SK Telecom Q1 Net Up 37.3 pct on Increased Dividends | Be Korea-savvy

SK Telecom Q1 Net Up 37.3 pct on Increased Dividends

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

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

SEOUL, May 10 (Korea Bizwire)SK Telecom Co., South Korea’s largest wireless carrier, said Wednesday its first-quarter net profit jumped 37.3 percent from a year earlier thanks to increased dividend income.

The company logged a net profit of 302.5 billion won (US$228.6 million) on a consolidated basis in the January-March period, down from 220.3 billion won a year earlier, the company said in a regulatory filing.

Operating profit rose 14.4 percent on-year to 494.8 billion won for the quarter, and sales increased 2.2 percent to 4.37 trillion won.

The earnings beat market expectations. The average estimate of net profit by analysts stood at 281.3 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

The company said the rise in net profit came from increased dividends.

The company saw its 5G service subscribers reach 14.15 million, accounting for more than 60 percent of its total mobile handset subscriptions.

SK Telecom said sales of its business, which provides data center and cloud-related services, grew 5.8 percent to 386.2 billion won for the first quarter, while its media business posted 393.2 billion won in sales, also up 10.2 percent from a year earlier.

Shares in SK Telecom rose 2.37 percent to close at 49,750 won, outperforming the broader Korea Composite Stock Price Index’s 0.54 percent loss.


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