Internet users boost SK Telecom’s first quarter results

South Korea’s leading cellco, SK Telecom[17670.KS], has announced a profitable Q1 2003 with net income totalling KRW449 billion (USD372 million), a year-on-year increase of 1.1%. Sales rose by 16% to KRW2.2 trillion helping to boost operating profit by 13% to KRW751 billion, whilst recurring profit showed an increase of 2% at KRW650 billion. The company has attributed much of the success to strong subscriber growth and a surge in demand for mobile internet access. SK Telecom currently has 17.6 million customers, with a monthly ARPU of KRW42,895, translating to a 53.6% majority share of South Korea’s mobile market. The company says that almost a third of subscribers have colour display phones and are spending an average of KRW9,329 a month in accessing internet services. The results should allay concerns over SK Telecom’s Q4 2002 results which, in conjunction with accountancy scandal allegations, contributed to a share price fall of 22% over the first three months of this year; since the release of the Q1 2003 results shares have risen 5.4%.