SK Networks Q3 Operating Profit 40.3 Billion KRW... "Efforts to Secure New Growth Engines"

[Asia Economy Reporter Hyunseok Yoo] SK Networks announced on the 8th that it recorded consolidated sales of 2.4765 trillion KRW and operating profit of 40.3 billion KRW for the third quarter. Sales and operating profit decreased by 12.1% and 14.6%, respectively, compared to the same period last year.

An SK Networks official said, “We continued steady performance in the mobility sector centered on SK Rent-a-Car, and the hotel business also accelerated normalization due to demand recovery following the easing of COVID-19 impacts.”

SK Rent-a-Car solidified its role as a growth pillar by maintaining balanced performance through a booming rental business operating the largest short-term rental branch in Jeju and increased profits from used car sales. The hotel business improved its performance and turned profitable with recovery in room and food & beverage operations, as well as expansion of hotel users through MICE events and weddings. Although sales decreased in the global business due to the termination of the steel business, operating profit increased year-on-year due to rising oil prices and increased demand for chemical products.

The information and communication business saw declines in sales and operating profit compared to the previous year, following a domestic trend of decreased new mobile phone sales. SK Magic steadily increased rental accounts, but intensified competition in the home appliance market and costs incurred from IT system development affected its performance.

During the third quarter, SK Networks supported the growth of its subsidiaries and held businesses while continuing efforts to discover future growth engines. In July, it invested 4 million USD in the U.S. tractor unmanned automation solution company ‘Savant.’ In August, the board of directors resolved to acquire the country’s No. 1 private electric vehicle fast charging business. Accordingly, SK Networks plans to invest a total of 72.8 billion KRW to acquire a 50.1% stake by participating in the acquisition of existing shares and a paid-in capital increase of a new corporation to be established by Estraffic through a spin-off of its electric vehicle charging business division.

The electric vehicle charging business brand SS Charger recently secured its position in the domestic EV charging market and demonstrated objective business competitiveness by being selected as the preferred negotiator in the private bid for ‘Highway Rest Area EV Charger Installation’ conducted by the Korea Expressway Corporation. SS Charger plans to provide services at 59 highway rest areas over the next 10 years.

Additionally, to cooperate on the metaverse business, regarded as the next-generation communication channel and a new economic paradigm, SK Networks signed a memorandum of understanding in August with metaverse specialist company ‘Com2Verse’ for ‘Strategic Business Cooperation and Investment to Build a Metaverse Ecosystem.’ Going forward, SK Networks plans to establish business zones for its headquarters and subsidiaries within the all-in-one metaverse space being developed by Com2Verse, conducting various business operations and customer services.

An SK Networks official stated, “In a management environment where uncertainty is intensifying, we will strive to secure competitiveness in our existing businesses while investing in and acquiring capabilities for future growth. We will accelerate evolution into business models suitable for changing environments and continue efforts to innovate corporate value through internalizing ESG management.”

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