11st Cuts Q1 Operating Loss to 9.7 Billion KRW, Down 50% Year-on-Year

Open Market Division Achieves 14 Consecutive Months of Operating Profit
Revenue Reaches 113.9 Billion KRW... Approximately 30% Decrease

11st significantly reduced its operating loss in the first quarter of this year, cutting it by half compared to the same period last year.

According to the quarterly report released on May 16 by SK Square, the parent company of 11st, the company posted an operating loss of 9.7 billion KRW in the first quarter of this year. This figure represents an improvement of more than 50% compared to the first quarter of last year, when the operating loss was 19.5 billion KRW. 11st has now reduced its year-on-year losses for eight consecutive quarters.

During the same period, net loss was 10.7 billion KRW, nearly a 50% reduction. The company explained that this improvement trend is the result of a shift toward profitability-focused management.

Revenue was 113.9 billion KRW, a decrease of approximately 30%. This decline was attributed to the streamlining of the direct purchase (retail) business.

In its core open market business, 11st has recorded an operating profit for 14 consecutive months since March of last year. The company explained that it has attracted customers by launching special discount sales sections such as '60-Minute Rush' and 'One Day Big Deal,' as well as introducing new promotions like 'Digital 11 Day' and 'E-Coupon Mega Day.' In addition, the company strengthened customer engagement content such as the short-form shopping content 'PLAY' and the app-based game event '11 Kitties,' which received positive responses from users.

11st plans to continue its performance improvement trend by enhancing shopping benefits. The company’s largest annual shopping festival, 'Grand 11 Day,' will be held twice this year, in May and November. Following the launch of the integrated grocery specialty store 'Mart Plus,' 11st will introduce a 'Fashion and Beauty Specialty Store' and begin strengthening its competitiveness in both grocery and fashion/beauty categories. The company also plans to add 'Mart,' 'Beauty,' and 'Digital' benefits to its free membership program.

Park Hyunsoo, CEO of 11st, said, "We are achieving meaningful improvements in profit and loss based on the open market business, which has been profitable for 14 consecutive months, and the retail business, which is undergoing operational efficiency improvements." He added, "To achieve our company-wide target of turning EBITDA positive this year, we will further strengthen our profit-generation capabilities, focusing on the open market business."