SK Networks has accelerated its transition to an artificial intelligence (AI)-focused business model, reporting declines in both revenue and operating profit for the third quarter of this year. While the telecommunications and hotel sectors showed strong performance, costs related to organizational restructuring weighed on the overall results.
On November 6, SK Networks announced that its consolidated revenue for the third quarter reached 1.9357 trillion won, with an operating profit of 20.1 billion won. This represents a decrease of 1.9% and 9.9%, respectively, compared to the same period last year. Pre-tax profit was recorded at 18.9 billion won.
In terms of business segments, the telecommunications division benefited from adjustments in device marketing expenses and increased sales of AI and data-related products, including servers and storage. Walkerhill reported a 57% increase in operating profit to 9.1 billion won, driven by strong performance in its lodging and food services. The advertising subsidiary, InCross, also saw its operating profit rise by nearly 50% due to expanded game advertising.
SK Magic is enhancing its rental business competitiveness through increased sales of ice water purifiers. SK Intellix has also ventured into international markets by introducing its wellness robot, Namux, in Malaysia.
Despite the expansion of new AI-related businesses, the improvement in this quarter's results was primarily supported by existing sectors such as telecommunications and hotels. The key variable for future performance will be whether the investments in AI yield actual profits.
SK Networks continues to invest in AI technology companies. Last month, it decided to acquire an additional stake in Upstage worth approximately 20 billion won, bringing its total investment to 142 billion won. AI drug development firm Phoenix Lab successfully secured its first external investment of $8 million.
Additionally, the company is promoting AI utilization training for all employees and developing personalized AI agents while expanding AI applications across various business sectors through organizational restructuring.
An SK Networks representative stated, "We will build the capabilities and operational systems necessary for AI transformation and create tangible results through collaboration between our investment companies and existing businesses."
* This article has been translated by AI.
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