SK Networks posts stable Q1 earnings growth on recovery in hotel business

SK Networks has reported earnings growth in the first quarter due to the recovery of its hotel business and overall revenue expansion with its diverse business portfolio, the company said Monday.

According to the company's regulatory filing, it generated an operating profit of 62.4 billion won ($45.58 million) between January and March, up 1.5 percent from a year earlier, after its hotel business helped offset dips in revenue caused by its car rental unit. The firm's sales also came in at 2.47 trillion won, up 3.6 percent, during the same period.

Walkerhill Hotels & Resorts stood at the center of its earnings growth, as more tourists visited the hotel after it carried out renovation work as well as updating its buffet offerings and held diverse promotional campaigns to attract more customers, the company said.

SK Networks also reiterated its strong willingness to transform into an artificial intelligence (AI)-driven company by introducing diverse AI solutions for multiple areas of its business.

Under this drive, Walkerhill aims to rebuild its brand identity as an AI-powered hotel.

Last year, the hotel unveiled its first-ever non-fungible token-based membership service, offering customized services for its members.

SK Networks shared its grand vision of achieving an annual operating profit of 700 billion won in less than three years, powered by an AI-driven growth strategy.

For instance, SK magic, the home appliance arm of SK Networks, is on track to diversify its revenue streams with a plan to launch more AI-converged IT devices in promising areas, such as pets and health care.

The company is also increasing investments in promising AI startups.

The company invested in Upstage, an AI company that specializes in generative AI so that the SK affiliate can generate more AI synergy in its future business areas.

"We will keep accelerating our ongoing AI drive by establishing more AI-centric business models," an official from SK Networks said. "SK Networks will also strengthen its financial stability, and keep enhancing values from interested parties, so it can continue developing into a sustainable firm."