[Edaily Reporter SHIN MIN JOON ] HotelShilla(008770)reported a significant increase in operating profit for the second quarter of this year. However, revenue declined due to the closure of the DF1 duty-free zone at Incheon International Airport’s Terminal 1.

HotelShilla announced on the 31st that, based on its consolidated financial statements, it recorded revenue of 971.8 billion won and operating profit of 61.1 billion won for the second quarter of this year. Revenue decreased by 5.2% compared to the same period last year. In contrast, operating profit surged by 606%. Net income for the same period was 21.4 billion won, marking a turnaround from a net loss of 0.9 billion won in the same period last year.

HotelShilla explained, “Revenue declined slightly due to the closure of the DF1 duty-free zone at Incheon International Airport’s Terminal 1,” adding, “However, operating profit increased significantly as we focused on solid, profitability-driven management.”

Specifically, the Duty-Free (TR) division focused on securing a stable business foundation through profitability-centered, sound management, despite ongoing industry-wide challenges caused by high exchange rates and a deteriorating global economy.

The Hotel & Leisure Division is continuing its trend of improved revenue and profitability as the hotel industry enters its peak season and new hotels open. As its performance stabilizes, HotelShilla plans to focus even more on sound management.

The TR Division will focus on securing sustained profitability while proactively responding to changes in the domestic and international environments and the duty-free market. The Hotel & Leisure Division will strengthen brand competitiveness based on its three-brand system. In addition, the Hotel & Leisure Division plans to actively respond to customer demand with differentiated products and services.