11st, Open Market Posts Profit for 4 Consecutive Months... Cuts Operating Loss by 35% in First Half

2Q Operating Loss of 18.3 Billion KRW... 31.4% Improvement YoY
Sales Down 31.6%... "Avoidance of Discount Coupons and Base Effect of Direct Purchases"

11st recorded operating profit surpluses for four consecutive months (March to June) this year in its core open market business. The operating loss for the first half of the year also decreased by 35% compared to the same period last year.

According to SK Square's semi-annual report on the 14th, 11st's operating loss in the second quarter of this year was 18.3 billion KRW, down 31.4% from 26.7 billion KRW in the same period last year.

11st CI. [Image provided by 11st]

During the same period, net loss was 19.1 billion KRW, a 26.8% decrease from 26.1 billion KRW the previous year. Second-quarter sales also recorded 134.7 billion KRW, down 31.6% from 197 billion KRW in the same period last year. Regarding this, a 11st official explained, "Sales decreased somewhat due to profitability-focused product management and refraining from discount coupon events," adding, "There is also a base effect as sales surged last year when direct purchase volumes increased."

The operating loss for the first half of this year (January to June) was 37.8 billion KRW, reduced by 20.7 billion KRW compared to the same period last year, showing an improvement of over 35%. The cumulative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first half also achieved a surplus.

11st explained that it improved profitability this year through ▲expanding high-profit vertical (specialty mall) services ▲streamlining marketing operations ▲and optimizing inventory management and logistics operations focused on high-margin products in the retail business.

The number of 11st users is also on the rise. According to app and retail analysis services WiseApp, Retail, and Goods, 11st's monthly active users (MAU) last month reached 7.33 million, an increase of more than 2.9% (200,000 users) compared to the previous month.

11st plans to build continuous growth momentum in the second half of this year. It aims to increase active customers through 'targeted customized services' that provide benefits by segmenting customer groups and plans to introduce AI-based shopping communication services. The product range of major vertical services will also be expanded.

Jeon Eun, CEO of 11st, said, "Despite intensified competition in the e-commerce industry, we have achieved significant results such as consecutive operating profit surpluses in the open market business and five consecutive quarters of operating profit improvement, proving the possibility of turning the entire company profitable." He added, "In the second half, we will focus all our capabilities on 'strengthening fundamentals' with profitability improvement as the top priority and enhancing competitiveness by staying true to the essence of commerce, including products, pricing, and delivery."

Meanwhile, 11st plans to strengthen industry-leading fast settlement benefits and seller growth support programs. This comes as trust for sellers and customers has become a crucial factor following the recent unsettled payment incidents at TMON and WEMAKEPRICE (Timep). Since its launch, 11st has paid sellers 100% of settlement funds within two business days after customer purchase confirmation. For excellent sellers, it also operates a 'fast settlement' system that delivers 100% of settlement funds the day after courier pickup is completed.

An 11st official explained, "Since its establishment, 11st has never taken on debt and maintains a liquidity ratio of 81%, exceeding the Financial Supervisory Service's electronic financial business operator management guidance standard of 50% or more." He added, "It shows cash flow that meets all typical financial soundness indicators, and external audit institutions have also verified its sustainability, allowing it to operate its business stably."