SK networks 2Q 2020 records: KRW 2.43 trillion in sales and KRW 30.3 billion in operating income
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2020-07-30
- Even though 2Q sales and profits were largely affected by the COVID-19 pandemic,
Continued efforts were made to create customer through future growing businesses and resulted in SK magic’s steady profits
- Business conditions are favorable to the rental business and improved 3Q performance is forecasted through a stable ICT business
- “Will raise our corporate value with our business models that bring economic and social values together”
SK networks announced on July 30th, 2020 through its provisional performance disclosure that it achieved KRW 2.43 trillion in sales and KRW 30.3 billion in operating income for 2Q 2020 based on consolidated financial statements. Sales and operating income decreased by 20.9% and 34.1%, respectively, based on a year-on-year comparison.
While 2Q 2020 sales and profit in general were inevitably affected by the worldwide economic recession and adverse business conditions due to the COVID-19 pandemic, analytics shows that future growing businesses centered around home care rental services (SK magic) continued to mark a growing trend.
In this regard, an SK networks executive explained, “SK magic collected steady profits with green home appliances that meet the needs of consumers who are concerned about hygiene issues, and efforts were made to improve business competitiveness through active response to new consumer trends such as contactless buying,” and added, “The foundations for growth were laid in 2Q 2020 as it recorded a net profit of over KRW 100 billion from selling the petroleum retail business.”
In particular, some of SK magic’s records include: a 250% year-on-year increase for All-in-one Ice Water Purifier in sales volume; 160% sales increase for dishwashers including Touch-On Plus, newly released in June; and, achieving over 1.94 million rental accounts. In addition, the live commerce channel Magic Live On was launched to broaden the customer communication spectrum by expanding new sales channels.
In the meanwhile, SK rent-a-car achieved a profit similar to the previous year based on sustained growth and integrated synergy of the private long-term rent-a-car business amid the COVID-19 influences. It also responded proactively to market changes by signing an MOU with KEPCO and KAIST to launch new services such as a rental service for Tesla EVs merging technology with the latest trend.
The vehicle maintenance business was also well received by customers with newly launched services including active engagement in import car parts distribution, tire valet installation, quick call-out for battery support, etc.
SK networks established a strategy to improve post-3Q performance by reinforcing investments in future growing businesses, while at the same time making efforts to stabilize other business areas. As SK magic is sailing well, the rent-a-car business is approaching a peak season, new phones will be released in the second half-year and COVID-19 influence on the hospitality business is expected to decrease, it is forecasted that the company would achieve a performance level that meets market expectations.
In addition to the above, a new Mintit mini ATM will be released and more of installations will be found in SK Telecom stores and other locations that would contribute to create social value through used phone recycling.
An SK networks executive commented, “We will raise our corporate value with our busines models that bring economic and social values together. We will further evolve into a company which adds happiness to customers, investors, society and members within the company.”
