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SK Telecom Announces 2Q 2019 Earnings Results

Financial results News - Published on Mon, 05 Aug 2019

Image Source: Business Korea
SK Telecom announced its earnings for the second quarter of 2019 on a K-IFRS 1115 consolidated basis: revenue of KRW 4.437 trillion, operating income of KRW 322.8 billion, and net income of KRW 259.1 billion.

On a consolidated basis, SK Telecom’s revenue and operating income increased by 2.4% and 0.1% respectively, QoQ. With a revenue turnaround in mobile communications business and sustained growth in media, security and commerce businesses, SK Telecom achieved improved earnings compared to the previous quarter.

Net income decreased by 30.7% QoQ due to decreased equity method gains from SK Hynix.

Since launching the world’s first 5G smartphone service on April 3, 2019, SK Telecom has taken up the largest 5G market share in Korea by securing 530,000 5G subscribers as of the end of June 2019.

On a non-consolidated basis, revenue increased by 1.3% QoQ to KRW 2.848 trillion. Mobile service revenue achieved a turnaround after declining for seven consecutive quarters since 4Q 2017.

Backed by its customer value innovation programs consistently implemented since 2018, SK Telecom has achieved a low churn rate of 0.9% and added about 100,000 new subscribers in the second quarter of 2019.
On a non-consolidated basis, operating income in mobile communications business fell by 10.0% QoQ to KRW 275.2 billion affected by a 3.9% QoQ increase in marketing expenses and reflection of 5G license fees for the first time.

SK Telecom has been carrying out company-wide efforts to allow 5G subscribers to experience stable network and differentiated service benefits.

The company started the world’s first 5G roaming service with Swisscom on July 17 and launched three innovative 5G AR and VR services to deliver immersive eSports broadcasting experience on July 26.

In the second half of this year, SK Telecom plans to build multiple 5G clusters – equipped with premium network quality and innovative services - in main areas across the nation to shift the competition paradigm of the telecommunications industry centered around 5G services.

The company expects the number of its 5G subscribers to surpass 2 million this year.

Mr Yoon Poong-young, Chief Financial Officer of SK Telecom said that “SK Telecom will continue to maintain its market leadership in 5G. We expect our enterprise value to be reevaluated by continuously expanding New ICT business centered on media, security and commerce.”

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Posted By : TelecomGuru on Mon, 05 Aug 2019
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