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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Hana Tour, the leading travel agency in South Korea, reported a 10% decrease in operating profit for Q2 this year, totaling 3.7 billion won, compared to the same period last year. Despite a significant 60% increase in sales to 131.7 billion won, net profit fell by 36.3% to 12.6 billion won.
The drop in profitability, despite increased revenue due to a rise in travelers, was impacted by unsettled accounts related to TMON and WEMAKEPRICE (TMEP). Hana Tour incurred a one-time bad debt expense of 6.3 billion won related to the TMEP situation. The company fully wrote off receivables for package tours sold through TMON and WEMAKEPRICE that had already departed in June and July.
Hana Tour's dependence on package sales through TMON and WEMAKEPRICE is relatively low, at about 1-2% per month. Without the one-time expense, the operating profit for the first half of the year would have reached a record high of 31.6 billion won.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
