- Steady profit collection from future growing businesses amid deteriorating global business conditions
- Continuous efforts to be made to minimize COVID-19 influence on ICT, hospitality, etc.
- “Growing businesses will be under continued investment and corporate value will be raised through reinforced financial stability.”

SK networks released its 1Q performance with results beyond market expectation.

SK networks announced on April 28th, 2020 through its provisional performance disclosure that it achieved KRW 2.87 trillion in sales and KRW 41.2 billion in operating income for the 1Q 2020 based on consolidated financial statements. Sales decreased by 4.9% while operating income increased by 18.1% based on a year-on-year comparison.

This achievement is considered to be attributed to steady profit collection from growing businesses including rent-a-car, home care (SK magic), etc. centered around rental services amid the worldwide economic recession and adverse business conditions.

An SK networks executive explained, “The hospitality business, which was inevitably affected by the COVID-19 pandemic, focused more on customer safety and cost efficiency,” and added, “Profit increase was realized because a stable performance was created, more than last year, from rent-a-car and home care sectors that are under intensive nurturing as future growing business areas.”

The rent-a-car business, in this relation, started as SK rent-a-car this year after integrating AJ rent-a-car, and the number of operating vehicles exceeded 200,000. Cost reduction followed by vehicle transaction volume expansion and increased operational efficiency in maintenance/insurance services became visible.

In case of SK magic, green home appliances such as water purifier and dishwasher were popular as more and more consumers became concerned about hygiene issues. In particular, an outstanding performance was achieved by Triple Care Dishwasher which was released last January and sold more than 10,000 units in only two months.

This was why the company was able to generate a profit beyond market forecast even though losses were incurred as one of three hotels operated by Walkerhill was temporarily closed and paid vacations were given to hotel workers.

When the petroleum retail business transfer is finalized on June 1st, SK networks plans to increase its financial stability and seek additional opportunities for growth while keeping continued investments in future growing businesses at the same time. The strategy is to raise corporate value through this and further evolve into a company which adds happiness to customers, investors, society and members within the company.