[Concall] SK Telecom "If Dividend Policy Changes, Dividend Per Share Will Increase"

[Asia Economy Reporter Seulgina Jo] SK Telecom announced that if it changes its dividend policy in the future, the dividend per share will increase.

Yoon Poong-young, SK Telecom Chief Financial Officer (CFO), said during a conference call held after the Q1 earnings announcement on the 7th, "The discussion on changing the dividend policy started from the consideration of whether a fixed cash dividend is optimal in a business portfolio that has diversified. We are currently considering all possibilities, including share buybacks and linking dividends to subsidiary performance," he said.

He explained, "Specific details will go through in-depth internal discussions and the board of directors," and added, "If it changes to a method other than fixed cash dividends, it will be reviewed in a way that increases the dividend per share."

Meanwhile, SK Telecom, the first among the three major domestic telecom companies to announce Q1 earnings, achieved quarterly results of KRW 4.4504 trillion in sales and KRW 302 billion in operating profit.

Growth continued mainly in new growth sectors such as media and security, with sales increasing by 2.7% compared to the same period last year. However, operating profit decreased by 6.4% due to the ongoing burden of 5G investments combined with the impact of the novel coronavirus disease (COVID-19). Net profit recorded KRW 306.8 billion, down 17.9% due to the effect of equity-method gains from SK Hynix shares.

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