11st Achieves Operating Profit Turnaround Last Year Through Business Efficiency... Sales Down 11.8%

[Asia Economy Reporter Cha Min-young] 11st Co., Ltd. succeeded in turning a profit on an annual basis in 2019 through business efficiency improvements.

According to SK Telecom's business performance disclosure on the 7th, 11st's operating profit for the year 2019 was 1.4 billion KRW, achieving a turnaround to profit compared to the previous year. Sales amounted to 595 billion KRW, a decrease of 11.8% compared to the previous year.

In the fourth quarter, due to year-end peak season promotions such as the November 11th Festival in November last year, a quarterly operating loss was recorded. Fourth-quarter sales were 151.7 billion KRW, and operating loss was 3.6 billion KRW.

Since 11st successfully reduced inefficient businesses and improved profitability continuously throughout 2019, this year it aims to increase customer traffic through the ‘commerce portal’ strategy, including strengthening search functions and launching customer participation-based commerce services in earnest, as well as achieving external growth by strengthening partnerships with various large affiliates.

11st aims to be the industry's only ‘commerce portal.’ Moving away from the existing coupon-centered price competition, it introduced SK Telecom's first subscription-type membership, the ‘All Prime’ membership, and enhanced SK Pay point benefits. During last November's 11th Festival, it also set records with a daily transaction amount of 147 billion KRW and 1.11 million daily purchasing customers.

Lee Sang-ho, CEO of 11st, stated, “We have achieved the promised profit turnaround in the first year of 11st's new start through relentless efforts,” and added, “All members will work together with one mind to provide customers with differentiated value of the commerce portal and to show 11st’s growth once again in 2020.”

This content was produced with the assistance of AI translation services.