SK Networks Reports Q1 Operating Profit of 43.3 Billion KRW... "Strong Performance of Rental Subsidiary Business"

[Asia Economy Reporter Yoo Hyun-seok] SK Networks received a first-quarter report card showing significantly improved earnings compared to the same period last year, driven by steady performance from its rental subsidiaries and reduced hotel losses following the easing of COVID-19 social distancing measures.

On the 9th, SK Networks announced its preliminary earnings, reporting consolidated sales of 2.5007 trillion KRW and operating profit of 43.3 billion KRW for the first quarter of this year. Sales decreased by 9.2% year-on-year due to the impact on information and communication device sales caused by the global semiconductor supply shortage. Operating profit, however, increased by 63.9%. Net profit for the period fell by 55.0%, reflecting the recovery of funds from the sale of a Chinese mining company recorded in the first quarter of last year.

Specifically, core subsidiaries engaged in the rental business, SK Rent-a-Car and SK Magic, led the industry with new product launches tailored to customer needs and ESG management, showing continuous growth.

SK Rent-a-Car benefited from increased profits from used car sales and rising domestic travel demand centered on Jeju Island. It enhanced customer value by consecutively launching new products such as ‘SK Rent-a-Car TagoPay’ and the online-exclusive ‘Used Car Long-term Rental.’ Additionally, in collaboration with SK Telecom, it received approval from the Ministry of Land, Infrastructure and Transport for its greenhouse gas emission reduction project and strengthened its position as an eco-friendly mobility rental provider by launching the industry’s first Polestar 2 long-term rental product.

SK Magic saw continued customer enthusiasm for popular products like the ‘All Clean Air Purifier’ and ‘Triple Care Dishwasher,’ increasing cumulative rental accounts to 2.24 million. It is also expanding its eco-friendly appliance lineup, the ‘Green Collection,’ with the release of the ‘Eco Mini Water Purifier Green41’ in January this year. Furthermore, the ‘Special Rental Service’ launched last year in partnership with Samsung Electronics has expanded to six premium product categories, including premium vacuum cleaners. In March, SK Magic broadened its business scope by launching the ‘Lattego’ coffee machine rental service in partnership with Philips Home Appliances Korea.

Walkerhill significantly reduced losses as room and food and beverage businesses revived following the easing of COVID-19 social distancing, and it is focusing on attracting weddings and seminars in line with customers’ return to daily life. ICT recycling subsidiary Mintit promoted the culture of used phone distribution through its customer compensation program in the first quarter and has been planning various customer engagement activities, including releasing a new campaign video emphasizing personal data deletion technology and opening a pop-up store.

Alongside this, SK Networks has strengthened investments and business collaborations in promising future areas such as artificial intelligence, digital technology, ESG, and blockchain to enhance corporate value. Investments have been made in electric vehicle slow charging company Everon, eco-friendly alternative leather company MycoWorks, as well as blockchain-related ventures like Hashed Ventures and Block Odyssey. Through these efforts, SK Networks is diversifying its investment portfolio and accelerating the search for new growth engines.

SK Networks plans to continue enhancing its value as a business investment company from the second quarter onward, while strengthening the competitiveness of its existing businesses to boost stakeholder trust. A SK Networks official stated, “We will generate results that meet market expectations by not only sustaining growth in businesses that performed well in the first quarter but also expanding the businesses of new subsidiaries such as imported car parts and Mintit and Cartini. We will also advance existing business models linked to new investments and pursue new growth engines.”

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