Redcap Tour Reports Q2 Sales of 94.8 Billion KRW and Operating Profit of 13.5 Billion KRW

Redcap Tour announced on August 7 that it recorded consolidated sales of 94.8 billion KRW and operating profit of 13.5 billion KRW in the second quarter of this year. These figures represent increases of 5.0% and 11.0%, respectively, compared to the same period last year. Recurring profit and net profit were 9.5 billion KRW and 7.5 billion KRW, respectively, marking year-on-year increases of 20.1% and 19.8%.

The company explained that this was the highest second-quarter performance in its history. Considering that the largest volume of used car sales in the rental car business typically occurs in the first quarter, Redcap Tour assessed that it has continued its growth momentum.

Profitability improved as the company strengthened its business competitiveness through the integration of business divisions and the establishment of a new dedicated sales organization, while focusing on efficient cost management. In the second quarter, Redcap Tour's operating margin was 14.3%, up 0.8 percentage points (P) from the same period last year. The cumulative operating margin for the first half was 15.7%, and the recurring profit margin was 11.6%, representing increases of 2.0 percentage points and 2.9 percentage points, respectively, compared to the first half of last year.

By business segment, the rental car division recorded second-quarter sales of 84.2 billion KRW and operating profit of 11.0 billion KRW, up 5.3% and 8.0%, respectively, year-on-year. The company expanded its B2B and B2G (government and public institution) client base and actively responded to government eco-friendly policies by continuously increasing the proportion of eco-friendly vehicles, focusing on electric vehicles.

Providing differentiated services such as integrated corporate vehicle mobility services (RMS) and EV battery management solutions (B-Lifecare) played a key role in enhancing the efficiency and reliability of vehicle operations.

The rental car business environment is improving, with funding costs decreasing due to lower benchmark interest rates and used car prices rising. The company expects to continue its growth in the second half of the year through enhanced expertise via the new dedicated sales organization and cross-selling resulting from business division integration.

In the travel business, second-quarter sales reached 10.6 billion KRW and operating profit was 2.5 billion KRW, representing increases of 2.9% and 26.1%, respectively, compared to the same period last year. Despite an economic downturn and decreased business travel demand from major clients, the company expanded its client base by segmenting the needs of strategic target customers and enhancing the service level of its business travel management system (BTMS), adopting a customer-tailored approach. Efficient cost management also contributed to improved performance.

Sales through AMEX GBT (Global Business Travel), a strategic alliance partner, also increased. Following global mergers and acquisitions, AMEX GBT consolidated its previously dispersed domestic partnerships with Redcap Tour this year. The transfer of client accounts was completed in May. In the second half of the year, the company expects the synergy from collaboration with AMEX GBT to be fully realized and anticipates a recovery in travel business performance, driven by increased B2G travel demand as domestic conditions stabilize.

Redcap Tour's interest expenses in the second quarter of this year were at their lowest in nine quarters. The return on equity (ROE), which was 9.6% last year, rose to 12.6% over the past four quarters, increasing the company's investment appeal. On August 1, Redcap Tour paid an interim dividend of 300 KRW per common share. The total dividend amounted to 5.0 billion KRW, with a dividend yield of 2.4%.

Chief Executive Officer In Yoosung stated, "The first half of this year was a period focused on strengthening business competitiveness and establishing an efficient operational structure." He added, "Going forward, we will continue to develop a profitability-centered business as a B2B and B2G specialized service company to lay the foundation for sustainable growth, and we will strive to enhance shareholder returns and corporate value."

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