SK Networks headquarters in Jongno District, Seoul / Courtesy of SK Networks
By Lee Gyu-lee
SK Networks posted a sharp improvement in first-quarter earnings, driven by stronger performance across its core businesses and gains from artificial intelligence (AI)-related investments.
The company reported revenue of 1.74 trillion won ($1.17 billion) and operating profit of 33.4 billion won for the first quarter on Thursday. Revenue rose 6.5 percent year-over-year, while operating profit more than doubled, surging 102.4 percent.
The earnings growth was driven by stronger profitability in core units, including its subscription-based, AI-powered appliance platform SK Intelix, information and communications segment and Walkerhill Hotels & Resorts division.
SK Intelix gained on a rise in subscribers, while Walkerhill saw improved performance across rooms, food and beverage and off-property operations amid a recovery in domestic and international tourism demand.
Net profit also improved significantly from a year earlier, swinging to 42.7 billion won, supported by strategic investments in AI-related ventures.
"The first quarter saw notable improvements in our core businesses, while other operations facing headwinds from global economic uncertainty also made meaningful progress in strengthening their fundamental competitiveness through innovation,” the company’s official said.
“It's also encouraging that we realized valuation gains from AI-focused investments we made early on."
Following its strong performance, SK Networks said it plans to further integrate AI technologies across its business portfolio and develop new business models. It is also focused on strengthening its position as an AI-centered holding company.
Starting in the second quarter, SK Intellix will launch a series of new water purifier products to expand its customer base, while strengthening customer-focused service and marketing for its wellness robotics brand NamuhX, positioning it as an agentic AI platform capable of automation and voice control technology.
Walkerhill also plans to further upgrade AI systems related to customer service and operations, while strengthening its platform hotel model through data-driven hyper-personalized services.
SK Networks is also deepening its partnership with AI startup Upstage, in which it has made multiple investments since 2024, by developing collaboration models across its subsidiaries and exploring additional synergies to expand its AI ecosystem.
The company will also pursue asset optimization efforts, including completing the planned sale of its stake in AI-powered buyback service Mintit on schedule.
Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.