11st, Q3 Operating Profit 1.4 Billion KRW... Return to Profitability After One Year

Both Transaction Volume and Sales Show Strong Performance

[Asia Economy Reporter Cha Min-young] 11st, a commerce subsidiary of SK Telecom, succeeded in a turnaround in operating performance in the third quarter, recording a quarterly profit for the first time in a year.

11st announced on the 5th that it recorded an operating profit of 1.4 billion KRW in the third quarter, successfully turning to profit compared to the previous quarter. This is the first quarterly profit since turning to a loss in the fourth quarter of last year. During the same period, sales also increased by 7.7% year-on-year and 5.8% quarter-on-quarter to 135.7 billion KRW.

An 11st official explained, “Based on the increase in transaction volume from the introduction of live commerce, Chuseok holiday promotions, and new services such as Today’s Grocery Shopping and Today’s Delivery, combined with cost improvement effects from efficient marketing strategies, both transaction volume and sales were able to grow.”

By introducing live commerce, 11st communicated with customers through real-time broadcasts and provided various information about products, complementing the shortcomings of online shopping. In addition, 11st’s Today’s Grocery Shopping service saw transaction volume increase by more than 50% compared to the second quarter following the partnership with Emart Mall, resulting in improved performance.

Lee Sang-ho, CEO of 11st, stated, “Despite changes in various market conditions and unforeseen variables, 11st has steadily strengthened products and services for customers and sellers without wavering,” and added, “The incomparable domestic shopping festival, the 11st Festival, which all members of 11st have prepared with one heart, was also successfully held, and we will achieve both external growth and profitability this year.”

Meanwhile, 11st is holding the ‘2020 11st Festival’ until the 11th. The total discount benefits provided to customers amount to 50 billion KRW, with more than 10,000 sellers participating in the 11st Festival, the largest ever.

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