Red Cap Tour achieved its highest-ever quarterly performance in the second quarter, driven by improved profitability in its rental car business and a recovery in corporate travel demand.
On August 6, Red Cap Tour announced that its consolidated revenue for the second quarter reached 98.2 billion won, with an operating profit of 15.7 billion won. This represents a 3.6% increase in revenue and a 16.3% rise in operating profit compared to the same period last year. Net profit also grew by 22.2% to 9.1 billion won.
The rental car segment was the main contributor to this performance improvement. In the second quarter, rental car revenue was 87.2 billion won, up 3.6% year-on-year, while operating profit rose by 19.7% to 13.2 billion won. The operating profit margin increased by 2 percentage points to 15.1%. Red Cap Tour attributed this success to a tailored operational strategy aligned with the government's push for eco-friendly vehicle adoption.
The travel business also continued its solid growth. Revenue for the second quarter was 11 billion won, reflecting a 3.9% increase, while operating profit grew by 1.8% to 2.6 billion won. Although some group events were canceled due to the impact of the conflict in the Middle East, increased demand for overseas business trips from major companies in sectors like semiconductors helped maintain performance.
Looking ahead, Red Cap Tour plans to enhance its digital services, including the development of an AI chatbot and an upgraded Business Travel Management System (BTMS). The company aims to sustain its growth by securing corporate travel demand and rescheduling group events that were canceled in the first half of the year.
Inyu-seong, CEO of Red Cap Tour, stated, "Despite the challenging business environment characterized by high oil prices, exchange rates, and interest rates, we have been able to achieve stable growth through customer-centric business strategies and specialized services. We will enhance the competitiveness of our integrated mobility and travel management services to increase shareholder value."
* This article has been translated by AI.
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