11st, Operating Loss of 9.8 Billion KRW Last Year... Turned to Deficit

11st logo.

[Asia Economy Reporter Lim Chunhan] 11st announced on the 3rd that its sales last year reached 545.6 billion KRW, a 2.8% increase compared to the previous year. Operating loss was 9.8 billion KRW, turning from an operating profit of 1.4 billion KRW in 2019 to a loss.

Last year's fourth-quarter sales amounted to 152.2 billion KRW, a 15% increase year-on-year, with an operating loss of 2.2 billion KRW. This is the highest quarterly sales since the fourth quarter of 2018, when 11st launched as a separate subsidiary of SK Telecom.

11st explained that despite difficulties in cost control due to the unpredictable market situation caused by COVID-19 in 2020, it was able to record double-digit growth in transaction volume compared to the previous year and an operating loss close to the break-even point (BEP) through efficient marketing expenditure.

11st stated that it plans to achieve double-digit transaction growth and operating profit and loss at the BEP level simultaneously in 2021. To this end, it will continue to pursue ▲ expansion of partnerships with domestic and international businesses ▲ strengthening live commerce based on real-time communication ▲ improving delivery service quality such as same-day delivery ▲ continuous fast settlement of sales proceeds ▲ emphasizing win-win cooperation with sellers and virtuous cycle effects.

Lee Sang-ho, CEO of 11st, said, “The non-face-to-face era brought by COVID-19 has become a time for e-commerce operators to both seize growth opportunities and prove their competitiveness,” adding, “We will strive to provide a unique shopping experience through various new services such as strengthening live commerce and gift services that lead non-face-to-face consumption.”

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