(2nd LD) SK Telecom net jumps 24.6 pct in Q3

(ATTN: UPDATES share price in para 4)
By Lee Youkyung
SEOUL, Oct. 29 (Yonhap) -- SK Telecom Co., South Korea's leading mobile carrier,
said Thursday its third-quarter earnings rose 24.6 percent from a year ago on
increased revenue from its wireless Internet service.

Net profit stood at 415.9 billion won (US$353 million) in the July-September
period, compared with 333.6 billion won a year earlier, the company said in a
regulatory filing.
Sales rose 5.4 percent from a year ago to 3.06 trillion won, and operating profit
climbed 22.8 percent to 618.8 billion won, it said.
Shares of SK Telecom closed at 180,000 won on the Seoul bourse Thursday, down
0.28 percent from Wednesday's close.
SK Telecom said sales from its wireless Internet service, or fees that mobile
subscribers pay to access the Internet via mobile handsets, increased 7 percent
on-year in the third quarter.
The surge in third-quarter earnings also resulted from its efforts to reduce
marketing and other costs, the company added.
During the three-month period, the company spent 834 billion won on marketing,
down 12 percent from three months earlier. The amount, however, was up 14.6
percent from a year earlier.
"The downtrend in marketing costs is expected to continue in the fourth quarter,"
said Jang Dong-hyun, SK Telecom's chief financial officer. "SK Telecom will
refrain from excessive marketing activity and adopt efficient ways to lure
customers."
As of the end of September, SK Telecom customers totaled 24 million, up 6 percent
from a year earlier, the company said.
Earlier Thursday, SK Telecom said it aims to post 20 trillion won in revenue in
2020 by providing information and communication technology (ICT) services to
corporate customers in retail, finance, education and healthcare.
"We have to find a new alternative for growth since the existing local
communications market is already saturated," chief executive officer Jung Man-won
told reporters. "SK Telecom will thus turn to ICT business to generate revenue."
He denied market speculation that LG Group's move to merge its three telecom
wings would trigger SK Telecom to absorb its broadband unit.
"We have never considered merging with our fixed-line affiliates," he said,
emphasizing that his firm's new business focus would be servicing information and
communication technologies to enhance the productivity of its corporate
customers.
Jung declined to comment on the details of the company's new projects.
ylee@yna.co.kr
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