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- Solid performances in ‘Home Care’ and ‘Mobility’ businesses in the midst of the COVID-19 pandemic… strengthened marketing support for future growing businesses
- SK magic, increase in rental accounts and expansion in strategic partnership; and SK rent-a-car, leading the EV rental market
- “Bolstering the rental business to regain market confidence… and exploring additional opportunities for growing businesses.”

SK networks announced on May 4th, 2021 through a provisional performance disclosure that it achieved KRW 2.75 trillion in sales and KRW 26.4 billion in operating income (decreased by 4.2% and 35.4% respectively based on a year-on-year comparison) for 1Q 2021 based on consolidated financial statements. Its net income turned surplus with KRW 65.5 billion.

In this regard, an SK networks executive explained, “In the midst of the COVID-19 pandemic, steady profit has been made in growing businesses such as  Home Care(home appliance) and Mobility(vehicle) rental sectors, and we made various efforts in the first quarter for future growing businesses.” The executive added, “We were able to reinforce financial stability with money retrieved from selling a mining company in China and secure financial resources for further growth in businesses.”

SK magic released a series of products in Q1, including ‘All Clean Bubble Sterilization Bidet’ and ‘All Clean Air Purifier Virus Fit’ to improve its customer’s health and sanitation. Additionally, it expanded the channels to communicate with customers by organizing around 3,500 SK telecom stores nationwide for rental consultation and sub_ion services and opening a brand shop of new concept called ‘it’s magic’ in Gil-dong. This led to a continuation in the upward trend in sales with more than 2.05 million cumulative subscribers. Meanwhile, aggressive marketing activities were carried out in Malaysia as part of laying the basis for strengthening global competitiveness.

SK rent-a-car maintained its steady profit in the personal long-term rent-a-car service and short-term rent-a-car service mostly in Jejudo Island through strengthened customer relations. In addition, it took the lead in market under a rapidly-changing mobility environment with the developed EV rental model and proposed future strategies. In relation to this, green bonds were issued at the beginning of the year to present a blueprint for eco-friendly car expansion and ‘K-EV100 (Zero Emission Vehicles)’ was launched in March. Recently, it was unveiled that it is planning to build the nation’s largest EV complex in Jejudo Island by 2025 and launch EV rental packages with a charging service for corporate customers in cooperation with KEPCO.

In case of the ICT business, its sales and income increased based on a year-on-year comparison as new mobile phones had been released. ‘Mintit’, pursuing social value creation through distribution of used phones, continued to demonstrate stable growth by collecting 70,000 mobile phones per month from the used phone ATM; thus, attaining satisfactory results in terms of ESG. Global and hotel businesses focused on improving cost effectiveness and operational stability under uncertain conditions such as the COVID-19 pandemic.

SK networks established a strategy to enhance competitiveness based on reliable relations with stakeholders, including shareholders and customers by continuously expanding investment in the rental business, which is the key area for future growth and reinforcing ESG management across the board.

SK magic has come up with plans to offer services based on home appliance/rental product management capacity in partnership with manufacturers such as Samsung Electronics and SK rent-a-car to launch new products and services that will improve customer satisfaction making use of the company’s capabilities, digital technologies, etc. Furthermore, social values will be achieved in a wide range of businesses from Walkerhill which recently declared a conversion into an eco-friendly hotel to SK networks-operated Mintit and SpeedMate. Along with the above, it will step up in securing new growth momentum with funds secured through efficient asset management.

An SK networks executive commented, “We will closely observe and respond to the effects of conditions such as the COVID-19 pandemic on our businesses and at the same time, create differentiated values with products and services which reflect customer service trends mainly on home care and mobility,” and emphasized “Taking a closer look at the industrial and market trends, we will encourage investment in businesses with future values and promote sustained growth based on market confidence.”