On account of increase in wireless internet revenue and subscribers base
South Korean mobile carrier SK Telecom has reported an increase of 4.6% in its net profit for the second quarter of 2009 due to an increase in its wireless internet revenue and subscribers base.
The company has posted a profit of KRW311.6 billion for the second quarter of 2009, compared to profit of KRW298 billion for the corresponding period last year.
Similarly, the operating income rose by 3.8% to KRW553.4 billion when compared to KRW533 billion, for the same quarter a year-ago. Overall revenue increased by 4.7% to KRW3.068 trillion while it was KRW2.931 trillion a year ago.
The income from wireless internet business increased 11.8% year-on-year to KRW671.2 billion due to growth in flat-rate data plan subscribers. The flat-rate data plan subscriber count reached 3.18 million, up 33% year-on-year while the cumulative number of subscribers climbed up 5% to 23.83 million, compared to second quarter of 2008.
Commenting on the results, Dong-Hyun Jang, CFO of SK Telecom, said: The Korean mobile telecommunications market in the second quarter saw a fierce marketing competition among operators. However the market is expected to stabilize as we enter the second half of 2009.
“Looking forward, SK Telecom plans to strengthen its core competency, which includes promoting further growth in the wireless internet business by expanding our smartphone line-up and offering a wide variety of data plans. Adding to this, SK Telecom will also continue to focus our efforts to secure new growth drivers.