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SK Telecom Q3 Earnings Drop Due To Galaxy Note 7 Crisis


SK Telecom Q3 Earnings Drop Due To Galaxy Note 7 Crisis

The Q3 earnings of South Korean telecom company SK Telecom dropped 13.5%, mainly due to Samsung Galaxy Note 7 crisis. The operating profit amounted to 424.3 billion won (US$372 million).

The revenue also dropped 0.4% on-year to 4.24 trillion won, and net profit dropped 15.63%. The average revenue per user (ARPU) for the quarter fell 0.8%. Besides the Galaxy Note 7 debacle, the number of customers subscribed to a special call plan increased. The special call plan provides a discount on call and data charges instead of offering one-time subsidy per service contract.

In the quarter, SK Telecom started offering the mobile navigation service ‘T Map,’ free-of-charge to the subscribers of other Korean mobile carriers. Thus, the number of users of T Map grew to 9.18 million by the end of September 2016. Similarly, SK Telecom has opened ‘T Phone’ free-of-charge to non-SK Telecom customers in July 2016. The number of T Phone subscribers has crossed 10 million as of August 2016.

“We expect that our strategy to fully open up major platforms including T Map and T Phone will lead to a successful outcome in the mid-to long-term,” said Hwang Keun-joo, CFO and Head of Strategy and Planning Division at SK Telecom.

In September 2016, SK Telecom launched NUGU, a voice-activated Artificial Intelligence (AI) service and plans to collaborate with partners to promote AI industry in Korea.

“SK Telecom will accelerate its transformation into a next-generation platform company and keep developing customer-oriented products and services,” Keun-joo added.

In the segment of internet-of-things (IoT), SK Telecom has deployed 24 different IoT services in areas including gas and electricity.

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Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.



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