SK Square (402340) Q1 2025 earnings summary

Executive summary

• Achieved record consolidated operating income of KRW 1.7tn, up KRW 1.3tn year-over-year, driven by improved SK hynix earnings and ICT portfolio performance.

• All-time high first quarter revenue and operating income at SK hynix, with strong AI memory demand and HBM4 development completed.

• Portfolio rebalancing included a share swap of a 58% stake in IDQ for shares in IONQ, aiming for technological and business synergies.

• Announced share buyback and completed cancellation of previously acquired shares to enhance shareholder returns.

Financial highlights

• Consolidated revenue reached KRW 402.8bn; net income was KRW 1,612.3bn for the quarter.

• Net asset value (NAV) increased by KRW 2.3tn year-over-year to KRW 33.5tn, mainly due to the higher value of the SK hynix stake.

• Net cash position stood at KRW 431.6bn, with no unconsolidated debt.

Outlook and guidance

• Expect continued growth in AI memory demand, targeting over 100% growth in 2025 HBM revenue.

• TMAP MOBILITY aims for a turnaround to positive EBITDA in 2025, leveraging growth in the mobility data business and AI integration.

• SK planet and OK Cashbag businesses are targeting EBITDA turnarounds in 2025 through profitability improvements and new service launches.

• SK shieldus anticipates ongoing revenue and profitability growth, driven by security technology advancements and digital transformation.