SK Networks Reports Operating Profit of 123.7 Billion KRW Last Year, Up 13.1% Year-on-Year

[Asia Economy Reporter Ki-min Lee] SK Networks announced that it recorded sales of 10.6314 trillion KRW and an operating profit of 123.7 billion KRW last year. Compared to 2019, sales decreased by 18.6%, but operating profit increased by 13.1%.

In the fourth quarter of last year, SK Networks posted sales of 2.7624 trillion KRW and an operating profit of 8.4 billion KRW, marking an 18% decrease in sales compared to the same period the previous year, but a turnaround to operating profit.

SK Networks explained that it generated higher profits than in 2019 by continuously launching new products and services reflecting customer needs in mobility sectors such as SK Magic’s home care and SK Rent-a-Car.

First, SK Magic introduced products such as the Triple Care dishwasher, All Clean air purifier, and self-direct water purifier in response to the increased importance of hygiene due to COVID-19. Thanks to this, SK Magic has continuously grown, surpassing 1 trillion KRW in sales and 2 million rental accounts.

SK Rent-a-Car also improved efficiency through vehicle purchase and maintenance, insurance, and inland short-term rental services, surpassing 200,000 registered vehicles. It also launched short-term rental products for Tesla electric vehicles and announced plans to expand eco-friendly rental cars and issue green bonds to reduce greenhouse gas emissions.

In the information and communication business, although device sales declined, success was achieved in expanding the used phone recycling business and ICT lifestyle business through ‘Mintit’ and ‘April Stone,’ enhancing the completeness of social value creation models linked to business models.

Walkerhill, despite having to endure significant operating losses due to consecutive room closures and buffet suspensions, expanded customer services by launching the premium gourmet store ‘Le Passage’ and renewing and reopening ‘Myeongwol-gwan.’

SK Networks also secured investment funds for growth and improved financial soundness last year through the transfer of directly operated gas stations and Finks, as well as the sale of the Myeongdong building.

SK Networks plans to continuously strengthen growth businesses centered on home care and mobility this year, while enhancing responsiveness to non-face-to-face trends by utilizing artificial intelligence (AI) and digital transformation, and actively establishing an environmental, social, and governance (ESG) management foundation that considers society and the environment together.

An SK Networks official said, "We will upgrade execution strategies at the business unit level to overcome uncertain environments and turn them into opportunities, continuously strengthen our growth story, and strive to secure additional new growth engines to create a company that harmonizes business model innovation, corporate value enhancement, and social value creation."