SK Networks 1Q Earnings, Rental Car Slump Offset by Hotels

Rental Car Sales and Profitability Slow Down... Hotel Business Booms

SK Networks recorded operating profit in the first quarter of this year at a level similar to last year. Although the performance of SK Rent-a-Car, a major revenue business slated for sale, was sluggish, the boom in the hotel business prevented a decline in overall performance.

SK Networks announced on the 13th that it posted preliminary consolidated results for the first quarter of this year with sales of 2.4769 trillion KRW and operating profit of 62.4 billion KRW, representing increases of 3.6% and 1.5%, respectively, compared to the same period last year.

In the case of SK Rent-a-Car, the main source of revenue, sales and profits decreased compared to the same period last year due to a reduction in the number of vehicles operated and used car sales. However, profitability improved in the hotel business, which helped prevent an overall decline in performance.

SK Networks explained, "At Walkerhill, following the renewal reopening of 'The Buffet' at the end of last year, the number of hotel guests and food and beverage outlet customers increased through various 'hokangs' (hotel vacations) products and spring customer events. Along with this, the recovery in overseas travel demand led to strong sales at the Incheon Airport lounge and transit hotel."

Meanwhile, SK Networks raised its regular dividend per common share from 120 KRW to 200 KRW. Following a large-scale treasury stock cancellation last year, it also canceled treasury stock worth approximately 77 billion KRW earlier this year.

SK Networks plans to accelerate the establishment of an artificial intelligence (AI)-centered business model and smoothly proceed with the sale of SK Rent-a-Car shares to strengthen financial stability. Through this, the company aims to enhance value for investors and other stakeholders and evolve into a sustainably growing enterprise.