Redcap Tour, 3Q Operating Profit 4.4 Billion KRW... "Expectations for Travel Business Recovery"

[Asia Economy Reporter Park So-yeon] Redcap Tour announced on the 21st that its provisional consolidated sales for the 3rd and 4th quarters reached 52.8 billion KRW, with an operating profit of 4.4 billion KRW. Compared to the same period last year, sales decreased by 7.3% and operating profit fell by 33.3%.

The slowdown in performance is attributed to a decrease in used car sales. Sales from used car sales in the 3rd and 4th quarters amounted to 12.4 billion KRW, down 31.5% from the same period last year.

Revenue from the rental car business, including used car sales, was 50.3 billion KRW, down 8.3% year-on-year, and operating profit was 6.3 billion KRW, a decrease of 40.1%. Most of the used cars sold by Redcap Tour are vehicles whose long-term rental contracts have expired, but the number of vehicles available for sale decreased in the 3rd quarter.

Redcap Tour explained, "Due to the shortage of semiconductors for vehicles causing delays in new car deliveries, there has been an increase in cases where existing contracts are extended instead of replacing vehicles with new ones at the time of contract renewal."

The travel business, which had been depressed due to COVID-19, continued its performance growth following the 2nd and 4th quarters.

In the 3rd and 4th quarters, the travel business recorded sales of 2.5 billion KRW and an operating loss of 1.9 billion KRW, reducing the deficit by 51% compared to the same period last year.

As With Corona (gradual return to normal life) approaches, major domestic companies have announced policies to expand overseas business trips and have begun normalizing operations. Redcap Tour’s major clients have also relaxed restrictions on overseas business trip approvals and resumed overseas business trips for essential personnel, including conducting recruitment events abroad.

Redcap Tour is strengthening platform partnerships to expand the distribution of its business trip management solution, BTMS4.0.

Last month, it signed a strategic business agreement (MOU) with Dowoo Technology, a leading domestic business platform company, and is currently integrating business trip management services. It is also increasing contracts with new clients as dedicated travel agencies for business trips.

A Redcap Tour official said, "Expectations for the recovery of the travel business have grown stronger than ever."

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