Impact of Smooth Sailing for Walkerhill and SK Magic
SK Networks' operating profit in the second quarter of this year showed double-digit growth compared to the same period last year. This was due to improved performance of subsidiaries such as SK Magic and Walkerhill.
On the 12th, SK Networks announced preliminary results for the second quarter of this year, reporting consolidated sales of 1.69 trillion KRW and operating profit of 29.1 billion KRW. These figures represent increases of 0.6% and 14.8%, respectively, compared to the same period last year. Net profit for the same period was recorded at 21.2 billion KRW, up 115.3%.
Although sales growth was modest, operating profit increased thanks to improved profitability at SK Magic and Walkerhill.
In the case of SK Magic, new products with competitive advantages in technology and design, such as ultra-compact direct water purifiers and one-cork ice water purifiers, were continuously introduced, garnering positive customer response. Cost efficiencies in selling, general and administrative expenses as well as advertising expenses also contributed.
Walkerhill increased room and food and beverage sales through services that enhance customer satisfaction, such as monthly packages, Harrington Car Driving, and Early Summer products. Additionally, performance was seen in the Incheon Airport lounge and transit hotel due to expanded demand for overseas travel.
The comprehensive automobile management brand Speedmate also reported improved profits through strong maintenance business and increased efficiency in parts export operations.
SK Networks is restructuring its business portfolio to transition to an artificial intelligence (AI)-centered business model. A representative example is the decision made at the board meeting in June to transfer its subsidiary SK Rent-a-Car to Affinity Equity Partners for 820 billion KRW. Furthermore, Speedmate and the trading division will be spun off through physical division. Through this, SK Networks plans to evolve into an AI company as a financially stable intermediate holding company.
In addition, following the cancellation of treasury shares worth approximately 77 billion KRW earlier this year and the increase of regular dividends to 200 KRW, the company has decided to implement an interim dividend of 100 KRW (common stock) this time.
An SK Networks official stated, "We have established 'Phoenix Lab,' an expert organization to implement and support an AI-centered business model, and are developing AI-based services for each business, including SK Magic and Walkerhill. Through internalizing AI capabilities and integrating AI into our existing businesses, as well as investment cooperation with advanced technology companies, we will further refine our future growth strategy."
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