PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close
Very Good Tour expanded its earnings base sharply in 2025 on the back of extended visa-free entry to China and recovering outbound demand, but quarter-to-quarter operating margin swings widened through 2026, leaving profitability stability as an ongoing challenge.
2025 consolidated revenue reached KRW 92.1bn with operating profit of KRW 9.8bn, a sharp improvement from the prior year, while net profit expanded to KRW 10.8bn.
Over the latest four quarters (Q3 2025 through Q2 2026), revenue totaled roughly KRW 87.2bn with operating profit near KRW 8.5bn, though the Q2 2026 operating margin fell to around 1%.
China's visa-free entry policy for Korean travelers has been extended through December 31, 2026, with expanding air routes supporting outbound travel demand.
While listed travel agencies averaged operating margins of only 4-6%, Very Good Tour posted a double-digit margin in 2025, standing out for relatively solid profitability.
The debt ratio stood at 72.5%, down from 78.1% in 2024 but up from 69.6% in 2023, indicating overall financial stability with some fluctuation.
Very Good Tour is a KOSDAQ-listed travel agency whose core businesses are package tour products, air ticket sales, various travel agency services, and sales of overseas specialty goods.
The vast majority of revenue comes from travel brokerage sales, with the travel service segment historically accounting for roughly 97-98% of total revenue based on past disclosures, leaving other segments such as merchandise sales marginal.
The company pursues a direct-sales model to reduce distribution costs and focuses on selecting local partners and developing tour itineraries to offer relatively reasonably priced products.
Its areas of specialization include themed travel such as golf tours and cruise tours, along with expertise in organizing group trips for clubs and corporate travelers.
In the domestic competitive landscape, Hana Tour and Mode Tour lead by revenue scale, while Yellow Balloon Tour and Lotte Tour Development are also listed peers, positioning Very Good Tour as a mid-sized package specialist.
Recently, moves such as Yanolja's stake accumulation in Mode Tour have raised the prospect of industry consolidation as platform companies and traditional agencies vie for position.
Amid intensifying price competition from global OTAs and online platforms, the company is attempting differentiation through long- and mid-haul products to destinations such as Europe and China as well as premium, theme-based packages.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩19.2B | ₩2.3B | 12.1% |
| 2025Q3 | ₩19.9B | ₩5.7B | 28.6% |
| 2025Q4 | ₩28.8B | ₩1.4B | 4.9% |
| 2026Q1 | ₩21.1B | ₩1.1B | 5.4% |
| 2026Q2 | ₩17.4B | ₩300M | 1.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩13.6B | -₩15.8B | -₩12.2B | −115.8% | −15.9% | 42.9% |
| 2023 | ₩68.7B | ₩6.4B | ₩7B | 9.3% | 8.2% | 69.6% |
| 2024 | ₩80.8B | ₩2B | ₩3.1B | 2.5% | 3.6% | 78.1% |
| 2025 | ₩92.1B | ₩9.8B | ₩10.8B | 10.6% | 10.9% | 72.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
2025 consolidated revenue rose to KRW 92.1bn from KRW 80.8bn in 2024, while operating profit jumped to KRW 9.8bn from KRW 2.0bn, lifting the operating margin from 2.5% to 10.6%. Net profit attributable to owners also expanded sharply to KRW 10.8bn from KRW 3.1bn in 2024.
Given that 2023 posted revenue of KRW 68.7bn, operating profit of KRW 6.4bn (9.3% margin), and owner net profit of KRW 7.0bn, the 2025 results can be read as a recovery that surpassed the 2023 level.
By contrast, 2022 saw revenue of just KRW 13.6bn alongside an operating loss of KRW 15.8bn (-115.8% margin) and a net loss of KRW 12.2bn, reflecting the collapse in travel demand during the pandemic.
On a quarterly basis, Q3 2025 delivered the strongest margin of the window, with revenue of KRW 19.9bn, operating profit of KRW 5.7bn, and net profit of KRW 5.6bn, whereas Q4 2025 revenue rose to KRW 28.8bn but operating profit fell to KRW 1.4bn and net profit to KRW 1.8bn as margins compressed.
Q1 2026 posted revenue of KRW 21.1bn and operating profit of KRW 1.1bn, yet net profit reached KRW 3.1bn, notably higher than operating profit, suggesting a contribution from non-operating items.
Q2 2026 revenue was KRW 17.4bn with operating profit of only about KRW 0.25bn, pushing the operating margin down to roughly 1%, while net profit still came in at KRW 1.3bn, again supported by items outside core operations.
Summing the latest four quarters (Q3 2025 through Q2 2026) yields revenue of about KRW 87.2bn, operating profit of about KRW 8.5bn, and owner net profit of about KRW 11.8bn — indicating the overall profit level has been sustained annually even as quarter-to-quarter margins show pronounced dispersion.
Listed Korean travel agencies have seen their revenue scale recover to pre-pandemic levels, but average operating margins are estimated at only 4-6% amid intense price competition from global OTAs and other platforms.
This is less than half the 10-15% average profit margin seen in other listed industries, underscoring the persistently thin margin structure of the travel sector.
Against this backdrop, Very Good Tour's 2025 standalone operating profit rose sharply year-over-year, positioning it as one of the more solidly run listed travel agencies.
On the demand side, China extended visa-free entry for Korean travelers through December 31, 2026, and China-bound air passenger traffic rose 25.1% year-over-year in Q1 2026, surpassing pre-pandemic levels, evidencing a clear recovery in outbound demand.
Expanded air traffic rights and new regional airport routes are also cited as factors improving accessibility. However, Korea's own temporary visa-free program for Chinese group tourists ran only from September 29, 2025 through June 30, 2026 and has already ended, with further extension unconfirmed.
On the competitive front, moves such as Yanolja's stake accumulation in Mode Tour point to a tug-of-war between platform companies and traditional agencies, raising the tentative prospect of industry consolidation.
Rising demand for themed products such as small-town travel in Japan and European cruises is also cited as a differentiation opportunity for package specialists.
The company has attributed its earnings improvement mainly to increased travel volumes to long-haul destinations such as Europe and China, aided by visa-free conditions between Korea and China, and disclosed that reduced SG&A from the reversal of prior bad-debt provisions and compensation costs also contributed to the 2025 profit expansion.
Since China's visa-free entry policy for individual travelers remains in place through December 31, 2026, related demand could persist into the second half, while the Korean government has also been easing its own visa rules by expanding multiple-entry visa issuance for Chinese travelers with prior visit history or residence in major cities.
That said, the drop in the Q2 2026 operating margin to around 1% suggests continued margin pressure could stem from seasonal swings between peak and off-peak periods or intensifying sales competition.
Across the broader travel industry, demand is expected to keep shifting toward nearby destinations such as China and Japan alongside expanding air capacity, with some analysis pointing to the relative appeal of lower-cost, short-haul destinations amid a persistently high exchange rate and fuel cost environment.
No specific numerical guidance from the company has been confirmed, and future results are likely to hinge on peak-season booking rates and the continuity of policy variables such as visa-free arrangements.
Q3 2026 results are expected to capture peak-season demand including the Chuseok holiday, making it notable whether the relatively strong margin recorded in the same period a year earlier (Q3 2025) can be repeated.
The current share price stands below the company's book value per share, meaning the stock trades at a discount relative to net assets.
Profit scale moved from a large loss in 2022 to a swing into profit in 2023 and further expansion through 2025, and the earnings multiple the market assigns has shifted along with this trajectory.
However, if quarters with sharply reduced operating margins, such as Q2 2026, recur, the market's assessment of annual earnings stability could shift accordingly.
Dividends appear to be increasingly supported by the profit recovery, but the seasonality of travel-industry results and volatility tied to policy variables should be considered alongside this.
Overall, valuation appears to be moving in response to two factors simultaneously: the durability of the earnings recovery and the dispersion in margins seen from quarter to quarter.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
China's extension of visa-free entry for Korean travelers through December 31, 2026 has kept related travel demand firm. China-bound air passenger traffic rose 25.1% year-over-year in Q1 2026, surpassing pre-pandemic 2019 levels.
Expanded air traffic rights and new regional airport routes are also improving accessibility, benefiting the broader outbound market.
While listed travel agencies averaged operating margins of only 4-6%, Very Good Tour posted a full-year operating margin of 10.6% in 2025, a relatively solid profitability structure. Recovering to a double-digit margin again in 2025, following 9.3% in 2023, points to disciplined cost management. Distribution cost savings from its direct-sales model also contribute to margin defense.
The debt ratio declined to 72.5% in 2025 from 78.1% in 2024, and operating cash flow reached KRW 22.2bn in 2025, exceeding net profit. Following capital erosion during the pandemic, shareholders' equity has steadily recovered from KRW 77.0bn in 2022 to KRW 99.1bn in 2025. Financial stability has been maintained alongside the ongoing profit recovery.
The Q3 2025 operating margin reached roughly 29% of revenue, but it fell to around 1% by Q2 2026. The gap between peak and off-peak seasons is wide, and quarters where net profit substantially exceeds operating profit (Q1 and Q2 2026) suggest growing reliance on non-operating factors. The stability of core operating profit itself has not yet been fully confirmed.
Listed travel agencies average operating margins of only 4-6%, less than half the average of other industries. Amid ongoing price competition from global OTAs and other platforms, individual companies' margin improvements are unlikely to easily offset these structural industry factors. This environment could remain a persistent cost pressure for Very Good Tour as well.
Korea's own temporary visa-free program for Chinese group tourists ended on June 30, 2026, and whether it will be extended further remains unconfirmed. China's visa-free policy for Korean travelers is also set to expire on December 31, 2026, leaving renewal uncertain. Such policy variables can directly affect the direction of travel demand.
Policies easing cross-border travel between Korea and China depend on decisions by both governments, and as of July 2026 further extension of the visa-free program for Chinese group tourists had not been officially confirmed.
Korea-China relations can fluctuate with political and diplomatic developments, meaning policy changes could directly affect results.
In an environment of persistently high fuel prices, cost burdens for airfare and travel packages could increase. Exchange rate fluctuations are also a factor affecting the cost base and price competitiveness of overseas travel products.
Moves such as Yanolja's stake accumulation in Mode Tour point to a tug-of-war between platform companies and traditional agencies, raising the possibility of industry restructuring.
Amid ongoing price competition from global OTAs, maintaining relative competitiveness as a mid-sized package specialist remains a challenge for Very Good Tour.
Booking rates and outbound traveler figures around the Chuseok holiday peak season can indicate the strength of Q3 travel demand.
The Q3 2026 earnings disclosure will show whether the operating margin recovers from the low level seen in Q2 2026.
This marks the expiry date of China's visa-free entry policy for Korean travelers, and whether it is renewed will be an important variable for future outbound demand.
The 2026 full-year earnings and dividend disclosure will confirm the durability of annual profit and any changes in dividend policy.
Very Good Tour has shown a recovery trajectory from a large pandemic-era loss in 2022 to a swing into profit in 2023 and expanded earnings by 2025, notably posting an operating margin above the listed travel-agency average.
However, operating margins have swung sharply on a quarterly basis through 2026, meaning the durability of the annual profit level will require confirmation over the coming quarters.
China's extended visa-free entry and expanding air routes support outbound demand, but the policy faces an expiry at the end of 2026, leaving some uncertainty. The industry's structurally thin margins and intensifying competition with platform companies are also factors to weigh.
On the financial side, the debt ratio has been managed at a stable level, and operating cash flow has continued to exceed net profit.
Ultimately, readers should weigh the durability of the earnings recovery, quarterly margin volatility, and the direction of policy variables on their own in reaching any investment judgment.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.