SK Telecom sees net profit fall on marketing costs
South Korea's leading mobile carrier SK Telecom said Thursday its net profit fell 3.4 per cent in the first quarter from a year earlier on increased marketing costs.
By Agencies |
SEOUL: South Korea's leading mobile carrier SK Telecom said Thursday its net profit fell 3.4 per cent in the first quarter from a year earlier on increased marketing costs.
Net profit stood at 383 billion won ($385 million) in January-March compared with 396 billion a year earlier, the company said in a statement.
Sales rose 4.6 per cent to 2.84 trillion won in the three-month period while operating profit fell 16.3 per cent to 554 billion won.
The number of subscribers rose eight percent to 22.37 million, helping the company maintain its market leadership with a more than 50 per cent share.
The company attributed the drop in the bottom line to a recent cut in text messaging charges and increased marketing competition among rival carriers.
"With competition in the wireless Internet market heating up, marketing expenses increased 30.7 percent year-on-year, hurting the bottom line," the company said.
SK Telecom said it is also facing fiercer competition after the three mobile carriers were allowed by the government to pay subsidies to new clients.
Net profit stood at 383 billion won ($385 million) in January-March compared with 396 billion a year earlier, the company said in a statement.
Sales rose 4.6 per cent to 2.84 trillion won in the three-month period while operating profit fell 16.3 per cent to 554 billion won.
The number of subscribers rose eight percent to 22.37 million, helping the company maintain its market leadership with a more than 50 per cent share.
The company attributed the drop in the bottom line to a recent cut in text messaging charges and increased marketing competition among rival carriers.
"With competition in the wireless Internet market heating up, marketing expenses increased 30.7 percent year-on-year, hurting the bottom line," the company said.
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SK Telecom said it is also facing fiercer competition after the three mobile carriers were allowed by the government to pay subsidies to new clients.
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