Hotel Shilla reports first quarter operating loss of 2.5 billion won... ”Improved compared to previous quarter”

On a consolidated basis, Hotel Shilla (008770) reported an operating loss of 2.5 billion won (approximately 250 million yen) for the first quarter of this year, down from 12.1 billion won (approximately 1.2 billion yen) in the same period last year.
However, compared to the operating loss in the previous quarter (27.9 billion won, or about 2.8 billion yen), the deficit has narrowed.
TellSilla explained that sales were 971.8 billion won (US$972 million), down 0.9% from the same period last year. This is compared to the previous quarter (947.8 billion won, US$948 million).
The net loss was 6.2 billion won (approximately 620 million yen), an increase from the same period last year.
Sales in the duty-free division totaled 827.1 billion won, down 0.4% from the same period last year.
Sales at domestic city stores fell 21%, while sales at airport stores increased 18.7%. The duty-free division posted an operating loss of 5 billion won (US$5.5 million), a loss compared to the same period last year.
Sales in the hotel and leisure division were 144.7 billion won, down 3.6%. Operating profit for the division was 2.5 billion won, down 5.9%.
A source from the Shilla Hotel said, "The duty-free department is expected to implement temporary visa-free entry for Chinese group tourists in the second half of this year, so we are working on sales marketing to coincide with this.
"We will improve profitability by strengthening our marketing activities," he said. He added, "The hotel and leisure division will continue to improve its performance based on the competitiveness of its products and services."