SK Telecom’s Q3 profit jumps more than 44% on equity gains from SK Hynix unit

South Korean operator SK Telecom posted revenue of KRW 4.73 trillion for the third quarter of 2020, which represents an increase of 3.7 percent year-on-year. Operating income reached KRW 361.5 billion, growing by 19.7 percent in the period. Growth was mainly boosted by improved performance of SK Telecom’s mobile communication business and steep growth of its new businesses, the company said. Net income jumped 44.2 percent year-on-year, boosted by increased equity method gains from SK Hynix.

SK Telecom’s new businesses, including media, security and commerce, generated combined total revenue of KRW 1.527 trillion, which represents a growth of 18.9 percent year-on-year, as they each achieved a two-digit year-on-year revenue growth, the company said. Their combined total operating income topped KRW 100 billion for the first time, backed by a 40.3 percent year-on-year growth.

SK Telecom’s media business reached revenues of KRW 966.8 billion in this year’s third quarter, up 20.3 percent year-on-year, affected by the growth of the IPTV business and SK Broadband’s merger with T-broad. SK Broadband ended September with 8.5 million paid IPTV subscribers, following 129,000 net subscriber adds in the third quarter.

The company’s security business ADT Caps and SK Infosec posted a quarterly revenue of KRW 353.3 billion, up 15.5 percent year-on-year. SK Telecom’s commerce businesses 11st and SK Stoa reported KRW 206.6 billion in revenue for the third quarter, expanding by 18.7 percent year-on-year. 

SK Telecom’s revenue for its mobile communication business increased by 1 percent year-on-year to KRW 2.941 trillion. The operator ended September with 4.26 million 5G subscribers.

Comments are closed.