11Street cuts operating losses by 31% in Q2

11Street Co. CI

South Korea’s 11Street Co. reported a 31.4 percent reduction in its operating loss for the second quarter of 2024 on Wednesday, which fell to 18.3 billion won ($13.4 million) from 26.7 billion won in the same period during the previous year. This is the e-commerce platform’s fifth consecutive quarter of reduced losses.

Quarterly revenue was 134.7 billion won, a 31 percent decline, but net loss also decreased by 26.8 percent to 19.1 billion won. Revenue was down 26 percent at 305.9 billion won for the first half of the year, while the operating loss was reduced by over 35 percent to 37.8 billion won, reflecting efforts to enhance profitability via internal improvements.

The company reported notable gains in its core open market segment, which saw operating profit for four consecutive months from March to June 2024. It also saw positive earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of the year, indicating a solid revenue trend. These improvements were thanks to the company’s expansion of high-margin specialty stores, optimization of logistics and marketing operations, and effective inventory management in high-profit retail sectors.

11Street plans to focus on securing growth drivers and refining its business structure in the second half of 2024. The company plans to boost active customers with personalized services, introduce artificial intelligence-driven shopping tools for added convenience, and expand product categories in key specialty areas to enhance competitiveness.

“We will continue to prioritize improving profitability in the second half of the year by strengthening our internal capabilities and increasing competitiveness in key areas,” Chief Executive Officer Ahn Jung-eun said.