1 Posts about 'Profit'
Stagnation of SKT's Growth :: 2008/10/31 00:46
The biggest mobile operator in Korea, SK Telecom announced 57% decline in its third-quarter profit. The higher marketing costs seems to be a root cause of the decline.
SK Telecom has competed with KTF in order to attract customers with WCDMA(3G) service. SK Telecom has maintained its doninant position with market share of over 50%. However, SK Telecom has poured extraordinary marketing cost for attracting 3G service users. Although SK Telecom succeeded to defend its market position against KTF and LG Telecom, the total number of mobile services has not increased. Because most of 3G service users are not new users of mobile service but existing users who only change their mobile service from 2G to 3G.
The penetration rate of Korea's mobile market is already over 90%. Additional growth in the domestic market might be not expected any more except for mobile data service area.
Please refer to the below table regarding SK Telecom's profit.
| (Unit : $Bil) | Q3.2007 | Q4.2008 | Increase Rate |
| Profit | 776.8 | 333.6 | -57% |
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