SK Telecom enjoyed record year

SK Telecom, the largest mobile service carrier in Korea, announced that it had achieved a record performance in 2003 of 1.9 trillion won ($1.6 billion) in net profit, based on 9.5 trillion won in revenues. The net profit is a jump of 29 percent from 2002, and annual revenues grew 10 percent as well. Despite an average 7 percent cut in call rates in early 2003 and a 50 percent reduction in caller ID service rates, the average monthly calling time per subscriber increased by 3 percent to 197 minutes a month, and the number of subscribers increased from 17 million to 18 million, a company official said. Wireless Internet service seems to have cemented its position as the engine for the mobile company’s profitability. Revenues from wireless Internet soared by 81 percent to 1.3 trillion won in 2003 from 2002, the company said, thanks to the increase in the use of multimedia content through mobile phones and growing popularity of mobile handsets with color display. Revenue growth from the wireless Internet division, which amounted to 589 billion won, made up 66 percent of the 886 billion won of total increased revenue, SK said. In the fourth quarter of 2003, the company posted 2.5 trillion won in revenue, up 3 percent from the third quarter. Net profit dipped by 15 percent over the previous quarter to 433 billion won. Marketing expenses have increased in preparation for the introduction of the number portability system, the company said. by Kim Hyo-jin