SK Networks 3Q Operating Profit 28.6 Billion KRW... 75% Increase YoY

SK Magic and Walkerhill Drive Strong Performance Growth

In the third quarter of this year, SK Networks achieved significantly improved results compared to the previous year. The cost efficiency and performance growth of SK Magic and Walkerhill were credited for this success.

On the 13th, SK Networks announced preliminary consolidated results with sales of 2.0428 trillion KRW and an operating profit of 28.6 billion KRW. Compared to the same period last year, sales increased by 13.9% and operating profit rose by 74.9%.

In particular, SK Magic led the performance improvement based on new product launches and cost efficiency. It reported strong results from the ultra-compact direct water purifier released in the first half of this year and the 'Core 360 Air Purifier' introduced in the third quarter. Additionally, operational improvements were achieved through reductions in marketing expenses.

Walkerhill increased its room occupancy rate through seasonal services and accommodation packages such as 'Camknic@Forest Park,' 'Park Concert,' and 'Pizza Hill Autumn Festival.' Furthermore, sales of Walkerhill Store, which sells kimchi, ready meals, and living products online, also grew.

Net profit reached 65.8 billion KRW, a 390.8% increase compared to the same period last year. This is attributed to the expansion of cash assets following the completion of the SK Rent-a-Car stake transfer and repayment of borrowings. In fact, the debt ratio significantly improved from 323% at the end of last year to 174%.

SK Speedmate, which was spun off last September, has laid the foundation for business expansion by introducing data solutions such as the AI vehicle quotation program from the German automotive data company DAT. The trading division is scheduled to be spun off next month.

An SK Networks official said, "Based on a stable financial structure, we will enhance the completeness of our business holding company form that supports growth in cooperation with subsidiaries," adding, "We will build a solid corporate stature amid unstable economic conditions and promote AI-based business model innovation."