content area
Press Release
Revenue of KRW 2.7125 trillion, operating income KRW 758.1 billion, net income KRW 456.8 billion, quarter-to-quarter growth of 2.8%, 22.4%, 22.4% respectively.
Ongoing efforts for market stabilization. Efficient marketing expenditure leading to a quarter-to-quarter drop of 14.5% in marketing expenses.
Rise in revenue from increased subscribers and readjustment of connection fees, leading to annual business target of KRW 10.5 trillion.
SK Telecom released its earnings for the third quarter, with revenue of KRW 2.7125 trillion, operating income of 758.1 billion, and net income of KRW 456.8 billion, quarter-to-quarter growth being 2.8%, 22.4%, and 22.4% respectively. Net income fell 22.3% year-on-year, while revenue and operating income grew 4.5% and 13.0% respectively.
Having reached the target of 20 million subscribers, consistent increase in subscribers have led to a rise in voice revenue, and readjustment of connection fees announced in September have led to a quarter-to-quarter revenue growth of 2.8%, and a year-on-year increase of 4.5% to record KRW 2.7125 trillion.
With a drop in marketing costs, operating income was KRW 758.1 billion, a 22.4% growth from the prior quarter, and a 13.0% year-on-year rise due to an increase in revenue and readjustment of connection fees. Net income recorded KRW 456.8 billion, growing 22.4% from the prior quarter, but dropping 22.3% from the same period of last year when non-operating income was reflected due to the sale of SK Teletech.
Marketing expenses grew 13.2% year-on-year to KRW 512.7 billion, but was a drop of 14.5% from the prior quarter, taking up 18.9% of revenue. This was the result of efficient marketing expenditure with the maintenance of market leadership despite the impact from implementation of handset subsidies early this year and ongoing efforts for market stabilization.
ARPU was KRW 45,236, a 2.0% and 0.7% quarter-to-quarter and year-on-year increase.
SK Telecom’s CFO Hah Sung-Min remarked "Based on the cumulative performance up until the third quarter, we will be able to achieve the revenue guidelines presented earlier this year of KRW 10.5 trillion without much problem. Within the changing environment, SK Telecom will maintain its market leadership to develop diverse new content, convergence services, invest in the HSDPA nationwide network, and strengthen its overseas businesses in China, Vietnam and the U.S. to achieve ongoing growth."
Having reached the target of 20 million subscribers, consistent increase in subscribers have led to a rise in voice revenue, and readjustment of connection fees announced in September have led to a quarter-to-quarter revenue growth of 2.8%, and a year-on-year increase of 4.5% to record KRW 2.7125 trillion.
With a drop in marketing costs, operating income was KRW 758.1 billion, a 22.4% growth from the prior quarter, and a 13.0% year-on-year rise due to an increase in revenue and readjustment of connection fees. Net income recorded KRW 456.8 billion, growing 22.4% from the prior quarter, but dropping 22.3% from the same period of last year when non-operating income was reflected due to the sale of SK Teletech.
Marketing expenses grew 13.2% year-on-year to KRW 512.7 billion, but was a drop of 14.5% from the prior quarter, taking up 18.9% of revenue. This was the result of efficient marketing expenditure with the maintenance of market leadership despite the impact from implementation of handset subsidies early this year and ongoing efforts for market stabilization.
ARPU was KRW 45,236, a 2.0% and 0.7% quarter-to-quarter and year-on-year increase.
SK Telecom’s CFO Hah Sung-Min remarked "Based on the cumulative performance up until the third quarter, we will be able to achieve the revenue guidelines presented earlier this year of KRW 10.5 trillion without much problem. Within the changing environment, SK Telecom will maintain its market leadership to develop diverse new content, convergence services, invest in the HSDPA nationwide network, and strengthen its overseas businesses in China, Vietnam and the U.S. to achieve ongoing growth."