SK Square, Turns to Loss in 1Q... Operating Loss of 639 Billion KRW

SK Square announced on the 15th that it recorded sales of 11.2 billion KRW, an operating loss of 639 billion KRW, and a net loss of 523.7 billion KRW based on consolidated financial statements for the first quarter. Compared to the same period last year, sales decreased by 98.8%, and operating profit turned to a loss.

SK Square's consolidated results reflect equity method gains and losses from portfolio companies. In the first quarter, approximately 1 trillion KRW of consolidated sales and others decreased due to equity method losses from SK Hynix and the sale of SK Shieldus shares. Although the SK Shieldus deal has not yet been completed, its consolidated results have been reflected only as discontinued operations from the first quarter of this year in accordance with accounting standards.

The company stated that excluding portfolio companies, SK Square itself has secured a healthy cash flow and is fully prepared for new investments. As of the first quarter, it holds cash and cash equivalents of 358.4 billion KRW that can be liquidated, and with zero borrowings, it has secured high leverage investment capacity.

Additionally, as of May, dividend income of 89.4 billion KRW has been received in cash inflow from SK Hynix and others. Upon completion of the SK Shieldus deal this year, an additional total of 864.6 billion KRW is expected to be inflowed, including 414.6 billion KRW from the share sale proceeds and 450 billion KRW of remaining payments within two years after deal completion.

As of the 12th, SK Square has completed about 57% of its planned share repurchase amounting to 110 billion KRW, steadily executing shareholder returns promised at this year’s general meeting of shareholders. SK Square announced plans to repurchase treasury shares worth 110 billion KRW, which is more than 30% of regular dividend income, from March 31 to September 29 this year and then cancel all shares at once. Additionally, it will actively consider executing shareholder returns worth approximately 200 billion KRW through share repurchases and cancellations upon completion of the SK Shieldus deal.

SK Square plans to disclose results related to global semiconductor and ICT investments and value-up of portfolio companies as soon as collaboration with partners is finalized.

Jung Jae-heon, Head of SK Square Investment Support Center, said, “Although consolidated results are affected by the global semiconductor downturn, we are strengthening SK Square’s investment competitiveness based on healthy cash flow,” and added, “We will faithfully fulfill the shareholder returns promised to shareholders and demonstrate new investment achievements.”

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