[Concall] SKT "5G Competition Stabilizing... MNO to Turn Around in Second Half"

[Asia Economy Reporter Seolgina Jo] SK Telecom stated that a performance turnaround in the MNO sector, which has seen profitability decline due to investments in the 5G network, is expected in the second half of this year.

During a conference call held after the earnings announcement on the 7th, SK Telecom explained, "Since the fourth quarter of last year, competition in the 5G market has stabilized, and a stable situation is expected this year as well," adding, "The downward trend in MNO profits will stop." They also said, "This year, we will pursue MNO profit improvement through efficient investment and stable marketing," and "a turnaround is expected in the second half of this year. More meaningful profit improvements will be possible from next year."

SK Telecom's consolidated sales in 2019 amounted to KRW 17.7437 trillion, a 5.2% increase compared to the previous year, while operating profit decreased by 7.6% to KRW 1.11 trillion. Although sales increased due to the expansion of 5G subscribers and growth in the media business, the large-scale 5G investment burden and marketing costs negatively impacted operating profit. Net profit was limited to KRW 861.9 billion, a 72.5% decrease due to the equity-method gains from SK Hynix.

This content was produced with the assistance of AI translation services.