SK Telecom’s new businesses boost Q3 earnings
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Faye Sutton
| 06 November 2020
Korean telco SK Telecom has reported year on year growth in revenue and operating income of 3.7% and 19.7% respectively, as it announced its Q3 results.
SKTelecom 5G 2Jan2019

The company puts this down to improved performance of its mobile communication business and steep growth of its new businesses – media, security and commerce.

SKT announced its Q3 earnings on a K-IFRS consolidated basis, with revenue of KRW 4.731 trillion, operating income of KRW 361.5 billion, and net income of KRW 395.7 billion.

Net income grew by 44.2% affected, says SKT, by factors including increased equity method gains from SK Hynix.

SKT’s media, security and commerce businesses had a combined total revenue increase of 18.9% year-on-year to KRW 1.527 trillion as they each achieved a two-digit YoY growth in their revenues. Their combined total operating income has exceeded KRW 100 billion for the first time backed by a 40.3% YoY growth.

The media business posted KRW 966.8 billion in revenue, increasing 20.3% YoY, boosted by the growth of the IPTV business and SK Broadband’s merger with T-broad. By strengthening its content provision and reorganising its mobile services, SK Broadband secured a total of 8.5 million paid IPTV subscribers as of the end of September after adding 129,000 subscribers in the third quarter. Last month it expanded its 5G content business in a deal with Jump Studio.

SKT is keen to push its mobile business to the fore, with plans for an IPO for its One Store mobile app market. It also plans to establish a specialised mobile company based on its T Map platform in areas of parking and advertising; all-in-one Mobility as a Service (MaaS) that offers means of transportation through subscription; and taxi-hailing service with its strategic partner Uber.

SK Telecom’s revenue for its mobile communications business increased by 1% YoY to KRW 2.941 trillion. Despite decreased sales caused by the termination of its 2G service and prolonged impact of the pandemic, SKT says it continues to sustain its leadership in the 5G era, with 4.26 million 5G subscribers as of the end of September, and will continue to enhance 5G network quality and expand services.

Yoon Poong-young, CFO of SKT, commented: “Our efforts to enhance corporate value are turning into meaningful and tangible results. We will secure growth engines based on our five major businesses, while further solidifying our leadership in 5G to turn into a global technology company with unmatched competitiveness in ICT.”