SK Square subsidiary 11Street announced on the 16th that it recorded an operating loss of 9.7 billion won on a consolidated basis in the first quarter. This figure represents an improvement of about 50% compared to the same period last year (19.5 billion won). During the same period, the net loss was 10.7 billion won, a decrease of about 50%, while revenue was 113.9 billion won, a decrease of 30%. The decrease in revenue is attributed to the efficiency measures in the retail (direct purchase) business.
By institutional sector, the open market sector continued its operating profit streak for 14 months from March of last year to April of this year. 11Street is strengthening its profitability-focused operational strategy and pushing for structural improvements.
In the first quarter, it operated ultra-low price events such as "60-minute rush" and "one-day big deal" tailored to consumer needs and conducted large-scale promotions like "Digital 11Day" and "E-Coupon Mega Day." The short video-based content "PLAY" transitioned to an open platform, achieving approximately 40 million cumulative views, and the customer participation event "11Kidz" exceeded a cumulative access of 150 million. The free membership introduced at the end of last year secured 700,000 subscribers as of the end of April.
The delivery service "Shooting Delivery" established a "7-day delivery" system by introducing same-day delivery on weekends since February. The number of application (app) users continued to increase. According to mobile index data, it ranked second in the industry's monthly active user (MAU) count in both the first quarter and April.
To continue the trend of performance improvement, 11Street plans to hold its largest shopping event of the year, "Grand 11 Day," in May following the usual November event, and strengthen the competitiveness of key categories such as "Mart Plus" and "Fashion and Beauty Specialty Sections."
Park Hyun-soo, president of 11Street, noted, "The improvement in profits is continuing based on the open market business, which has maintained profitability for 14 months, and the efficiency of retail operations. This year, we aim to achieve overall positive EBITDA (earnings before interest, taxes, depreciation, and amortization) and will continuously strengthen our revenue structure."