SK Telecom (SKT) registered growth across all business units and a surge in profit in Q2, despite increased investment in 5G and the ongoing impact of the Covid-19 (coronavirus) pandemic.
Net profit rose 66.8 per cent year-on-year to KRW432.2 billion ($364.8 million) on a higher contribution from subsidiary SK Hynix.
Operating revenue increased 3.7 per cent to KRW4.6 trillion. Mobile service revenue increased 3.5 per cent to KRW2.49 trillion, credited to 5G subscriber growth and rising data usage.
In a statement, CFO Yoon Poong-young said its diversified business portfolio centred around new businesses delivered tangible results, even as the pandemic continued to grip the nation.
He expects price pressure to continue diminishing in the second half, as the government pushes operators to avoid excessive competition.
Media business revenue grew 16.2 per cent to KRW918 billion, security was up 8.7 per cent to KRW323 billion and commerce rose 8.5 per cent to KRW193 billion
5G growth
The operator said subscriber growth accelerated in Q2, driven by an expanded handset range: it ended June with 3.35 million next generation customers, with 700,000 added.
Total mobile subscribers increased 4.6 per cent to 28.9 million, with ARPU flat at KRW30,158.
Capex increased 33.5 per cent KRW1.2 trillion in H1 as the company backed a government project to revitalise the economy following the pandemic.
In an earnings call, the CFO said SKT started a review to list its broadband, e-commerce and security subsidiaries.
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