SK Telecom posts 2% increase in revenue to 3.98 trillion won in first quarter

Telecom Lead Asia:
SK Telecom has posted revenue of 3.98 trillion won for the first quarter of


Promotional campaigns for faster fourth-generation mobile
services using the LTE technology helped the Asian telecom operator post
significant revenue.


SK Telecom’s first-quarter net profit fell 39.8 percent to
323.3 billion won ($286.5 million) in the first quarter. Rising investment
costs for advanced telecom networks and a cut in mobile charges were the main

Its operating profit during the first three months of the year declined by 26.4
percent from a year earlier. Operating profit dropped 26.4 percent to 452.3
billion won.

“A cut in mobile charges and investments for networks to respond to higher data
traffic amid the explosive demand for data-intensive devices such as tablets
and smartphones hurt us,” said an SK Telecom spokesman.

SK Telecom began to cut its monthly basic rates for its customers by 1,000 won
from September last year. It was the first local mobile carrier that was
surrendered to the government’s demands to lower monthly mobile charges.

LG Uplus, the smallest local carrier, is seeing more LTE customers and is
involved in a neck-and-neck race with SK Telecom in the new area. Competition
among local carriers is set to intensify from the second quarter as they
promote their LTE services, another challenging factor for SK, according to a
report in Korea Times. 

SK Telecom said it will report better earnings in upcoming quarters, citing a
growing number of its LTE users and healthy demand for chip-embedded digital
devices such as smartphones and tablets, which is good for SK hynix.

“SK is still positive of having over 6 million LTE customers by the end of this
year and that will help us see an increased average revenue per user (APRU)
rate from customers,” said the SK Telecom official.

In a separate statement, the company said it has collaborated with Nokia
Siemens Networks to export SK’s patented Smart Push technology that prevents
bottlenecks in LTE and 3G networks.

SK said the partnership is a part of its all-in LTE strategy and stressed the
collaboration will help it yield much revenue.

[email protected]