IBK Securities on the 31st said uncertainty over fourth-quarter results and dividends for SK Telecom is increasing. It lowered the target price to 64,000 won from 66,000 won and maintained a buy rating.
On a consolidation basis, SK Telecom's third-quarter revenue was 3.9781 trillion won and operating profit was 48.4 billion won. The figures fell 12.2% and 90.9%, respectively, from a year earlier. On a separate basis, operating profit posted a 52.2 billion won loss. The company cited subscriber churn and the implementation of an August rate discount and strengthened membership benefits.
However, it is not as weak as feared due to the hacking incident in the third quarter. It is better than the market consensus for revenue and operating profit of 3.9382 trillion won and 10.7 billion won, respectively.
Although results were better than feared, the stock fell on the 30th on news that no dividends would be paid for the third quarter. This is the first time since the dividend system was introduced in the second quarter of 2021 that no dividends will be paid. The outlook for earnings is also uncertain. Since the hacking incident, subscribers have decreased by 700,000, and the annual revenue loss is estimated to reach 250 billion won.
Researcher Kim Tae-hyun at IBK Securities said, "One-off expenses related to the ongoing voluntary retirement program are also expected to be reflected in the fourth quarter, so near-term earnings expectations are limited."