11st, Q1 Sales and Operating Profit Both Decline

[Asia Economy Reporter Cha Min-young] Despite an increase in transaction volume, 11st recorded sluggish sales and operating performance due to changes in accounting standards and the impact of the novel coronavirus disease (COVID-19).

According to SK Telecom's disclosure of operating results on the 7th, 11st's sales for the first quarter of this year amounted to 129.3 billion KRW, down 9% from 142.5 billion KRW in the previous year. Operating loss for the same period was recorded at 4.8 billion KRW.

The decrease in sales was largely due to accounting sales deductions reflected by 11st's shift in customer benefit provision methods and the strategic reduction of inefficient direct purchase businesses. Additionally, transaction volumes declined in many sectors such as leisure, fashion, and travel due to the impact of COVID-19.

However, 11st plans to maintain a profitable trend for the full year following last year.

Accordingly, in the second quarter, they secured an optimized product lineup in response to the surge in online demand and strengthened delivery services. Along with expanding partnerships with numerous domestic and international businesses, they intend to maintain an efficient cost execution policy. In particular, they expect demand to recover in sectors such as leisure, fashion, beauty, and travel, which were suppressed during the COVID-19 pandemic.

Lee Sang-ho, CEO of 11st, stated, “The goal of 11st to return to profitability in 2019 was an achievement made with the determination to become a trusted business by customers despite fierce competition,” and added, “Although 2020 will be another challenging year, we will leverage 11st’s unique differentiation by providing the value of fun, information, and participation in shopping to achieve both external growth and stable financial performance.”

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