Seoul: SK Telcom, South Korea's largest mobile-phone operator, reported second-quarter profit climbed 17 per cent as demand for computer-like smartphones drove up wireless internet bills.
Net income increased to 364 billion won (Dh1.12 billion) in the three months ended June 30 from 311.6 billion won a year earlier, while sales rose 0.7 per cent, Seoul-based SK Telecom said yesterday. Analysts expected profit of 410 billion won, according to the average of nine estimates in the last 28 days compiled by Bloomberg.
Wireless internet sales increased 6.4 per cent, led by demand from customers switching to smartphones that send e-mails, download mapping data and surf websites.
Galaxy phones
Earnings may extend their gains after the company became the nation's exclusive carrier offering Samsung Electronics's Galaxy S phone, which is selling faster than Apple's iPhone in Korea, according to analysts including Yang Jong In.
"The Galaxy S is getting a lot of attention, and we expect the momentum to continue to boost earnings in the third and fourth quarters," Yang at Korea Investment & Securities in Seoul said before the earnings announcement. "Smartphones, including the Galaxy S were definitely a positive factor last quarter."
SK Telecom is betting on wireless internet sales and new businesses to help offset stalling revenue growth in a market where more than 95 per cent of people own a mobile phone.
