Lotte Rental reports 39.2 percent decline in second-quarter net income

Lotte Rental said second-quarter net income fell to 18.3 billion won from 30.3 billion won in the preceding quarter and 30.1 billion won a year earlier, declines of 39.7 percent and 39.2 percent, respectively, according to a regulatory filing.

Revenue for the April-June period was 766 billion won, compared with 731 billion won in the preceding quarter and 749 billion won a year earlier, rising 4.8 percent and 2.3 percent, respectively.

Operating profit reached 84.6 billion won, versus 83.6 billion won in the previous quarter and 77.2 billion won a year before, up 1.2 percent and 9.6 percent, respectively.

Over the first six months, revenue stood at 1.5 trillion won, an increase of 4.3 percent from 1.43 trillion won in the corresponding period a year earlier. Operating profit for the six-month period totaled 168 billion won, up 16.7 percent from 144 billion won a year earlier. Net income for the six-month period was 48.6 billion won, down 18.8 percent from 59.9 billion won a year earlier.

In its analysis of results by portfolio, Lotte Rental said profit increased across every portfolio during the second quarter except the disposal of used cars.

Vehicle rental, which consists of the company's long-term and short-term rental services, accounted for 66.0 percent of Lotte Rental's total revenue in the first quarter of 2026, according to company data.

Used-car sales, another central business line for Lotte Rental, represented 27.8 percent of revenue during that first-quarter period, according to the company's published business information.

Biz Rental and other company operations accounted for 6.2 percent of revenue in the first-quarter business mix that Lotte Rental reported for 2026.

The company identifies long- and short-term vehicle rentals and used-car sales together as the central operations within its stated business portfolio.

In its Biz Rental business, Lotte Rental rents office automation equipment, measurement equipment and construction equipment, a business line operated alongside vehicle rentals and used-car sales.

Automotive leasing and installment financing are also part of Lotte Rental's operations through its subsidiary Lotte Autolease, according to the company's business description.

Lotte Rental attributed higher profitability in its long-term auto-rental business during the April-June second quarter to an increased share of high-profit products in its offering mix. The company also cited efforts to cut accident costs as a factor improving the profitability of that long-term rental business during the same reporting period.

For its short-term auto-rental operation, Lotte Rental focused on expanding operating leverage as the stated approach to improve profitability in that particular business during the quarter.

Biz Rental is concentrating on its main products as part of the portfolio strategy it is pursuing across that business operation, the company said. At the same time, the company is gradually scaling back products it classifies as noncore within the Biz Rental portfolio and product lineup.

The company said it was responding to unstable used-car market conditions by shifting its operations toward rentals, seeking to reinforce earnings from its core business. Lotte Rental attributed the instability in the used-car market to war, interest-rate increases and other factors affecting the market environment.

The Aug. 5 regulatory filing covered the three-month reporting period from April 1 through June 30 and presented Lotte Rental's consolidated financial results for that period in 2026.