SK Square (402340) Q2 2025 earnings summary

Executive summary

• Consolidated operating income rose to KRW 3,053.4bn, driven by SK hynix earnings and operational improvements in ICT portfolio companies.

• Net income reached KRW 3,056.2bn, with consolidated revenue at KRW 809.4bn for H1 2025.

• NAV increased by KRW 15.1tn quarter-over-quarter to KRW 48.6tn, mainly due to the higher value of the SK hynix stake.

• The group includes 20 consolidated subsidiaries after several divestitures and restructuring activities.

• The company is a KOSPI-listed entity, majority-owned by SK Inc., with a 32.05% stake as of June 2025.

Financial highlights

• Total assets stood at KRW 24.5tn, with liabilities at KRW 2,198.3bn and shareholders' equity at KRW 22.3tn as of June 2025.

• Net cash position was KRW 1,175.3bn, with no unconsolidated debt.

• Dividend income totaled KRW 54.8bn.

• Basic EPS for H1 2025 was KRW 23,068, compared to KRW 8,091 in H1 2024.

• Debt ratio was 9.8%, down from 11.9% at end-2024.

Outlook and guidance

• The group aims to strengthen its investment portfolio, focus on semiconductor and ICT sectors, and enhance shareholder value through active capital management and business restructuring.

• SK hynix expects continued demand growth for AI memory, with 2025 HBM revenue projected to more than double year-over-year.

• TMAP MOBILITY anticipates a full-year EBITDA turnaround in 2025, driven by mobility data business growth and AI integration.

• Ongoing cost optimization and digital transformation initiatives are expected to support sustainable growth.

• SK shieldus expects ongoing revenue and profitability improvements through digital transformation and expanded security solutions.