Lotte Rental said in a filing on the 5th that, on a consolidation basis, it is tentatively estimated to have posted revenue of 765.8 billion won and operating profit of 84.6 billion won in the second quarter of this year.
According to the Financial Supervisory Service's electronic disclosure system, Lotte Rental's revenue rose 2.3% and operating profit increased 9.6% from a year earlier. Net profit was 18.2 billion won, down 39.2% from a year ago.
Lotte Rental's revenue this time was the highest ever for a second quarter, and operating profit was the second highest on record. Lotte Rental said performance improved as utilization of long- and short-term rental cars increased and the share of high-margin products expanded.
By business segment, the long-term rental car segment posted second-quarter revenue of 421.5 billion won and operating profit of 45.3 billion won. Those were up 5.1% and 25.6%, respectively, from a year earlier. The number of vehicles put into service, combining new and used cars, increased 11.6% to 23,607. Net additions expanded 59.1% to 5,095.
The share of used-car long-term rentals with high profitability steadily rose from 14.1% in the second quarter of 2024 to 17.9% in the second quarter of last year and 20.6% in the second quarter of this year. Per-vehicle accident costs also continued to decline, producing simultaneous effects of product portfolio improvement and cost reduction.
The short-term rental car segment also improved its performance. Second-quarter revenue was 52.5 billion won, up 15.6% from a year earlier, and operating profit was 9.9 billion won, up 76.2%. In particular, Lotte Rental said performance improved as the share of foreigners in daily short-term rental sales expanded to 37%.
The used-car disposal business recorded revenue of 217.1 billion won and operating profit of 26.4 billion won due to market uncertainty from global geopolitical conditions and rising interest rates. Those fell 2.9% and 21.1%, respectively. Revenue in the used-car retail business rose 108.8% to 30.9 billion won.
Lotte Rental plans to further expand its business through the Japan rental car business, which begins in earnest in the second half. Lotte Rental established a local subsidiary in Japan in July and, partnering with Orix Auto, the No. 2 player in Japan's rental car industry, began short-term rental services for Korean travelers.
Chief Executive Choi Jin-hwan of Lotte Rental said, "In the second quarter as well, core businesses such as long- and short-term rentals grew solidly, confirming that profitability centered on the rental core business continues to improve."