SK Networks Q1 Operating Profit 26.4 Billion KRW...35.4% Decrease YoY

[Asia Economy Reporter Ki-min Lee] SK Networks announced on the 4th that its consolidated sales for the first quarter of this year were approximately KRW 2.7538 trillion, with an operating profit of KRW 26.4 billion. This represents a 4.2% decrease in sales and a 35.4% decrease in operating profit compared to the same period last year. However, net profit turned positive, reaching KRW 65.5 billion.

SK Networks explained, "Despite the global impact of COVID-19, we showed solid performance in rental sectors such as home care (SK Magic) and mobility (SK Rent-a-Car), which are growth businesses."

They also added that the recovery of funds from the sale of a Chinese mining company strengthened financial stability and secured resources for further growth.

SK Magic continuously launched hygiene appliances such as the All Clean Bubble sterilizing bidet in the first quarter and increased sales by providing rental product consultation and subscription services at over 3,500 SK Telecom stores nationwide. Additionally, the cumulative number of rental customers surpassed 2.05 million.

In the case of SK Rent-a-Car, they maintained solid performance in personal long-term rentals and short-term rental services centered on Jeju through strengthened customer management. In particular, they developed rental models using electric vehicles and presented future strategies. Relatedly, they unveiled a blueprint for expanding eco-friendly vehicles through the issuance of green bonds earlier this year and launched the "Korean-style Zero Emission Vehicle Transition 100 (K-EV100)" initiative in March.

In the information and communication business, they benefited from the effect of new phone launches, and ‘Mintit,’ which pursues social value creation through ICT used device distribution, continued stable growth by collecting about 70,000 phones monthly through used phone ATMs, demonstrating achievements in ESG (Environmental, Social, and Governance) aspects.

SK Networks plans to continuously expand investments in the rental business, a core growth area, and strengthen ESG management across all its businesses to enhance competitiveness based on the trust of stakeholders such as shareholders and customers.

An SK Networks official emphasized, "We will closely monitor and respond to the impact of environments like COVID-19 on our business while creating differentiated value by introducing products and services reflecting customer trends centered on home care and mobility. We will actively invest in businesses with future value by observing industry and market changes and promote sustainable growth based on market trust."

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