SK Networks Q2 Operating Profit 30.3 Billion KRW... "Improved H2 Performance Through Future Business Investments"

[Asia Economy Reporter Kim Ji-hee] SK Networks announced on the 30th that its consolidated sales for the second quarter reached 2.4335 trillion KRW, with an operating profit of 30.3 billion KRW. These figures represent decreases of 20.9% and 34.1%, respectively, compared to the same period last year.

Although sales and operating profit were impacted by the global economic downturn and deteriorating business environment caused by the spread of the novel coronavirus disease (COVID-19), the rental-focused future business growth, such as home care (SK Magic), continued. An SK Networks official explained, “SK Magic achieved steady profits with lifestyle environment products that meet consumers’ hygiene preferences, and we made efforts to enhance business competitiveness through proactive responses to new consumption trends such as untact. Additionally, we strengthened our growth foundation by recording a net profit in the 100 billion KRW range through the sale of the gas station retail business.”

In the case of SK Magic, sales of the all-in-one direct water ice purifier increased by 250% compared to the same period last year. Sales of dishwashers, including the newly launched ‘Touch On Plus’ in June, also rose by 160%, and rental accounts surpassed 1.94 million. Furthermore, new sales channels were expanded by launching live commerce ‘Magic Live On.’

SK Rent-a-Car achieved operating profit at the same level as the previous year, supported by the continuous growth of personal long-term rentals and integrated synergies. It introduced new services such as launching Tesla electric vehicle rental products through a memorandum of understanding (MOU) with Korea Electric Power Corporation and KAIST.

The automobile management business also received positive responses by revitalizing the distribution business of imported car parts and launching services such as tire valet installation and battery lightning dispatch service.

SK Networks plans to improve performance from the third quarter onward by strengthening investments in future growth businesses while stabilizing other businesses. With SK Magic performing well, the rental car business entering its peak season, new phone releases in the second half of the year, and the expected reduction of COVID-19’s impact on the hotel business, it is anticipated that achieving market-expected performance levels will be possible.

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