Estrafic Reports 24.1 Billion KRW in Consolidated Sales for Q1

Estraffic announced on the 16th that it recorded sales of 24.1 billion KRW on a consolidated basis in the first quarter, an increase of 2.5% compared to the same period last year. Operating loss for the same period was 2.6 billion KRW.

The company explained that although sales increased, the decrease in operating profit is a temporary phenomenon. Sales profit declined as overseas projects related to road traffic entered their final stages. The delay in payment processing due to the progress rate of overseas railway traffic projects affected the low sales realization compared to input costs. Selling and administrative expenses also increased due to personnel recruitment for business expansion, R&D costs for railway signal solutions, and preliminary sales expenses for overseas business expansion.

Estraffic expects growth this year as well. In the road sector, starting with the recently won Busan Gwangandaegyo Smart Tolling System construction project, the company plans to expand the application of smart tolling to other large domestic bridges. In the railway sector, based on its own technology, Estraffic will actively participate in expanding domestic local government projects and future overseas projects centered on KTCS-M (Korean Urban Railway Signal System), which has obtained SIL4 (Safety Integrity Level 4, the highest safety integrity grade) certification.

An Estraffic official stated, "Although preliminary sales expenses for overseas business expansion have increased, profitability will improve significantly once the delayed payment billing process in the second quarter is completed." He added, "We plan to focus on growing corporate value to meet the expectations of shareholders and investors through comprehensive research and development and sales growth in road, railway, and aviation sectors."