Sales fall 1.9% to 1.94 trillion won

Career transition program costs weigh on results

Company deepens AI capabilities, adds to Upstage stake

The SK Networks headquarters building. [SK Networks]
The SK Networks headquarters building. [SK Networks]

SK Networks reported consolidated sales of 1.94 trillion won ($1.44 billion) and operating profit of 20.1 billion won for the third quarter, the company disclosed Friday. Sales fell 1.9 percent from a year earlier, while operating profit dropped 9.9 percent. Pre-tax profit came in at 18.9 billion won, down 22.8 percent.

The company said the quarterly results reflected costs tied to a career transition program carried out as part of an organizational restructuring. The restructuring was designed to improve the organization's responsiveness and operational efficiency in line with its medium- to long-term business direction, and to support AI adoption across business units and the pursuit of new business opportunities.

Since early this year, SK Networks has worked with external specialists to embed AI transformation capabilities across its entire workforce, running a parallel effort to develop personalized AI agents. "Proactively building the workforce capabilities, work processes and operating systems needed for AI transformation is an essential step toward the company's long-term sustainability," a company official said. "We will sharpen the execution of the AI transformation effort we have sustained since the start of the year, and generate tangible results through collaboration between our portfolio companies and existing businesses."

At the business unit level, the information and communications division helped lift results by strategically managing device sales and marketing costs, while SK Networks Service posted strong sales of AI- and data-related products such as servers and storage. SK Networks Service plans to strengthen timely product supply and technical support to meet corporate customers' growing demand for AI adoption, and to expand its B2B infrastructure maintenance and management business.

Walkerhill saw operating profit rise 57 percent year-on-year to 9.1 billion won, driven by strong performance in accommodation and food and beverage. Following Walkerhill Hotel Kimchi, the premium kimchi brand Supex Kimchi made its first export shipment to the United States.

Namux, the wellness robot brand of SK Intellix, held a brand launch event in Malaysia and plans to enter additional markets, including the United States. Namux robots autonomously detect indoor air pollution and purify the air while navigating on their own, and also offer remote monitoring and contactless health-check functions. Sales of SK Magic's ice water purifier line rose from a year earlier, buoyed by the spread of home-cafe and home-drinking culture.

Incross saw operating profit rise about 50 percent year-on-year as advertising spending increased with the launch of new titles by game companies. The company also introduced a paid subscription plan, "Stellarize With," for its AI-based content marketing platform Stellarize, which includes a feature that suggests content scenarios tailored to each creator's characteristics and strengths.

SK Networks has continued to invest in AI technology companies. On Oct. 13, it decided to acquire an additional stake in Upstage worth around 20 billion won to strengthen its AI business competitiveness and generate synergies. The company had previously led Upstage's Series B round in 2024 with an investment of 25 billion won, and followed up with investments of 27 billion won and 50 billion won in February and March of this year, respectively.

Phoenix Lab, established through SK Networks' early-stage company incubation program, successfully closed an $8 million investment round, marking its first external funding. Phoenix Lab developed Kairon, an AI-powered drug development solution.

Encoa, an AI and data company, is pursuing an "AI Ready Data Platform" strategy using ontologies to help AI accurately understand and use corporate data. Encoa recently signed an MOU with Hanwha Systems to jointly develop industry-specific AI services, and was named an OpenAI Select Partner in September.


eyre@heraldcorp.com