Socar (KRX: 403550) posted a 26% year-on-year increase in Q1 revenues to KRW 85.7 billion ($64.3 million), a significant jump from KRW 68.1 billion in the same period last year.
The company attributes this robust performance to a surge in loyal customers and an increase in average price, even during the low season for car sharing.
The company's operating loss decreased 41% to KRW 4.9 billion, significantly improving from KRW 8.5 billion in the previous year.
The operating margin improved by 6.7 percentage points to -5.8% of sales.
Socar's subsidiaries, including its shared e-bike and platform parking services, posted a remarkable 273% increase in sales to KRW 6.3 billion, up from KRW 1.7 billion in the previous year's first quarter.
In addition, the shared e-bike service "Elecle" saw a 546% year-on-year increase in revenue to KRW 4.8 billion, and Modu Parking, a platform parking service, grew 46% year-on-year as the number of active users exceeded 500,000.
The company highlighted the growing base of customers aged 30 and above, who have higher purchasing power despite the economic slowdown and the structural low season in the car-sharing market.
As a result, the average age of Socar users escalated from 29.1 years in 2018 to 32.9 years in the first quarter of this year, with more than half of members in their 30s and 40s.
In addition, revenue per Socar jumped 23% year-on-year to KRW 1.68 million in the first quarter.
Socar's integration of KTX usage with car sharing has started to pay off, with 7% of all Socar bookings in Q1 involving this combined product.
In addition, the company's strategic focus on affordable commuting options for office workers and proactive marketing also contributed to revenue growth.
Looking ahead, Socar is planning an aggressive investment strategy to build a solid foundation for medium to long-term growth.
This includes developing its travel platform, procuring vehicles for new plans, and increasing marketing efforts.
In Q2, Socar is investing aggressively to build the foundation for medium- to long-term growth, including building its travel platform, purchasing a new fleet of planned vehicles, and aggressive marketing.
As Socar continues to invest in new services and innovative marketing strategies, the company expects significant growth starting in the second half of this year.
US$1=KRW1,332.79
