SK Networks Reports Q1 Operating Profit of 41.2 Billion KRW, Up 18.1% YoY

"Rental Car, SK Magic, and Other Rental-Centered Growth Businesses Achieve Steady Profits"

[Asia Economy Reporter Kim Ji-hee] SK Networks announced on the 28th through a preliminary earnings disclosure that it recorded consolidated sales of 2.8746 trillion KRW and operating profit of 41.2 billion KRW in the first quarter of this year. Compared to the same period last year, sales decreased by 4.9%, while operating profit increased by 18.1%.

SK Networks explained that despite the global economic downturn and worsening business environment, rental-centered growth businesses such as car rentals and home care (SK Magic) achieved solid profits.

An SK Networks official stated, "The hotel business, which was inevitably affected by the novel coronavirus infection (COVID-19), focused more on customer safety and cost efficiency," adding, "We were able to improve profitability by generating stable results exceeding last year's performance in the car rental and home care business sectors, which are being nurtured as future growth businesses."

In the car rental business, after integrating AJ Rent-a-Car this year and launching 'SK Rent-a-Car,' the number of vehicles in operation surpassed 200,000. The effects of cost reduction due to expanded vehicle transaction volume and improved operational efficiency in maintenance and insurance became visible. In the case of SK Magic, lifestyle environment products such as direct water purifiers and dishwashers gained popularity. In particular, the 'Triple Care Dishwasher' launched in January surpassed 10,000 units sold within two months of release.

Despite losses incurred, such as temporarily closing one of the three hotels operated by Walkerhill and implementing paid leave for hotel staff, the company as a whole generated profits exceeding market expectations.

SK Networks plans to complete the transfer of its gas station retail sales business by June 1 and continue investing in future growth businesses while enhancing financial soundness and seeking additional growth opportunities.

This content was produced with the assistance of AI translation services.