SKT-A Record 908 Billion Won Net Profits, 4 Trillion Won Turnover, but Stock Price Fall by Foreign Investors’ Sell-off

SK Telecom recorded historical performance in the first half of this year. It is the results of partly the effects of the merging of Shinsegue Telecom and partly the increase in the sales of wireless Internet.

At 15th of July, SK Telecom announced that the company had operated with 4.87 trillion won of turnover, 1.38 trillion won the operational profits, and 908 billion won of net profits. It includes 7 days performance of Shinsegue Telecom before merging it at 8th January 2002.

The performance records for the first half of this year are best since its establishment; The turnover increased by 40.2% compared to the first half of the last year, the operational profits by 29.7%, and net profits by 43.7%. The total sum of Telecom and Shinsegue Telecom operated last year separately increased as; turnover by 13.6%, operational profits by 21.2%, and net profits by 48.9% compared to the first half of the last year.

Particularly, the turnover of wireless Internet increased dramatically. The turnover of wireless Internet increased by 148% with 294.4 billion won. The monthly usage per subscriber has increased continuously from 182 minutes in the first quarters to 198 minutes the second quarters.

Park Tae Jin, The leader of Investors Relation of SK Telecom explained, “the rate lowered by 8.3%, and the rate for access to SK networks by other mobile telecom companies also lowered by 28%. However, the demand for wireless Internet and voice call increased, so monthly turnover per subscriber increased by 5% compared to the first half of the last year.

Even if the optimistic announcement, the share of SK Telecom closed with the price of 273,000 won by decreasing of 2,000 won compared to the previous day. It was mainly due to the sale of foreign investors. During this month, foreign investors record net sale of 170,000 SK shares (including net purchase of 28,000 at 15th).

However, this trend may be supposed to disappear within this month. According to a analyst of LG Stocks said “the bear market for SK reflects the excessive supply, but in long-term the demand and supply will equilibrate”

Im-Sook Ha Na-Yeon Lee artemes@donga.com larosa@donga.com