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Socar's Q1 Revenue Surges on Car-Sharing Demand, Platform Growth

Source: Socar

Seoul, South Korea — The South Korean mobility platform operator Socar (KRX: 403550) has announced that its first-quarter revenue increased by 5.7% compared to last year. 

This growth can be attributed to the robust demand for its car-sharing service and the expansion of its platform business.

Socar's revenue for the January-March period was KRW 90.6 billion (US$66.3 million), an increase of 5.7% compared to last year's KRW 85.7 billion.

Revenue from the car-sharing business increased 24.1% year-on-year, reaching KRW 83.8 billion (US$61.3 million). This growth was driven by increased demand for its on-demand and one-way car-sharing services. 

The platform business, encompassing accommodation booking, electric bike sharing, and parking, exhibited a 62.9% surge in gross merchandise volume (GMV), reaching KRW 18.4 billion (US$13.5 million).

The company indicated that its strategy to maximize the lifetime value of vehicles and users, designated as "Socar 2.0," yielded positive results. 

The company's fleet, available under the Socar Plan monthly subscription, expanded to 8,100 vehicles in the first quarter.

However, Socar incurred an operating loss of KRW 10.8 billion (US$7.9 million) in the period under review, compared to a profit in the same period the previous year. 

This was primarily due to increased marketing expenses incurred to drive growth. 

The company anticipates a notable improvement in profitability from the third quarter onwards.

In the second half of the year, Socar plans to accelerate the implementation of its mobility platform strategy by launching new services, including airport transfers and offerings tailored to foreign visitors. 

Moreover, the company plans to expand its subscriber base significantly for its Passport mobility membership.

* US$1=KRW1,367.53.

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