RedcapTour Achieves Record Second-Quarter Results with Operating Profit of 15.7 Billion Won

RedcapTour Co., Ltd. (038390) announced on August 6 that it achieved its highest-ever second-quarter performance, posting consolidated sales of 98.2 billion won and operating profit of 15.7 billion won in the second quarter of this year.

Sales increased by 3.6% year-on-year, while operating profit rose 16.3%. Ordinary profit was 11.5 billion won, and net income reached 9.1 billion won, representing increases of 20.3% and 22.2%, respectively, compared to the same period last year.

The company explained that despite geopolitical uncertainties in the Middle East, it improved profitability by expanding its customer base through a stable focus on corporate (B2B) and government/public institution (B2G) clients, as well as integrated marketing strategies for travel and rental car businesses. As a result, the operating margin rose from 14.3% in the same period last year to 16.0% this year.

The car rental division recorded sales of 87.2 billion won and operating profit of 13.2 billion won. Sales grew 3.6% year-on-year, and operating profit increased by 19.7%. The operating margin also rose by 2.0 percentage points to 15.1%.

The company secured more contracts by implementing a customized operational strategy aligned with the increased adoption of eco-friendly vehicles by government and public institutions. As of the end of the second quarter this year, electric vehicles accounted for 19.1% of the rental fleet, up from 16.3% a year earlier. In addition, the company boosted profitability not only by meeting client vehicle replacement demands but also by selling used cars through a variety of channels such as auctions, tenders, retail consignment, and transfers.

The company stated that it is enhancing customer satisfaction by offering integrated mobility services based not only on vehicle supply, but also through its ‘RMS (Redcap Mobility Service)’ for fleet management and the ‘B-Lifecare’ electric vehicle battery management solution.

The travel business recorded sales of 11.0 billion won and operating profit of 2.6 billion won, up 3.9% and 1.8%, respectively, year-on-year. While some group events were cancelled due to the aftermath of the war in the Middle East, results continued to grow thanks to the increasing demand for overseas business trips from industries such as semiconductors, K-culture, K-beauty, and K-food.

Collaboration with strategic partner American Express Global Business Travel (AMEX GBT) also contributed to improved performance. The company expects the integrated effect of its domestic partnership with AMEX GBT to be fully reflected in the second half, and for group events cancelled in the first half to resume, projecting a continued upward trend for the travel business.

RedcapTour is strengthening its competitiveness through tailored business travel management services and a global network, while also driving digital transformation by introducing an AI-based chatbot and advancing its Business Travel Management System (BTMS). In June, it became the first player in the domestic travel industry to obtain SBTi (Science Based Targets initiative) approval for its greenhouse gas reduction targets, thereby bolstering its ESG management.

Yuseong In, CEO of RedcapTour, stated, “Even in a challenging business environment marked by high oil prices, exchange rates, and interest rates, we have maintained stable growth through customer-centric strategies and differentiated services. We will continue to strengthen our competitiveness in integrated mobility and travel management services, provide a differentiated customer experience through AI-driven digital innovation, and do our utmost to enhance shareholder value.”

Meanwhile, RedcapTour conducted a quarterly dividend of 300 won per share, totaling 5.0 billion won, in July. The company plans to continue its shareholder return policy based on improved performance.

This outstanding performance is attributed to steady growth in the car rental and travel businesses, the expansion of eco-friendly vehicles, and rising demand for corporate business travel, resulting in both enhanced profitability and greater shareholder returns.

This content was produced with the assistance of AI translation services.