Redcap Tour, 2Q Operating Profit 6.6 Billion KRW... Up 76.7% YoY

[Asia Economy Reporter Park So-yeon] Redcap Tour continued its steady performance growth in the second quarter following the first quarter.

Redcap Tour announced on the 29th that its consolidated sales for the second quarter reached 59.4 billion KRW, and operating profit was 6.6 billion KRW, representing increases of 12.0% and 76.7% respectively compared to the same period last year.

Ordinary profit and net profit for the period were 5.1 billion KRW and 4.0 billion KRW respectively, both increasing by 136.3%.

The rental car business drove the performance, while the travel business reduced its loss margin.

Sales from the rental car business amounted to 56.7 billion KRW, up 9.3% year-on-year, and operating profit increased by 31.3% to 8.5 billion KRW.

The operating profit margin improved by 2.5 percentage points from the same period last year, reaching 15.0%.

Increased vehicle rental contracts and used car sales led to higher sales, and profitability improved in used car sales and the short-term rental sector in Jeju Island, resulting in a significant increase in operating profit.

In the second half of the year, the rental car business is expected to maintain a solid performance trend as strong used car prices and an increase in travelers to Jeju Island are projected to continue.

Additionally, Redcap Tour expanded its service scope to include all subscription vehicles from Hyundai Motor Company by adding 'Hyundai Selection' in June this year, following its entry into the mobility subscription service market last year with 'Genesis Spectrum.'

Having laid the foundation for volume expansion in the rental car business, stable profit generation through securing loyal customers is also anticipated.

The travel business recorded sales of 2.7 billion KRW and an operating loss of 1.9 billion KRW in the second quarter, reducing the deficit by 29.6% compared to the same period last year.

Although the full recovery of overseas business trip demand has been delayed due to the fourth wave of COVID-19, sales increased thanks to the operation of charter flights and MICE events.

Since cost-cutting measures were implemented last year under emergency management, losses in the travel business are expected to decrease significantly this year compared to last year.

Recently, Redcap Tour announced that it has completed the first phase of development of the industry's first 'AI (Artificial Intelligence) Travel Consultant' and will apply it to client business trip operations.

Through 'Digital Transformation,' a key topic across industries, the company is aiming to expand its travel business in the post-COVID-19 era.

Redcap Tour also announced a mid-term dividend of 200 KRW per share.

The total dividend amount is 1.64 billion KRW, and based on the stock price at the end of the half-year, the dividend yield is 0.7%.

Although the mid-term dividend was temporarily suspended last year due to COVID-19, it has been resumed this year based on confidence in performance, demonstrating shareholder returns.

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