2024 First Half Earnings Announcement
Increasing Cash and Enhancing Financial Soundness
Partial Improvement in Portfolio Company's Performance
SK Square reported consolidated results for the first half of this year with sales of 966.8 billion KRW and operating profit of 1.0986 trillion KRW, marking a significant increase in profits compared to the previous year. Riding on improved performance, the company expressed its intention to actively enter future promising industries by securing funds for semiconductor investments.
On the 13th, SK Square announced that its consolidated results for the first half of this year recorded sales of 966.8 billion KRW, operating profit of 1.0986 trillion KRW, and net profit of 1.0621 trillion KRW.
Compared to the first half of last year, which posted sales of 1.1198 trillion KRW, operating loss of 1.3735 trillion KRW, and net loss of 1.2278 trillion KRW, the company turned profitable.
SK Square explained that in the second quarter, the performance of portfolio companies such as SK Hynix greatly improved, resulting in equity-method income of 824.7 billion KRW being reflected in the consolidated results.
As of the end of June, on a consolidated basis, assets stood at 19.0065 trillion KRW and liabilities at 2.0882 trillion KRW, showing an increase in assets by 1.0365 trillion KRW and a decrease in liabilities by 65.3 billion KRW compared to the end of last year, thereby enhancing financial soundness.
SK Square itself continued debt-free management and secured approximately 1.1 trillion KRW in cash inflows. This provides the financial capacity to immediately execute trillion-KRW level investments if opportunities arise in the semiconductor sector.
The performance of portfolio companies such as T map Mobility, 11st, and SK Planet also improved partially.
T map expanded its highly profitable mobility data business, achieving sales of 160.3 billion KRW and a net loss of 37.2 billion KRW in the first half of this year, with sales increasing by 30.8 billion KRW and net profit improving by 800 million KRW compared to the previous year.
11st recorded sales of 305.9 billion KRW and a net loss of 39.1 billion KRW in the first half of this year. Although sales decreased by 107.4 billion KRW year-on-year, net profit increased by 11.8 billion KRW.
SK Planet improved profitability through expanding advertising sales using its own solutions and reducing outsourcing costs. In the first half of 2024, sales were 132.4 billion KRW with a net loss of 700 million KRW, representing a sales increase of 4.1 billion KRW and a net profit improvement of 23.7 billion KRW compared to the same period last year.
SK Square itself also successfully sold all shares of its non-core asset Krafton in the second quarter, generating cash inflows of 262.5 billion KRW.
Han Myung-jin, President of SK Square, stated, "From the second half of this year, we plan to accelerate value-up and liquidity of the existing portfolio," adding, "We will accumulate all necessary resources to transition to a semiconductor-centered portfolio and focus on preparing for the future."
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