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(2nd LD) SK Telecom Q2 net surges on increased equity gains, rise in 5G users

All News 11:26 August 06, 2020

(ATTN: ADDS more info in 3rd para, from 10th para)

SEOUL, Aug. 6 (Yonhap) -- SK Telecom Co., South Korea's top mobile carrier, said Thursday its second-quarter net income jumped 66.8 percent from a year earlier due to increased equity gains and improved mobile business.

Net income reached 432.2 billion won (US$365.1 million) in the April-June period, compared with 259.1 billion won the previous year, the company said in a regulatory filing.

Sales came to 4.6 trillion won in the second quarter, up 3.7 percent from the previous year, while operating profit rose 11.4 percent to 359.5 billion won over the same period.

The corporate logo of SK Telecom Co. is shown in this undated photo provided by the company. (PHOTO NOT FOR SALE)(Yonhap)

SK Telecom said a strong performance from its chipmaking affiliate SK hynix Inc. improved its bottom line.

Equity gains totaled 267 billion won in the second quarter, compared with 136.1 billion won a year earlier, according to the company.

SK Telecom holds a 20 percent stake in the chipmaker, which reported last month that net income more than doubled on-year in the second quarter.

The mobile carrier said its mobile network business recorded improved sales despite the COVID-19 pandemic.

Sales from its mobile network business reached 2.94 trillion won in the second quarter, up 3.2 percent from a year earlier, thanks to a rise in 5G subscribers.

The carrier had 3.35 million 5G subscriptions in the April-June period, up 700,000 from the previous quarter, it said.

As of the second quarter, SK Telecom had a total of 24.15 million handset subscribers, up from 24.05 million a year ago.

The telecom operator said it spent 917.8 billion won on facilities investment in the second quarter, up 56.7 percent from a year earlier. Total investment in the first half of the year amounted to 1.2 trillion won.

The telecom operator's media business also reported improved results, with sales from its IPTV subsidiary SK Broadband Co. reaching 918.4 billion won, up 16.2 percent from a year earlier due to increased subscribers from its merger with No. 2 cable TV operator t-broad Co.

The merged entity, which launched in late April, had 8.4 million subscribers in the April-June period, compared with SK Broadband's 5.3 million subscribers in the first quarter.

SK Telecom's online and media commerce units posted sales of 192.6 billion won in the second quarter, up 8.5 percent from a year earlier, as consumers turned to online shopping amid the pandemic.


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