SK Telecom Q2 net profit down 67.6% after chip business spin-off


Headquarters of SK Telecom in central Seoul (SK Telecom)

SK Telecom Co., South Korea’s largest mobile operator, said on Tuesday its second-quarter net profit fell 67.6% from a year earlier, mainly due to fallout from its operations. of semiconductors last year.

The company posted net profit of 258.1 billion won ($197.7 million) on a consolidated basis in the three months to June, up from 795.7 billion won a year earlier, it said. the company in a regulatory filing.

Operating profit rose 16.1 percent year-on-year to 459.6 trillion won, and sales rose 4 percent to 4.28 trillion won.

Earnings fell short of market expectations. Analysts’ average net profit estimate was 317.9 billion won, according to a survey by Yonhap Infomax, the financial data company of Yonhap News Agency.

The company said its year-over-year drop in net profit was mainly attributed to excluding SK hynix Inc. stock gains from its earnings, following the transfer of the chip manufacturing business to SK Square. Co. in November.

SK Square, the mobile operator’s spin-off investment company, was set up in November to oversee SK hynix and other non-telecom technology units of the SK group, including app marketplace operator ONE store, the 11Street e-commerce platform and T Map Mobility.

SK Telecom said sales of its Internet service provider (ISP) subsidiary SK Broadband rose 3.6% to 1.33 trillion won. SK Broadband’s operating profit also rose 21.8 percent to 78.2 billion won.

SK Telecom said sales of its enterprise business, which provides data center and cloud-related services, also rose 13.8 percent to 374 billion won. Monthly active users of its ifland metaverse platform reached 1.63 million at the end of June. (Yonhap)


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