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SK Telecom suffers 67.6% drop in Q2 gains post chip business spinoff

SK Telecom suffers 67.6% drop in Q2 gains post chip business spinoff
SK Telecom suffers 67.6% drop in Q2 gains post chip business spinoff

As per reliable sources, South Korean wireless telecommunications behemoth SK Telecom Co. Ltd suffered a 67.6% reduction in Q2 profit due to its spinoff of semiconductor operations, which was launched in 2021.

The company reportedly registered a combined net profit of USD 197.7 million for three months ending in June, as opposed to USD 606.6 million in the previous year.

On the other hand, operating profits recorded a growth of 16.1% to USD 350.4 million and sales rose by 4% to USD 3.26 billion.

A spokesperson from the company has claimed that the primary reason for the poor performance in the second quarter is the corporation’s failure to include equity gains from SK Hynix Inc., after the relinquishment of the chip-making business to its counterpart, SK Square Co. Ltd.

For the uninitiated, semiconductor investment company, SK Square Co. Ltd was launched in November 2021, to supervise SK Hynix Inc. and other affiliates under SK Group including the e-commerce platform 11Street, smartphone company T Map Mobility Co. Ltd, and mobile app market One Store.

According to trade experts, the net profits were predicted to reach almost USD 242.4 million in the second quarter, a feat that is yet to be accomplished.

On a positive note, the company claimed that revenue from its telecommunications subsidiary SK Broadband Inc., climbed 3.6 % to touch the valuation of USD 1.01 billion while operating profits of the broadband corporation clenched a 21.8% rise to amount up to USD 59.6 million, according to quarter-end results.

In addition, revenue from the telecom giant’s enterprise business which offers data center and cloud-related services stood at USD 285 million at a growth of 13.8%, whereas monthly active users of its metaverse platform ‘ifland’ surged to 1.63 million as of June this year.

Source Credits: - https://www.koreaherald.com/view.php?ud=20220809000518&np=1&mp=1

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.