Socar, Q1 Revenue 85.7 Billion KRW... 26% Increase YoY

Socar improved its profitability in the first quarter of 2023.

On the 12th, Socar announced that its sales in the first quarter reached 85.7 billion KRW, a 26% increase compared to the same period last year. Operating loss was 4.9 billion KRW, down 41% from 8.5 billion KRW last year. The operating profit margin relative to sales improved by 6.7 percentage points over one year to -5.8%.

Subsidiary sales from shared electric bicycles and platform parking services grew 273% from 1.7 billion KRW in the first quarter of last year to 6.3 billion KRW this year. The shared electric bicycle service “Illekle” recorded sales of 4.8 billion KRW, growing 546% year-on-year. The platform parking service “Modu-ui Juchajang” saw active users exceed 500,000, with sales increasing 46% over the past year.

Socar explained that despite the economic slowdown and the structural off-season in the car-sharing market, the increase in usage by customers aged 30 and above with high purchasing power, along with the cumulative number of mobility membership Passport subscribers surpassing 400,000, expanded the loyal customer base, leading to strong growth.

The average age of Socar users rose from 29.1 years in 2018 to 32.9 years in the first quarter of this year, with members in their 30s and 40s accounting for 53%. Notably, the usage rate of premium car models such as mid-to-large sedans, mid-to-large SUVs, and electric vehicles by members in their 40s exceeded that of those in their 20s and 30s by more than four times. In the first quarter, sales per Socar vehicle reached 1.68 million KRW, a 23% increase year-on-year.

The mobility platform combining KTX usage with car-sharing is beginning to be reflected in performance. The car-sharing and KTX combined product, launched at the end of last year, accounted for 7% of all Socar reservations in the first quarter, and 40% of Socar zone usage near KTX stations involved the combined product.

Targeting users burdened by rising interest rates and taxi fare increases affecting vehicle purchase and transportation costs, monthly Socar Plan contracts doubled in the first quarter. The launch of commuting-only products for office workers and active marketing contributed to sales expansion.

Socar plans to make aggressive investments to build the foundation for mid- to long-term growth, including establishing a travel platform, purchasing vehicles for new car plans, and aggressive marketing in the second quarter.

In the second quarter, a new service combining major nationwide hotel accommodation products with car-sharing will be officially launched. Various products such as car-sharing, KTX, accommodation, and activities will be combined on the Socar platform for one-stop use. Socar plans to enhance user convenience while offering various discount benefits.

Socar will significantly expand the Socar Plan focused on new cars, targeting consumers who use vehicles for more than one month.

Jae-wook Park, CEO of Socar, stated, “We will make bold and aggressive investments in new services, expanding new car plans, and marketing to secure users, aiming to achieve significant growth starting in the second half of this year.”