Korea’s telecommunications company SK Telecom reported a revenue of KRW 4.267 trillion in the second quarter of 2016, marking an increase of 0.3% year-on-year. The company’s profit has come to KRW 291billion.
The revenue of SK Telecom was primarily influenced by the sales of its subsidiaries including SK Broadband, said the company. The operating income of the company has declined 1.3% year-on-year to KRW 407.4 billion, majorly increased by the expenses caused by the growth in business expenses of its subsidiaries.
The total subscriber base of SK Telecom is 20.03 million, of which over 68.7% is the total mobile subscriber base. SK Telecom has also surged its CAPEX guidance for the year from KRW 2 trillion in February 2016 to KRW 2.1 trillion.
In an auction held in May 2016, SK Telecom has secured a pair of bandwidth blocs (10MHz bandwidth + 20MHz bandwidth) in the 2.6 GHz band. By the end of 2016, the company will deploy LTE network using the 30MHz bandwidth in the 2.6GHz band. This will help the company in rolling out LTE in Seoul and six metropolitan cities. By 2017, the company will expand this to 85 cities across the country, covering the entire areas of these cities with LTE by the end of 2018.
The company also eyes playing big on Internet of Things (IoT) platform such as connected cars and electric vehicles. For the purpose, it may make use of T Map, a service which it made free for the subscribers of other carriers in May 2016. By June 2016, the company completed LTE-M rollout and LoRaWAN across Korea, covering 99% of the population.
Elaborating on the success so far, Hwang Keun-joo, CFO and Head of Strategy and Planning Division at SK Telecom said, “Our decision to fully open up major products and services including T Map is a testament to our strong determination to transform into a platform company. Based on our efforts in the field of platform business, coupled with our unrivaled leadership in mobile telecommunications, we will continue to increase value for all stakeholders.”
The revenue figures of SK Telecom are based on Korean International Financial Reporting Standards (K-IFRS) and is on a consolidated basis for the second quarter of 2016.