SK Square reports 58% drop in net profit in Q3 from previous quarter

The figure missed the market consensus of 424.5 billion won compiled by FnGuide.

SK Square, an investment-focused SK Telecom spin-off, reported a net profit of 207.9 billion won ($157.1 million) for the July-September period, a 58-percent decline from the previous quarter.

The figure missed the market consensus of 424.5 billion won compiled by FnGuide.

As SK Square was spun off from SK Telecom last November, corresponding figures from the previous year were provided.

Sales came in at 1.24 trillion won, down 19 percent on quarter, below the analyst expectation of 1.42 trillion won. Operating profit was 169.4 billion, down 68 percent compared to the previous quarter and also fell short of analyst forecast of 399.7 billion won.

SK Square is 30.01 percent owned by SK Inc., its largest shareholder, and focuses on investments in semiconductors, media and related businesses.

As an investment company, its net reflects equity method profit or loss from associate companies. SK Square's investment portfolio involved 19 companies as of the end of September, including SK hynix, SK Shieldus, One store app market, TMAP Mobility navigation service and 11st e-commerce service.

The company owns 20 percent of SK hynix and is the largest shareholder. The 43.8-billion-won dividend yield from SK hynix was included in the earnings, as in the case of the previous quarter.

“Despite unfavorable internal and external situations, we are preparing for future investments according to plans based on a stable cash flow,” said Jeong Jae-heon, head of SK Square’s investment support center.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]