SK Networks Q2 Operating Profit 26.1 Billion KRW...13.8% Decrease YoY

[Asia Economy Reporter Ki-min Lee] SK Networks announced on the 2nd that it recorded consolidated sales of 2.5418 trillion KRW and operating profit of 26.1 billion KRW for the second quarter of this year. Sales increased by 4.4% compared to the same period last year, but operating profit decreased by 13.8%.

SK Networks explained that its core rental business subsidiaries, SK Rent-a-Car and SK Magic, showed steady growth. In particular, SK Rent-a-Car recorded increased sales and profits due to strong business performance in the Jeju region and a rise in used car resale prices.

SK Rent-a-Car introduced 'EzyDirect,' a new service that allows faster and more accurate online estimates and contracts for long-term rentals, and announced plans to establish 'SK Rent-a-Car EV Park,' the largest electric vehicle complex in Korea, in Jeju Island by 2025.

SK Magic launched new products that meet customer needs, such as the 2021 model Triple Care dishwasher, sofa-type premium massage chair, and borderless induction cooktop. It also expanded its product and customer touchpoints by signing a partnership agreement with Samsung Electronics and launching a 'Special Rental Service.'

Through these efforts, rental accounts increased by 170,000 from the same period last year, reaching 2.11 million. However, SK Networks explained that operating profit declined due to aggressive marketing expenses aimed at advertising new products and strengthening market competitiveness.

An SK Networks official stated, "Amid various challenging environments, we will strengthen ESG (Environmental, Social, and Governance) management across all our businesses and actively invest in areas with future value to enhance market trust and business competitiveness. To this end, we will continuously pursue sustainable growth by improving the completeness of our business portfolio and securing new growth momentum."