"Tax-Free Shop Effect" Hotel Shilla 2Q Operating Profit 67.2 Billion Won... Up 56% (Comprehensive)

Sales Decrease by 26% to 866.9 Billion KRW

Hotel Shilla announced on the 28th that its consolidated operating profit for the second quarter of this year reached 67.2 billion KRW, a 56% increase compared to the same period last year. Sales decreased by 26% to 866.9 billion KRW, while net profit surged 195% to 72.4 billion KRW. Compared to the previous quarter, sales and operating profit increased by 15% and 95%, respectively.

Seoul Shilla Hotel exterior view
[Photo by Hotel Shilla].

A Hotel Shilla representative explained, "The overall improvement in the tourism industry normalization atmosphere and efforts for solid management to secure profitability led to better performance compared to the previous quarter."

By business segment, the TR (Duty-Free) division recorded an operating profit of 43.2 billion KRW in the second quarter, a 192% increase from the same period last year, while sales fell 30% to 708.1 billion KRW. Although sales declined due to the reduction of commission fees for Chinese peddlers (ttaigong), operating profit increased. The TR division's operating profit margin for the second quarter also reached 6.1%, showing a remarkable improvement compared to 1.5% in the second quarter of last year. This was partly due to improved market conditions from the increase in independent travelers, but it is analyzed that a full recovery has not yet been achieved.

The Hotel & Leisure division's operating profit decreased by 15% to 24 billion KRW. Sales increased by 2% to 158.8 billion KRW. Sales at Seoul Shilla Hotel and Shilla Stay rose by 15% and 28%, respectively, compared to the same period last year. Occupancy rates also increased to 72% and 85%, respectively. However, sales at Jeju Shilla Hotel, which mainly serves domestic hotel staycation customers, fell by 19% due to the increase in overseas travel by domestic tourists.

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