Author: Tronserve admin
Saturday 24th July 2021 10:01 PM
SKT Q1 Operating Profit Up 86% On Quarter on Accelerated 5G Migration
South Korea’s leading mobile carrier SK Telecom Co. posted an 86 percent on-quarter surge in operating profit in the first quarter thanks to the increased 5G network subscription.
SK Telecom disclosed Thursday that its consolidated operating profit for the January to March period totaled 302 billion won ($246.3 million), up 85.9 percent from the previous quarter but down 6.4 percent from a year ago. Revenue rose 0.9 percent on quarter and 2.7 percent on year to 4.45 trillion won.
Net profit came at 306.8 billion won, down 17.9 percent on equity losses from its holding in SK Hynix, its chip making affiliate.
On Thursday, shares of SK Telecom rose 0.24 percent to close at 207,000 won.
On a separated basis, SKT saw its sales increase 3.9 percent to 2.92 trillion won. The company attributed the gain to the rise in the number of its 5G service subscribers to 2.65 million as of the end of March, despite slowdown in roaming and wireless business due to the impact of coronavirus.
Its internet service unit SK Broadband raked in 823.5 billion won in revenue, up 8.2 percent from a year earlier on the back of brisk IPTV business. SK Broadband completed merger with local cable TV operator T-broad on April 30, securing 8.21 million paid subscribers and 6.48 million internet service subscribers. It aims to achieve more than 4 trillion won in sales this year.
The company’s security business including ADT Caps and SK Infosec delivered 291.4 billion won in revenue, up 5.4 percent against a year ago.
Sales of the commerce business declined 4.5 percent on year due to the changes in accounting rule. The figure grew 3 percent excluding the effect from the accounting rule changes. E-commerce platform 11st Street saw its payment volume rise 9 percent and SK Stoa’s revenue jumped more than 44 percent thanks to the expanded online and mobile channels.