SK Telecom 1Q08 Net Income Down 3% despite Revenue Growth

(Business News & Technology News, 24 Apr 2008)

By Stephen Las Marias, Editor


SK Telecom, South Korea's leading mobile carrier, posted a net income of 382.9 billion won ($384.34 million at $1=KRW996.254), down 3.4 percent year-on-year, despite a 4.6 percent increase in revenue to $2.847 billion backed by continued subscriber growth.

However, revenue was down 2.7 percent sequentially due to the company's T-to-T Calling Plan released in October last year and 30 percent reduction in phone-mail tariff earlier this year. Operating income was $556 million, also down 16.3 percent compared with the same period last year.

With the lowered phone-mail tariff and the release of the "ting" Control Rate, SK's capped mobile plan for teenagers, the company's wireless Internet revenue declined to $599.5 million, down by 11.8 percent on-year and 17.3 percent sequentially.

Marketing expenses, which accounted for 27 percent of the total revenue, increased 30.7 percent year-on-year to $769.68 million as competition in the WCDMA market intensifies. However, the company says this is 10.2 percent less from the marketing expenses in the previous quarter.

Click here for more information on SK Telecom