Redcap Tour Reports Operating Profit of 20.5 Billion KRW Last Year, Up 1.9% Year-on-Year

[Asia Economy Reporter Kiho Sung] Redcap Tour has achieved operating profits in the 20 billion KRW range for two consecutive years.

According to industry sources on the 11th, Redcap Tour recorded an operating profit of 20.5 billion KRW last year based on consolidated financial statements, marking a 1.9% increase compared to the previous year. During the same period, sales decreased by 0.2% to 228.9 billion KRW, but net income rose by 9.0% to 12.1 billion KRW.

The company explained that this performance demonstrates management stability considering the travel industry's crisis due to the prolonged COVID-19 pandemic.

By business segment, rental car sales increased by 0.5% year-on-year to 217 billion KRW. Despite a decrease in used car sales revenue caused by delays in new car deliveries due to the shortage of automotive semiconductors, long-term rental contracts increased, driving sales growth.

Travel business sales amounted to 11.9 billion KRW, down 12.3% from the previous year. The company attributed this to the unprecedented COVID-19 pandemic that lasted fully for one year. On the other hand, operating losses decreased by 39.9% year-on-year, significantly reducing losses through operational efficiency improvements pursued since 2020.

Last year, Redcap Tour signed strategic business agreements (MOUs) with companies such as Douzone Bizon and Daou Technology, expanding the distribution of its business trip management solution (BTMS) by linking it with partner platforms. The company explained that this move toward 'digital transformation' of business through automation, data analysis, and artificial intelligence is a step to prepare for the 'post-COVID' era beyond the with-COVID phase.

Inyuseong, CEO of Redcap Tour, said, "Since its listing in 2007, Redcap Tour has maintained profitability every year even amid the COVID-19 pandemic, realizing sustainable management. This year is especially meaningful as it marks the 45th anniversary of the travel business and the 25th anniversary of the rental car business, and we plan to accelerate securing future growth engines through digital transformation and eco-friendly strategies."

Meanwhile, Redcap Tour announced that it plans to pay a cash dividend of 600 KRW per common share as a year-end dividend. The total dividend amount is approximately 4.9 billion KRW, with a dividend yield of 2.9%. Including interim dividends, the annual dividend per share is 800 KRW, a 33% increase compared to the previous year.

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