11st, 1Q Operating Loss of 19.5 Billion KRW... 38.7% Improvement Year-on-Year

Open Market Business Posts Profit for 2 Consecutive Months
Sales Decrease by 20.8%

11st reduced its operating loss in the first quarter of this year by about 40% compared to the same period last year.

According to the 2024 first quarter quarterly report of SK Square, the parent company of 11st, released on the 17th, 11st's operating loss for the first quarter of this year was recorded at 19.5 billion KRW. This is a 38.7% improvement from the first quarter of last year (31.8 billion KRW). With this, 11st has reduced its losses compared to the same period last year for four consecutive quarters.

11th Street CI. [Image provided by 11th Street]

The net loss for the first quarter was 20 billion KRW, a 19.4% improvement compared to 24.8 billion KRW in the same period last year. A representative from 11st explained, "Amid fierce competition with C-commerce (Chinese e-commerce) and others, we have actively pursued profitability-centered structural improvements, resulting in a significant reduction in operating losses."

However, sales recorded 171.2 billion KRW, down 20.8% from 216.3 billion KRW in the same period last year.

11st emphasized that it posted operating profits in the open market business for two consecutive months. Additionally, it recorded positive cumulative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) from January to April this year. 11st explained that expanding sales in highly profitable product categories such as groceries and fashion through vertical services and specialized sections, as well as focusing on internal strengthening such as marketing operation efficiency, were effective.

11st plans to continue focusing on vertical services and specialized sections in the second quarter. Following the launch of the ready meal vertical "Ganmyeonbapsang," the trend fashion vertical "#OOTD," and the beauty customer benefit program "Beauty Lounge" earlier this year, new vertical services will be introduced.

They will also strengthen various services that add fun to shopping, such as game-type events and short-form content, focusing on increasing customer inflow and dwell time. According to Nielsen Korean Click, the average monthly usage time of the 11st mobile app has nearly doubled (+91%) compared to the previous year.

The next-day delivery service "Shooting Delivery" is working on improving logistics center operations, and the fulfillment service for open market sellers "Shooting Seller," launched in March, will also be expanded.

Through this, 11st plans to secure competitiveness along with fundamental structural improvements by focusing on ▲ strengthening the fundamental competitiveness of e-commerce ▲ building a growth model based on steady traffic ▲ enhancing business-to-business (B2B) services, which are the foundation of its mid- to long-term strategy. The company aims to achieve profitability in the open market business this year and a company-wide turnaround including retail business by 2025.

Jeon An-jeong, president of 11st, said, "Performance improvement is gaining momentum through securing profitability in the open market business and structural improvement of the retail business," adding, "In the second quarter of this year, we plan to focus even more on strengthening profitability through focused investment in core competencies and bold business structure reorganization."

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