SOCAR announced on the 20th that its revenue for the fourth quarter of 2024 reached 122.4 billion won, a 27.3% increase compared to the previous year. Operating profit recorded 3 billion won, successfully turning from a loss of 2.7 billion won in the same period last year.
SOCAR cited the main factors for its turnaround to profitability in the fourth quarter of last year as ▲ improvement in the profitability of the car-sharing business ▲ resumption of used car sales ▲ continuous growth in the institutional sector. In particular, the resumption of used car sales, which had been deferred since the fourth quarter of 2023 under the "SOCAR 2.0" strategy, greatly increased revenue in the used car sector from 400 million won in the same period last year to 18.6 billion won.
Annual revenue for 2024 grew by 8.4% to 431.7 billion won. Revenue in the car-sharing sector rose by 12.6% to 371.1 billion won, driving the growth. Revenue in the institutional sector increased by 30.6% to 40.5 billion won. Operating losses remained at a similar level to the previous year at 9.8 billion won.
SOCAR has been flexibly operating short-term car-sharing and monthly rental SOCAR plans under its "SOCAR 2.0" strategy to maximize the lifetime value of vehicles and users. Short-term car-sharing improved profitability alongside revenue growth, with the company's gross profit margin improving by 1 percentage point to 19.4% last year. Revenue from the monthly rental SOCAR plan surged by 70.8% compared to the previous year, surpassing 30 billion won.
As demand for short-term car-sharing and the SOCAR plan grew, the average vehicle retention period increased from under three years to four years, significantly enhancing the profitability of the used car sales that resumed in the fourth quarter. The lifetime gross profit per vehicle sold grew by 35.2% compared to 2022, maximizing improvements in car-sharing profitability and gains from used car sales.
Convenience services such as call and one-way options also boosted revenue and profitability. The revenue per transaction for call and one-way services increased their utilization share by about 10 percentage points in the fourth quarter of 2024 compared to the first quarter of 2023, accounting for 25% of all SOCAR reservations. Customers who previously used round-trip services increased their usage by about 33% after trying call or one-way services. This improvement in convenience appears to have contributed to strong customer retention.
The platform business also showed growth. The online parking platform, Every Parking, maintained a high average growth rate of 36% per year based on the expansion of partnered parking lots. SOCAR Electric surpassed 30 billion won in revenue, nearly tripling compared to 2022, due to increased demand for electric bicycles and the expansion of its franchise business.
CEO Park Jae-wook noted, "2024 was a meaningful year in which the profitability of the car-sharing business improved significantly and the growth of the institutional sector accelerated," adding, "In 2025, we aim to achieve a meaningful annual operating profit turnaround through asset operation efficiency and improvements in user convenience."