※ All business performance figures are based on International Financial Reporting Standards (IFRS), which was also applied to the figures for the previous year, for comparison of period-specific performance. Summary chart of non-consolidated figures is also provided.

Seoul, Korea, 4 August 2011 – SK Telecom (NYSE:SKM) announced its earnings on a IFRS consolidated basis for the second quarter of 2011: revenue of KRW 4.041 trillion, operating income of KRW 659.7 billion and net income of KRW 465.4 billion.

The revenue grew 5.7% year-on-year (YoY) and 3.4% quarter-on-quarter (QoQ) as sales of platform business and new business jumped 84.9% YoY.

Operating income climbed 2.0% YoY and 7.4% QoQ helped by higher revenues and market stabilization efforts, despite an increase in operating cost including depreciation cost caused by expanded network investments. Meanwhile, net income jumped 3.7% YoY.

EBITDA marked KRW 1.265 trillion, increasing by 8.0% YoY and 5.4% QoQ. EBITDA margin stood at 31.3%, climbing 0.7%P YoY and 0.6%P QoQ.

SK Telecom secured 7.5 million smartphone subscribers as of the end of June and expects to exceed its 10 million smartphone subscriber target by year-end. 

On a non-consolidated basis, SK Telecom recorded KRW 3.194 trillion in revenue, KRW 631 billion of operating profit and KRW 474.4 billion of net income. Compared to the same period last year, the revenue and net income went up 3.8% and 2.7%, respectively, while operating income dropped 2.2%.

SK Telecom’s Chief Financial Officer Ahn Seung-Yun said, "As a mobile operator, SK Telecom will maintain its leadership position in the wireless data market by offering differentiated LTE network quality. Meanwhile, SK Telecom aims to create a flexible environment for business development by spinning off its platform business and nurturing it as the company’s strong growth engine."