SK Networks Reports Q2 Operating Profit of 24.8 Billion Won, Down 42.4% Year-on-Year

Reverse Base Effect from Information and Communication Marketing Expenses
Pre-tax Profit Reaches 37.1 Billion Won, Up 44.1% Year-on-Year

On August 14, SK Networks announced that on a consolidated basis, it recorded revenue of 1.4445 trillion won and operating profit of 24.8 billion won for the second quarter of 2026. Compared to the same period last year, revenue decreased by 4.7%, while operating profit dropped by 42.4%. The company explained that the strategic adjustment of information and communication marketing expenses, in anticipation of intensified market competition in the second half of last year following the abolition of the Distribution Structure Improvement Act for Mobile Communication Devices (commonly known as the “Handset Act”), caused a reverse base effect. In addition, advertising expenses for new products by SK Intelecs also had an impact.

Pre-tax profit reached 37.1 billion won, supported by increased valuation gains on investment securities in companies such as Upstage and Phoenix Lab. In the case of Upstage, SK Networks acted as the lead investor in the Series B round in early 2024, investing 25 billion won, followed by an additional investment of 47 billion won through a call option and 50 billion won for the Series C round earlier this year, resulting in an 11.7% ownership stake. In January 2026, Upstage was the only startup selected in the first evaluation round of the “Independent AI Foundation Model Project,” a national initiative to identify top-tier AI, earning recognition for its technological capabilities.

Walkerhill Hotel & Resort achieved robust food and beverage sales based on an occupancy rate exceeding 70%, with aggressive efforts to attract MICE events also contributing to higher operating profits. In the case of SK Speedmate, profitability remained solid due to an increase in maintenance service customers and the acquisition of new clients for emergency dispatch services.

Global trading subsidiary Glowide more than doubled its operating profit year-on-year by boosting inventory management efficiency despite geopolitical risks such as U.S. tariffs and the U.S.-Iran conflict. Incross, which joined SK Networks this year, achieved growth across all business domains, with its subsidiary MINDNOKE’s search advertising segment reaching record-high revenue alongside wider marketing agency operations. Data and AI specialist ENCOAR increased profits from consulting and solutions, fueled by securing large-scale projects.

SK Networks plans to maximize efficiency by applying AI throughout all work processes and strengthening competitiveness by business as it carefully monitors the unstable business environment at home and abroad. The company intends to refine its business models and continue generating results based on this AI-driven innovation, thereby paving the way for future growth.

A representative from SK Networks stated, “Despite expanding global geopolitical risks and uncertainty in financial markets, we have achieved a variety of results across our business and investment portfolios. Relying on a stable financial structure, we will secure fundamental competitiveness in our businesses, support company-wide and subsidiary-level AI transformation as an AI-centered business holding company, and accelerate toward a future of innovation with AI.”

This content was produced with the assistance of AI translation services.