SK square reports operating loss for fiscal year 2022

SK square‘s headquarters

SK square, an investment-focused company that was spun off from SK telecom in November 2021, announced a provisional consolidated operating loss of 2.34 trillion won ($1.76 billion) for the fiscal year 2022.

This financial downturn is due to the lackluster performances from portfolio companies, including SK hynix. Sales totaled 2.27 trillion won, with a net loss of 1.31 trillion won.

On a non-consolidated basis, SK square reported an operating profit of 94 billion won and a net loss of 314.1 billion won over sales of 177.6 billion won.

In its role as an investment company, SK square highlighted significant achievements in cash flow and stressed its importance for future growth. Despite the challenging financial results, the company underlined its commitment to shareholder returns, completing the retirement of 10 billion won worth of treasury shares in October 2023 and an additional 20 billion won worth of share buybacks.

SK square successfully divested its 28.82 percent stake in SK shieldus for about 860 billion won and its 28.35 percent stake in NanoEntek, a medical in-vitro diagnostic device manufacturer, for around 51.5 billion won in 2023. It also sold approximately 35 billion won worth of SK planet shares.

The financial report includes accounting gains such as 177.1 billion won in dividend income from SK hynix. SK square also mentioned successful efforts to enhance the value of portfolio companies, citing the achievements made via its ‘Value Up’ strategy.

Notable investments and collaborations within the portfolio companies include a $50 million investment collaboration by SK square subsidiary One Store with U.S. mobile platform company Digital Turbine. SK shieldus also secured an additional 200 billion won investment from EQT Partners, while TGC Square, SK square’s overseas semiconductor investment corporation, is preparing to announce individual investment outcomes centered in Japan and the United States.

SK square was optimistic about a turnaround in the current fiscal year, citing positive trends in SK hynix’s financial performance during the fourth quarter of the previous year.