Socar (403550.KS) has posted an operating profit for eight consecutive quarters, demonstrating its profitability.
The car-sharing company reported second-quarter consolidated revenue of 121 billion won ($87 million) and operating profit of 6.8 billion won, it said on the 11th. Revenue rose 23% from a year earlier, while operating profit surged 271%. The results extended Socar's streak of quarterly operating profits to eight. On a standalone basis, the company recorded revenue of 115.2 billion won, operating profit of 8.8 billion won and net profit of 9 billion won, marking a second straight quarter of net profit.
Socar attributed the improved results to new demand secured through what it called a "user-centered service investment strategy." Despite swings in global oil prices, the company maintained a policy of charging no driving fees for electric vehicles. For internal combustion vehicles, it froze the fees that apply beyond 30 kilometers of driving at pre-oil-price-increase levels, easing the cost burden on customers. As a result, car-sharing usage in the second quarter reached 13.21 million hours, up 9.3% from a year earlier. The company said that by expanding the share of EVs in its fleet since 2016, it has built a fleet structure that reduces the impact of oil price swings.
Blacklabel, a premium service launched in February, and a service offering trial rides with Tesla's Full Self-Driving (FSD, supervised autonomous driving) also supported car-sharing growth. Blacklabel is a high-end service that provides thorough vehicle condition management throughout the entire car-sharing process, from the state of the vehicle to add-on services. The number of vehicles operated under Blacklabel rose tenfold as of the second quarter compared with the start of the service, and revenue per vehicle was 61% higher than for standard car-sharing.
Socar said that including Tesla Model S and Model X, which support FSD, in the Blacklabel lineup also boosted demand for the service. Revenue from its parking platform, Modu Parking, came to 3.3 billion won, up 24% from a year earlier.
In the second half, Socar plans to focus on embedding artificial intelligence (AI), building a full-stack mobility structure, and internalizing the technology of Apex Mobility, its new autonomous-driving subsidiary. Socar has so far embedded AI across its operations, cutting overhead costs by 15%. It also plans to expand its base of new domestic and foreign users by linking with generative AI search engines. To meet vehicle demand across all age groups, the company will strengthen an asset-turnover structure that runs from car-sharing to subscriptions and used-car sales. Apex Mobility plans to operate vehicles fitted with full sensor kits as early as this year to collect high-quality training data.
Socar, which carried out its first share buyback in June, is continuing to buy back shares with the goal of fully retiring them. It is also considering announcing plans during the second half to retire all repurchased shares and to boost corporate value. CEO Park Jae-wook said, "Through a continued operational efficiency strategy, we will shift to a profit-generating structure while also making shareholder-return policies a regular practice, working to boost corporate value." He added, "In the second half, we will make our growth momentum more concrete, including by strengthening our 'full-stack mobility' service that covers vehicle demand across the entire life cycle."
