content area
Press Release
• Revenue KRW 2.8426 trillion, operating income KRW 662.2 billion, net income KRW 403.3 billion
• Despite the reduction in wireless Internet rates in January 2007, SK Telecom recorded sustained growth due to increase in subscribers
Seoul, Korea, 26 July 2007 - SK Telecom announced its earnings for the second quarter of 2007- revenue of KRW 2.8426 trillion, operating income of KRW 662.2 billion, and net income of KRW 403.3 billion. Compared to the first quarter of 2007, revenue and net income increased by 4.8% and 1.8% respectively, while operating income marked a KRW 245 million increase.
Despite the reduction in wireless Internet rates, revenue went up 4.8% from the previous quarter and 7.7% year-on-year due to the steady growth in subscribers. Backed by the increase in the number of flat rate subscribers, revenue from wireless Internet grew to KRW 704.5 billion, rising 4.1% quarter-on-quarter and 4.3% over the same period last year. Wireless Internet revenue accounted for 27.5% of total revenue excluding network interconnection fees.
Building on the revenue growth, operating income reached KRW 662.2 billion this quarter, gaining 6.9% year-on-year or an increase of KRW 245 million from the previous quarter. Net income grew 8.0% from the previous year and 1.8% quarter-on-quarter to KRW 403.3 billion.
Due to increased competition to attract new subscribers in the second quarter, marketing expenses jumped to KRW 703.1 billion, rising 17.3% year-on-year and 19.9% from the previous quarter. The ratio of marketing expenses to total revenue stood at 24.7%.
Backed by the increase in premium plan subscribers, ARPU (monthly revenue per user) grew 2.2% from the previous quarter to KRW 45,108.
SK Telecom’s CFO Sung-Min Ha said, “SK Telecom has no fixed plan for complete migration to WCDMA, but this will depend on future market demand and customer acceptance. We will launch a combined mobile and high-speed Internet product under the partnership with fixed-line broadcasting networks. We will deliver greater customer benefits by diversifying our product portfolio to expand to cable TV programs and more.”
Despite the reduction in wireless Internet rates, revenue went up 4.8% from the previous quarter and 7.7% year-on-year due to the steady growth in subscribers. Backed by the increase in the number of flat rate subscribers, revenue from wireless Internet grew to KRW 704.5 billion, rising 4.1% quarter-on-quarter and 4.3% over the same period last year. Wireless Internet revenue accounted for 27.5% of total revenue excluding network interconnection fees.
Building on the revenue growth, operating income reached KRW 662.2 billion this quarter, gaining 6.9% year-on-year or an increase of KRW 245 million from the previous quarter. Net income grew 8.0% from the previous year and 1.8% quarter-on-quarter to KRW 403.3 billion.
Due to increased competition to attract new subscribers in the second quarter, marketing expenses jumped to KRW 703.1 billion, rising 17.3% year-on-year and 19.9% from the previous quarter. The ratio of marketing expenses to total revenue stood at 24.7%.
Backed by the increase in premium plan subscribers, ARPU (monthly revenue per user) grew 2.2% from the previous quarter to KRW 45,108.
SK Telecom’s CFO Sung-Min Ha said, “SK Telecom has no fixed plan for complete migration to WCDMA, but this will depend on future market demand and customer acceptance. We will launch a combined mobile and high-speed Internet product under the partnership with fixed-line broadcasting networks. We will deliver greater customer benefits by diversifying our product portfolio to expand to cable TV programs and more.”