Redcap Tour Reports Operating Profit of 43.6 Billion KRW Last Year... Dividend of 2,000 KRW per Share

Redcap Tour has achieved its highest annual performance for three consecutive years.

Redcap Tour announced on the 13th that it recorded consolidated sales of 358.9 billion KRW and operating profit of 43.6 billion KRW last year. Achieving an operating profit of 40 billion KRW is a first since the company's founding. Compared to the previous year, sales and operating profit increased by 6.1% and 12.4%, respectively. Net profit for the period rose by 21.7% to 20.3 billion KRW.

Financial stability has also been strengthened. Borrowings decreased by 12.5% year-on-year from 425.3 billion KRW to 372.3 billion KRW, and the debt ratio dropped by 40.4 percentage points (P) from 263.7% to 223.3%.

By segment, annual sales in the rental car business increased by 6.2% year-on-year to 318.6 billion KRW, and operating profit rose by 15.2% to 39.4 billion KRW. Through operational strategies and cost efficiency, the operating profit margin improved by 1.0%P from 11.4% to 12.4%.

Annual sales in the travel business increased by 5.6% year-on-year to 40.3 billion KRW, while operating profit decreased by 9.1% to 4.2 billion KRW. This was due to a decline in business trip demand from major related clients in secondary batteries and petrochemicals.

In the fourth quarter of last year, sales reached 91.3 billion KRW, and operating profit was 8.4 billion KRW. Sales increased by 2.7% compared to the same period last year, while operating profit decreased by 13.5%. Rental car business sales rose by 2.9% to 81.1 billion KRW, and operating profit decreased by 1.8% to 8.7 billion KRW. The travel business recorded sales of 10.1 billion KRW and an operating loss of 0.3 billion KRW. Temporary costs related to business restructuring affected the overall fourth-quarter performance.

Redcap Tour will pay a cash dividend of 2,000 KRW per share. The dividend yield reaches 22.4%, and the entire amount is tax-exempt. In November last year, Redcap Tour announced a corporate value-up plan and, following treasury stock cancellation and a bonus issue, converted 48 billion KRW of capital reserves into retained earnings at the December extraordinary general meeting to secure tax-exempt dividend funds. The tax-exempt dividend funds of 48 billion KRW will be utilized, continuing the shareholder value enhancement policy initiated last year.

The dividend record date is the 12th of next month. In March last year, Redcap Tour amended its articles of incorporation to allow the board of directors to set the dividend record date, improving the dividend process so that investors can decide on investment after the dividend amount is determined.

In 2025, Redcap Tour will focus on strengthening business competitiveness. As a first step, the business units that were separated into rental car and travel businesses have been integrated into one and completely reorganized around client companies. Through cross-selling among major clients, promising business lines will be secured, and an all-in-one travel and rental car service will be provided for customers.

Redcap Tour CEO In Yuseong said, "Despite the difficult environment such as continued high interest rates, sustainable growth was possible through profitability-focused business development and strengthening financial stability."

He added, "Considering domestic and international conditions this year, unprecedented uncertainty is expected. To overcome the immediate challenges, we will ultimately strengthen business competitiveness through ▲customer-centric management ▲cost efficiency ▲securing service competitive advantage."

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