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(LEAD) SK Telecom Q1 net down on reduced equity gains, 5G costs

All News 09:53 May 07, 2020

(ATTN: CHANGES headline, lead; UPDATES throughout)

SEOUL, May 7 (Yonhap) -- SK Telecom Co., South Korea's top mobile carrier, said Thursday its net income dropped 17.9 percent from a year earlier due to reduced equity gains and investments related to its 5G service.

In a regulatory filing, SK Telecom reported a net income of 306.8 billion won (US$250 million) in the January-March period on a consolidated basis, down from 373.6 billion won a year ago.

The company said that operating profit for the first three months of the year fell 6.4 percent on-year to 302 billion won, although its annual revenue increased 2.7 percent on-year to 4.45 trillion won.

SK Telecom attributed its profit decline to equity ties with chipmaking affiliate SK hynix Inc.

SK Telecom holds a 20 percent stake in SK hynix, which reported a 41 percent drop in net profit in the first quarter of the year.

Its increased marketing expenses for 5G service and depreciation cost also dragged down the bottom line, according to the mobile carrier.

This photo, taken Feb. 26, 2020, shows SK Telecom Co.'s headquarters in Seoul. (Yonhap)


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