Skip to content

Socar Q2 2023: 14.1% Revenue Growth, New Services Launch

Source: Socar

Seoul, South Korea - Socar (KRX: 403550) has announced its Q2 2023 earnings results.

Why It Matters:

Socar's Q2 2023 earnings report highlights significant developments within the company, reflecting growth trends in the mobility industry.

The details provide an insight into Socar's performance and strategy, which can interest investors, strategists, and tech analysts.

The Key Points

1. Revenue and Operating Profit:

  • Revenue: Increased by 14.1% year-on-year to KRW 103.9 billion (US$ 78.8 million) in Q2, marking the first time quarterly revenue surpassed KRW 100 billion.
  • Operating Profit: Rose 14.6% to KRW 1.6 billion (US$ 1.2 million), rebounding from a loss in Q1.

2. Efficiency and Profitability:

  • Artificial Intelligence (AI): Utilization led to a 13.7%p drop in variable costs to revenue ratio.
  • Economies of Scale:** Helped improve profitability.
  • Monthly Revenue Per Vehicle: Increased by 15% to KRW 1.81 million (US$ 1,372).

3. New Services and Partnerships:

  • Socar Stay and Socar Pay: Established and quickly gaining traction.
  • Platform Partnership with NAVER: Expected to generate over 20% additional transaction value over the next two years.

4. Passport Membership Program:

  • Surpassed 500,000 Subscribers: Benefits include significant discounts and incentives.
  • Increased Usage: Passport members make more than four times as many trips as regular users.

5. Expanding Services and Strategy:

  • 117% Increase: In users booking KTX tickets and car sharing.
  • Socar Pay: Surpassed 20% of the payment volume, with 100,000 users changing their payment method within a month.
  • SocarStay: Transaction volume exceeded KRW 1 billion (US$ 758,000) within a month of launch.
  • Micro-Mobility and Parking Platform Revenue: Grew 138% in one year to $9.5 billion.

The Big Picture:

Socar's Q2 report illustrates the company's revenue growth, efficiency improvements, and expansion into new services and partnerships.

This includes leveraging AI technology, enhancing supply efficiency, and investing in integrations and one-way services.

  • Supply Efficiency Strategy: Reducing the mismatch between supply and demand of carsharing vehicles.
  • Q3 Integration: Shared e-bike service, elecle, into the Socar app.
  • Expanding One-Way Service: Enhancing user convenience and demand base.

The information outlines the company's trajectory and plans without suggesting any particular stance on the part of the company's future success or alignment in the market.