SK Networks Reports 46% Decrease in 3Q Operating Profit Due to "Impact of COVID-19 Resurgence"

[Asia Economy Reporter Suyeon Woo] SK Networks' operating profit for the third quarter of this year was 43.5 billion KRW, a 46% decrease compared to the same period last year. The overall profit decline was inevitable due to the closure of the buffet operations at Walkerhill Hotel amid the COVID-19 pandemic.

On the 28th, SK Networks announced that its sales for the third quarter of this year reached 2.5599 trillion KRW, and operating profit was 43.5 billion KRW. These figures represent decreases of 28.6% and 45.9%, respectively, compared to the previous year. An SK Networks official explained, "Due to the resurgence of COVID-19 in the third quarter, it was inevitable that sales and profits were generally affected, including the closure of the buffet operations at Walkerhill Hotel."

However, SK Magic’s home care business and SK Rent-a-Car’s mobility business actively expanded their activities, laying the foundation for new growth engines. In the third quarter, SK Magic consecutively launched new home appliances such as the self-cleaning water purifier and the Double Flex induction range, with three products winning the IDEA Design Award. Through this, they are on the verge of surpassing 2 million rental accounts.

In the case of SK Rent-a-Car, they targeted customers renting cars in Jeju Island during the summer season by diversifying vehicle models and strengthening contactless services, and also introduced short-term Tesla electric car rental products in the metropolitan area. Recently, they launched the 'EV All-in-One' service, which offers unlimited charging, aiming to strengthen electric vehicle rental services.

SK Networks plans to pursue continuous growth in future new businesses while aiming for a performance rebound in the fourth quarter through revitalizing distribution following new smartphone launches and efforts to normalize Walkerhill Hotel operations. An SK Networks official said, "Despite the difficult environment, the rental business continues to perform well, which gives us positive hope," adding, "We will secure business stability amid COVID-19, execute strategic investments to enhance corporate value, and improve customer service satisfaction."

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