SK Networks Posts KRW 33.4 Billion Operating Profit in Q1, Up 102.4% Year-on-Year

Improved Performance Driven by Strengthened Competitiveness in Core Businesses

SK Networks has achieved improved first-quarter results, driven by strengthened competitiveness in its core business areas and investment gains in the AI sector.

On May 14, SK Networks announced that its consolidated sales for the first quarter reached KRW 1.7434 trillion, with an operating profit of KRW 33.4 billion. Compared to the same period last year, sales increased by 6.5%, while operating profit grew by 102.4%.

The increase in the number of new subscription accounts for SK Intelecs boosted profitability, and Walkerhill performed strongly across all divisions—including rooms, food and beverage, and external businesses—due to increased facility usage by both domestic and international tourists. Additionally, strategically adjusting the timing of marketing expenses in the ICT business unit, in line with new mobile device launches, positively impacted operating profit.

Furthermore, net profit saw a significant improvement year-on-year, thanks to strategic investments based on the HiCo system and successful asset optimization. The company swung to a profit, posting a net income of KRW 42.7 billion. This reflects, among other factors, valuation gains from funds that were proactively invested to revitalize the AI ecosystem.

A representative from SK Networks commented, “Our core businesses—SK Intelecs, ICT, and Walkerhill—delivered outstanding results, and even amid uncertainties in the global economy and market conditions, we made innovative efforts to enhance essential competitiveness in several areas. It is also encouraging that we achieved investment asset valuation gains in the AI sector, which we had focused on early.”

SK Networks plans to continue strengthening its differentiated competitiveness by integrating AI technology and innovating new business models, based on the stable performance of its current businesses. The company is also committed to building a business portfolio optimized for future growth, and will further promote the creation of an open AI ecosystem and the enhancement of national industrial competitiveness.

In this context, the ICT business unit will closely monitor trends in the mobile device market while executing its marketing strategies, and will work to improve profitability by strengthening logistics capabilities and supporting new business initiatives through its subsidiary, SK Networks Service.

Since its initial investment in early 2024, SK Networks has been reinforcing its partnership with the AI company Upstage through additional investments, and plans to develop collaborative models spanning both its main company and subsidiaries. The company will also actively work to enhance operational efficiency of its business portfolio and assets, including completing the scheduled sale of its stake in Mintit.

An SK Networks representative stated, “By strengthening competitiveness and improving operational performance across all business areas, we will further enhance profitability and financial soundness. Based on this, we will pursue an AI transformation strategy aligned with our future evolution, and elevate our value as an AI-centric business holding company.”

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