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(LEAD) SK Telecom's Q4 profit soars 62 pct on reduced costs

All News 10:10 February 03, 2017

(ATTN: ADDS details from para 5)

SEOUL, Feb. 3 (Yonhap) -- SK Telecom Co., South Korea's largest mobile phone carrier, said Friday its net profit for the fourth quarter of last year jumped 61.7 percent on-year, backed by a decline in marketing costs.

SK Telecom reported a net profit of 474.7 billion won (US$413 million) for the October-December period of last year, compared with a profit of 293.4 billion won for the same quarter in 2015, the company said in a regulatory filing.

Fourth-quarter operating profit, however, fell 24.8 percent on-year to 301.9 billion won. Sales for the quarter stood at 4.35 trillion won, down 0.62 percent from a year earlier.

For all of 2016, SK Telecom reported a net profit of 1.6 trillion won, up 9.5 percent on-year. Its full-year sales fell 0.3 percent to 17 trillion won last year.

(LEAD) SK Telecom's Q4 profit soars 62 pct on reduced costs - 1

SK Telecom attributed the decline in quarterly and annual operating profits to losses stemming from its affiliates, including an online shopping website, "11st Street."

At the end of last year, SK Telecom's mobile phone subscribers rose 3.4 percent on year to 29.6 million.

SK Telecom's marketing spending fell 3.3 percent on year to 2.95 trillion won last year.

South Korean telecom firms have also benefited from a law that has kept fierce competition to woo customers with hefty subsidies in check.

SK Telecom aims to generate 17.8 trillion won in revenue for this year and spend 2 trillion won in capital spending, the company said.

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