[EQUITIES] Shinhan Investment forecasts Hotel Shilla’s Q3 profit to jump 1312% to W39.5b

By Korea Herald

Published : July 25, 2016 - 10:01

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[THE INVESTOR] Shinhan Investment forecast Hotel Shilla’s second-half profit to rise on improving profit margins in both the hotel and duty-free business in the second half of the year.

Third quarter operating profit was forecast to rise 1312 percent on-year to 39.5 billion won (US$347.16 million) on a consolidated basis, to further increase by 173 percent to 30.8 billion won.

Rising tourist volume will contribute to the increase, Shinhan said. As a further catalyst, the license of rivals in the duty-free sector, such as SK and Lotte expired this year.

Shilla Ipark Duty Free Shop in Seoul

Hotel Shilla’s hotel business was also expected to continue on a path of profit after a turnaround to the black in the second quarter. The company maintained its market share in the duty-free sector, but operating costs rose.

Deficit from its duty-free operation in Singapore’s Changi Airport also cut into profit.

During the April-June period, Hotel Shilla posted sales of 954.1 billion won, while operating profit stood at 18.7 billion won.

Operating profit fell below the market consensus of 29 billion won, while sales was higher than the forecast 954.1 billion won.

By Kim Ji-hyun (jemmie@heraldcorp.com)

Korea Herald
Korea Herald
Articles by Korea Herald

[EQUITIES] Shinhan Investment forecasts Hotel Shilla’s Q3 profit to jump 1312% to W39.5b

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