Reporter Lim Chun-han] Hotel Shilla announced on the 29th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 15.1 billion KRW, a 43% decrease compared to the same period last year.

Sales increased by 50.5% year-on-year to 1.0944 trillion KRW. Net loss widened to 7.7 billion KRW.

Duty-free store sales in the first quarter rose 55% year-on-year to 978.5 billion KRW, while operating profit decreased by 70% to 12.7 billion KRW. Domestic downtown duty-free store sales and airport store sales increased by 60% and 11%, respectively.

Hotel and leisure business sales grew 22.4% to 115.9 billion KRW, and operating profit turned positive to 2.4 billion KRW.

A Hotel Shilla official stated, “Although sales and operating profit declined compared to the previous quarter due to the domestic spread of Omicron, China’s COVID-19 lockdown policies, and the end of patent fee reduction benefits, we maintained sales growth compared to the same period last year and continued a five-quarter consecutive profit trend despite difficult circumstances. With the full lifting of social distancing measures, expectations for revitalizing domestic and international tourism are growing, and we plan to actively prepare and respond to the post-pandemic era.”

This content was produced with the assistance of AI translation services.