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SK Telecom records significant net profit increase in 3Q17

7 Nov 2017

South Korea’s SK Telecom (SKT) recorded a significant increase in net profit in the quarter ended 30 September 2017, with a 146% year-on-year boost attributed in the main to increased equity gains from chipmaker subsidiary SK Hynix. For the period under review SKT reported a consolidated turnover of KRW4.44 trillion (USD3.95 billion), with this representing annualised growth of 4.7%, with the company noting that not only had wireless service revenue increased, but that it had seen growth at major subsidiaries including SK Broadband and SK Planet. Total operating revenues on a non-consolidated basis stood at KRW3.16 trillion, up 1.8% y-o-y, with mobile service revenues accounting for the largest portion of that figure (KRW2.74 trillion), followed by interconnection revenues (KRW150 billion) and ‘other’ turnover, which included revenues from leased line, fixed line resale and other businesses, generating KRW265 billion. Meanwhile, SK Broadband generated turnover of KRW760 billion in 3Q17, up 1.2% against the KRW751 billion reported in the corresponding period of 2016. Operating income, however, was down, standing at KRW392 billion in 3Q17, compared to KRW424 billion a year earlier, with SKT saying that this was due to ‘higher marketing and depreciation expense at the parent level’. EBITDA meanwhile totalled KRW1.21 trillion, representing a 1.7% y-o-y increase.

In operational terms, at the end of September 2017 SKT had 30.16 million mobile subscribers on its books, up from 29.45 million a year earlier, with 4G subscribers continuing to count for an increasing proportion of that total. Indeed, at end-September 2017 SKT served 22.57 million LTE-based customers, representing 74.8% of its overall base, up from 20.55 million (69.8%) a year earlier. Fixed broadband accesses meanwhile numbered 5.40 million, up from 5.18 million at the end of 3Q16, with IPTV subscribers reaching 4.29 million, having increased 10.5% y-o-y.

South Korea, SK Broadband, SK Telecom (SKT)

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