- Sales and profits were largely affected by COVID-19... but performance flow improved compared to the previous quarter
- Future growing businesses including SK magic and SK rent-a-car extend efforts for aggressive marketing and new product releases
- “Increased 4Q performance is anticipated from continued rental business growth and new phone releases”

SK networks announced on October 26th, 2020 through a provisional performance disclosure that it achieved KRW 2.56 trillion in sales and KRW 43.5 billion in operating income for 3Q 2020 based on consolidated financial statements. The sales and operating income decreased by 28.6% and 45.9%, respectively, based on a year-on-year comparison.

3Q 2020, immensely affected by COVID-19, the company sales and profits in general were inevitably damaged as some business operations such as hotel buffet restaurants were closed. However, the strategy to reinforce stability by business unit resulted in improved performance compared to 2Q. In particular, analytics shows that future growing businesses including home care (SK magic) and mobility (SK rent-a-car) were engaged with various activities to enhance customer value.

SK magic released a series of home appliances in 3Q including Water Purifier for Self-Maintenance, and Double-Flex Induction Cooker. Three of these products including Triple Care Dishwasher won awards from IDEA, one of the world’s most prestigious awards. Through this series, functional convenience and emotional satisfaction for customers were branded and turned into a continuous growing trend to the extent that the number of rental accounts is about to exceed 2 million. Given that the accounting standard for losses from rental asset disposal was modified and extensive marketing costs was executed in 3Q, SK magic is considered to have created steady profit even in the mist of the COVID-19 pandemic.

SK rent-a-car catered for the convenience of summer customers in Jejudo Island by offering various vehicle types and stronger non-contact services. It also released a short-term rental service for Tesla EVs in Seoul/Gyeonggi areas. Recently, it launched a service called EV All-in-One to provide unlimited charging services and set the trend in the EV rental market. Favorable conditions continue for the business as it operates an extended number of vehicles through new services based on technology innovation.

SpeedMate also raised its earning capacity by expanding car parts distribution for imported cars while TIREPICK presented a battery replacement service and successfully enhanced the online mobility shopping culture.

In addition, SK networks developed the Mintit mini ATM model that has been installed in SK telecom stores since July and SK rent-a-car started the third mobility bank project. These efforts are aimed at social value creation using current businesses operations.

SK networks planned a 4Q strategy to add to 3Q’s growing performance trend by seeking sustained expansion of future growing businesses while at the same time putting efforts to link new smartphone releases with revitalized distribution and wait for the return to normal business conditions of the hospitality business.

An SK networks executive commented, “Our future prospects are positive because 3Q performance has been improved over 2Q and business conditions are maintained for the rental business, despite challenging environments,” and emphasized, “While we will have the lingering COVID-19 pandemic under careful observation and seek to ensure business stability, we will also execute strategic investments to improve corporate value, identify business models that create customer accordingly and gradually increase service satisfaction.”