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SKT reports increased advertising costs as operating profits slips

28 Jul 2009

South Korea’s largest mobile operator by subscribers, SK Telecom (SKT), has released its financial results for the three months ended 30 June 2009, with operating profit slipping slightly compared to the previous quarter on the back of increased competition. SKT posted an operating income of KRW553.4 billion (USD445.4 million), down from KRW564 billion in the quarter ended 31 March 2009, while revenue increased 6.7% quarter-on-quarter to KRW3.07 trillion. Following the merger of fixed line operator KT Corp and its mobile arm KTF Corp intensive marketing rivalry has once again been sparked, with operators fighting to grab bundled service subscribers; the fresh competition increased SKT’s advertising costs from KRW44.1 billion in 1Q 2009 to KRW62.6 billion in 2Q 2009. Net profit for the three-month period fell slightly compared to 1Q, down 1.6% to KRW311.6 billion, although it was up 4.5% year-on-year.

South Korea, SK Telecom (SKT)

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