SK Networks Q2 Operating Profit 37.7 Billion KRW... Up 38.9% YoY

Recorded Sales of 2.1437 Trillion Won

[Asia Economy Reporter Kiho Sung] SK Networks received an improved Q2 performance compared to the same period last year through active management activities across its businesses, including its rental subsidiaries.

On the 2nd, SK Networks announced preliminary results, reporting consolidated sales of 2.1437 trillion KRW and operating profit of 37.7 billion KRW for Q2 this year. Although sales decreased by 15.7% year-on-year due to the suspension of the steel business and the waiting period for new phone launches, operating profit increased by 38.9%. Net profit for the period recorded 26.1 billion KRW, down 33.8% year-on-year, reflecting the gain from the sale of the Myeongdong building in Q2 last year.

This is attributed to solid performance generated through launching new businesses and expanding partnership services in the mobility and homecare sectors, as well as a significant reduction in losses in the hotel business due to the easing of COVID-19 impacts.

SK Rent-a-Car, which continued strong results from short-term rentals in Jeju and used car sales, introduced new services in Q2 to enhance customer convenience. It launched the industry’s first 'Polestar 2' short-term rental product, expanding customers’ electric vehicle usage categories, and also launched the O2O on-site maintenance service called ‘Smart Home Maintenance Service.’ Additionally, it strengthened its position as an eco-friendly rental mobility company by engaging in the ‘V2G (Vehicle-to-Grid) demonstration project,’ which utilizes electric vehicles as energy storage devices to help balance electricity demand and supply.

Alongside this, SK Networks officially launched the imported car management app ‘The Carpet’ in April, and the online tire and battery mall ‘TirePick’ (corporate name 'Cartini') has established itself as a new choice in the automotive aftermarket through expanded tire lineups and various events.

SK Magic continued its growth with new business entries and new model launches of key products. In May, it entered the mattress rental market by launching the bed rental and care service ‘Eco Hue,’ and in June, it introduced the country’s first ‘EcoClean Food Waste Processor’ applying dehumidification technology. It also consecutively launched new models of water purifiers, dishwashers, and induction cooktops, broadening customers’ product choices. As a result, cumulative rental accounts surpassed 2.3 million by the end of Q2.

Walkerhill saw recovery effects in its rooms and food and beverage businesses due to the easing of COVID-19 impacts, and also diversified its business by launching the ‘Walkerhill Gourmet Premium Meal Kit’ and opening the ‘Light Theater’ exhibition. Mintit strengthened co-marketing with mobile phone manufacturers and enhanced brand value by expanding cooperation with socially valuable companies such as TES, LabSD, and OpaTech. SK Networks Service received frequency allocation for the Eum 5G project promoted by the Ministry of Science and ICT, preparing for smart factory construction projects during the quarter.

In the second half of the year, SK Networks plans to closely monitor domestic and international economic and social environmental changes and continuously support the growth of its businesses and subsidiaries. It also intends to accelerate efforts for investment in promising future areas and business linkages. An SK Networks official stated, “In the first half, we generated solid results centered on rental subsidiaries while strategically investing in promising future areas such as electric vehicle charging, eco-friendly materials, and blockchain, expanding our global investment portfolio. We will continue to evolve into a ‘business-type investment company’ through ongoing new investments and business integration.”