11st Showing Signs of Structural Improvement... Achieves Open Market Profit in March

Positive EBITDA in Q1
President Anjeong: "We will change limits and uncertainties... also launching new services"

11st's efforts to improve profitability since last year are gradually showing results.

11st announced on the 8th that it succeeded in achieving a monthly operating profit surplus in its open market business in March. Additionally, the open market's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first quarter also recorded a surplus.

11st CI. [Image provided by 11st]

At the beginning of last year, 11st introduced vertical services and specialized sections in its open market business. The fresh food specialty section, 'Sinsun Bapsang,' saw the number of products and transaction volume increase by approximately 2.2 times and 2.3 times respectively compared to its initial launch in March. The cost-effective item specialty section, '9900won Shop,' grew about 5.8 times in product count and 6.7 times in transaction volume compared to its opening.

By introducing content that customers consistently engage with, 11st reduced costs through different strategies while increasing customer visits and dwell time. The game event '11 Clover,' launched in November last year, recorded a cumulative total of 128 million accesses over five months of operation. Furthermore, the average monthly usage time per user on the 11st mobile app in the first quarter of this year increased by more than 90% compared to the same period last year.

Since May last year, 11st has been operating the price automation solution program 'Dynamic Pricing (DP)' and is integrating artificial intelligence (AI) technology into search, recommendations, and customer consultations. By commercializing insight reports using 11st's big data, such as 'AI Selling Coach,' the company is enhancing profitability.

On the 1st, An Jeong-eun, CEO of 11st, stated in a CEO letter, "Due to various external environmental changes, we will face limitations in capital and walls of uncertainty, but as CEO, I will never give up on the role of overcoming these limits and uncertainties under any circumstances." He added, "The company's survival and growth results are connected only when there is sincerity and empathy among the members. The economy is not over yet."

He also set a goal to turn the open market business into an annual profit through management efficiency. CEO An said, "Achieving a monthly operating profit surplus in the open market in March created a healthy growth trend rather than a one-time profit improvement." He continued, "While launching various new services to captivate customers, we are actively utilizing technology and shifting marketing strategy directions to achieve cost efficiency, and the saved costs are being reinvested strategically."

11st plans to continue investing in strengthening its core competencies in the second quarter and maintain its profit trend. Following the launch of 'Simple Bapsang' and '#OOTD' earlier this year, new vertical services and specialized sections will be introduced. Additionally, new services that can enhance 11st's competitiveness, including the 'Shooting Seller' launched last month, will be actively promoted.