Socar: Q4 2024 Revenue ₩122.4B, Operating Profit ₩3B; Posts Second Consecutive Quarter of Profit

Socar successfully turned a profit for the second consecutive quarter, following the third quarter, by recording sales of 122.4 billion won (a 27.3% increase year-on-year) and an operating profit of 3 billion won in the fourth quarter of 2024. This marks a clear improvement in performance, moving away from an operating loss of 2.7 billion won in the same period last year. The main drivers of this turnaround were ▲strengthening the profitability of the car-sharing business ▲resuming used car sales ▲and the consistent growth of the platform division. In particular, with the 'Socar 2.0' strategy, used car sales, which had been deferred since the fourth quarter of 2023, fully resumed in the fourth quarter, leading to a significant increase in revenue for this segment from 400 million won in the same period last year to 18.6 billion won. Looking at the annual performance for 2024, total revenue grew by 8.4% year-on-year to 431.7 billion won. The car-sharing segment drove this growth with a 12.6% increase to 371.1 billion won, while the platform segment recorded a sharp 30.6% surge to 40.5 billion won, continuing its rapid growth. Although the annual operating loss was 9.8 billion won, similar to the previous year, the successful turnaround in the fourth quarter raises expectations for future profitability improvements. Socar has flexibly managed the inventory for short-term car sharing and its monthly rental car service 'Socar Plan' through its 'Socar 2.0' strategy, which focuses on 'maximizing the lifetime value (LTV) of vehicles and users.' As a result, short-term car sharing achieved a gross profit margin of 19.4%, a 1 percentage point improvement, and Socar Plan's revenue surged by 70.8% compared to last year, exceeding 30 billion won. As the average vehicle ownership period increased from less than 3 years to 4 years, the profitability of used car sales, which resumed in the fourth quarter, also significantly improved. The lifetime gross profit per sold vehicle grew by 35.2% compared to 2022, maximizing the synergy between the car-sharing business and used car sales. Convenience services also contributed to increased revenue and profitability. 'Booreum' (delivery/on-demand) and 'One-Way' services, which generate high revenue per instance, accounted for 25% of all bookings in Q4 2024, with their usage increasing by approximately 10 percentage points. Customers who used these services showed an approximately 33% increase in usage compared to those who only used the traditional round-trip format, positively impacting the acquisition of premium customers. The platform business also showed notable performance. The online parking platform 'Modoo-ui-Parking Lot' grew by an average of 36% annually, solidifying its position as the largest parking platform in Korea. The electric bicycle service 'Socar Elecle' showcased its growth, with revenue more than tripling compared to 2022, exceeding 30 billion won. Socar plans to focus on improving profitability and securing new growth engines in 2025. It plans to strengthen the virtuous cycle of vehicle inventory between short-term car sharing and Socar Plan, expand annual long-term products for Socar Plan, launch a 'Booreum' service with a lead time of less than 2 hours, and intensify its penetration of the B2B car-sharing market. Park Jae-wook, CEO of Socar, stated, "2024 was a significant year where the profitability of the car-sharing business genuinely improved and the growth of the platform segment accelerated." He further expressed his ambition, saying, "In 2025, we will achieve an annual operating profit turnaround by optimizing vehicle asset management and enhancing user convenience."