Red Cap Tour achieved its highest-ever operating profit for the third quarter, driven by improved profitability in its travel business. However, sales slightly decreased due to the carryover of used car inventory.
On November 12, Red Cap Tour announced that its consolidated sales for the third quarter reached 81.4 billion won, with an operating profit of 10.5 billion won. While sales fell by 8.5% compared to the same period last year, operating profit increased by 2%.
The decline in sales this quarter was attributed to the carryover of used car sales to the fourth quarter, but improvements in vehicle rentals and travel business performance led to the highest operating profit for the third quarter in the company's history.
By segment, the rental car division reported sales of 71.3 billion won and an operating profit of 8.2 billion won, marking decreases of 10.6% and 8%, respectively, compared to the previous year.
In contrast, the travel division saw sales of 10.1 billion won and an operating profit of 2.3 billion won, representing increases of 9.5% and 65.8%, respectively, year-on-year. The operating profit margin rose by 7.7 percentage points to 22.8%.
Red Cap Tour explained that the improvement in travel performance was driven by increased demand for corporate travel due to the establishment of overseas production bases by major clients and the expansion of global operations.
For the cumulative sales in the third quarter of this year, the total reached 272 billion won, a decrease of 5.9% compared to the same period last year, while operating profit rose by 5.9% to 44.2 billion won. The one-time revenue of 14.6 billion won from the sale of the Jeju short-term rental car business last year affected the year-on-year comparison.
In Yu-seong, CEO of Red Cap Tour, stated, "Achieving the highest operating profit for the third quarter in history, despite challenging conditions such as high interest rates and fuel prices, is a result of our focus on profitability and management efficiency."
* This article has been translated by AI.
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