Hotel Shilla's Q3 operating profit jumps 382% year on year to 52.2 billion won

[Financial News] Hotel Shilla's operating profit surged in the third quarter of this year from a year earlier, helped by lower costs following the closure of operations in some sections of its duty-free stores at Incheon International Airport and improved performance in its hotel and leisure division.
According to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART) on the 28th, Hotel Shilla's operating profit for the third quarter of this year rose 382.4% year on year to 52.2 billion won. Revenue for the same period fell 6.5% year on year to 959 billion won.
Hotel Shilla's cumulative operating profit for the first three quarters of this year rose 676.7% to 136.7 billion won, compared with 17.6 billion won in the same period last year. However, cumulative revenue fell 1.3% year on year to 2.9844 trillion won.
Hotel Shilla said the closure of duty-free operations in the DF1 area at Incheon Airport, which had continued to post losses due to high rental costs, contributed to the increase in third-quarter operating profit.
By business segment, the TR division, which handles the duty-free business, continues to face difficulties amid sharp exchange-rate fluctuations, a slowdown in the global economy and a slump in the duty-free industry. Hotel Shilla said it is focusing on securing a stable business foundation by strengthening sound management. The hotel and leisure division improved its revenue and profitability year on year, buoyed by the peak-season effect and increased demand from foreign customers.
Hotel Shilla plans to focus even more on sound management in the fourth quarter.
A Hotel Shilla official said, "With inbound travel demand expected to recover in the fourth quarter, thanks to China's National Day holiday and expanded air routes between China and South Korea, the TR division will work on improving profitability on multiple fronts." The official added, "The hotel and leisure division will also focus on the growing number of foreign customers and year-end demand, while continuing to strengthen the competitiveness of its products and services."

[email protected] Jang Yu-ha Reporter