SK Telecom Co., South Korea’s largest cellular service, stated Wednesday its fourth-quarter web revenue fell 14 % from a 12 months earlier due primarily to one-time prices from its non-telecom spinoff.
Web revenue fell to 314.8 billion gained (US$263.4 million) within the October-December interval from a revenue of 365.9 billion gained the earlier 12 months, the corporate stated in a regulatory submitting.
Working earnings reached 226.7 billion gained, down 22.6 % from 292.7 billion gained the earlier 12 months, whereas gross sales rose 3.9 % to 4.29 trillion gained over the identical interval.
For the entire of 2021, the corporate loved a robust efficiency, with web revenue leaping 61.2 % to 2.42 trillion gained and working earnings growing 11.1 % to 1.39 trillion gained final 12 months. Annual gross sales rose 4.1 % to 16.75 trillion gained.
Gross sales from its cellular service grew to 2.59 trillion gained within the fourth quarter because of continued subscriber progress.
The cellular service’s 5G customers stood at 9.87 million as of the tip of final 12 months, accounting for almost half of whole cellular subscriptions to 5G networks, in keeping with authorities information.
The corporate stated its on-year lower in web revenue for the fourth quarter is principally blamed on one-off prices from worker bonuses associated to the non-telecom spinoff final 12 months.
On Nov. 1, SK Telecom cut up into two firms, spinning off the brand new funding firm SK Sq. within the newest transfer to make aggressive investments in new tech and semiconductor companies.
SK Sq. oversees 16 of SK Telecom’s current non-telecom and tech models, together with chipmaking affiliate SK hynix Inc., app market operator ONE Retailer, e-commerce platform 11Street and T Map Mobility.
The surviving SK Telecom largely focuses on its conventional telecom enterprise whereas advancing new companies, together with metaverse-based providers and synthetic intelligence.
SK telecom stated it should additional speed up the transformation into an AI and digital service firm by exploring new companies in metaverse, robotics and concrete air mobility.
“Our firm goals to succeed in 30 million month-to-month energetic customers on our metaverse platforms by 2025… and to speed up progress in progressive companies to succeed in an annual income of 23 trillion gained by 2025,” CEO Ryu Younger-sang stated throughout a convention name.
Ryu added the corporate will search to pursue a strategic merger and acquisition (M&A) with metaverse and tech-related firms to safe a enough variety of competent builders, in addition to alternatives for international M&As to develop into the worldwide market.
Shares in SK Telecom rose 0.54 % to 56,200 gained on the primary KOSPI market. The corporate reported its fourth-quarter earnings earlier than the market closed.