SK Telecom earnings fall

SK Telecom Co., South Korea’s largest mobile-phone operator, reported its first drop in quarterly profit since 2002 after losing market share and spending heavily on marketing. Second-quarter net income fell 46 percent to 299 billion won ($257 million), compared to 551 billion won a year ago, after marketing costs jumped 47 percent, SK Telecom said in a statement. Operating profit fell 43 percent to 463 billion won and sales were little changed at 2.4 trillion won. Earnings and sales were below expectations. Chief Executive Kim Shin-bae had to boost spending to stem an exodus of subscribers after the government changed a rule allowing customers to keep their phone numbers when they switched carriers. “The past quarter was as bad as it could get,” said Kim Seong-ki, of Chohung Investment Trust Management Co. “It looks like everything that could go wrong happened within that quarter,” he added. SK Telecom’s Mr. Kim said in March that he expects earnings to fall this year.