In the third quarter of this year, SK Telecom swung to a net loss on a consolidation basis for the first time in 23 quarters. Operating profit on a consolidation basis narrowly avoided a loss, but on a separate basis for SK Telecom alone, operating profit turned to a loss for the first time in 103 quarters. The fallout stems from large-scale compensation and a penalty surcharge tied to the hacking incident in April. The company said, "Due to poor performance, we decided not to pay a cash dividend for the third quarter of this year."
SK Telecom disclosed on the 30th that third-quarter operating profit on a consolidation basis was 48.4 billion won, down 90.92% from the same period a year earlier. Net income over the same period swung to a loss, coming in at a net loss of 166.7 billion won year over year. Third-quarter revenue this year was 3.9781 trillion won, down 12.23% from a year earlier.
SK Telecom's revenue on a consolidation basis was reduced by 538 billion won due to a customer appreciation package rolled out to address the hacking incident. The customer appreciation package includes a 50% bill discount for the month of Aug., 50GB of data for five months, and the T Membership customer appreciation program. In addition, a 134.8 billion won penalty surcharge from the Personal Information Protection Commission related to the hacking case was reflected in one lump sum in the third quarter, adding to the burden.
Operating profit came in higher than the securities market consensus, but revenue fell short. According to FnGuide, the securities market projected SK Telecom's third-quarter operating profit at 10.7 billion won on a consolidation basis and revenue at 3.9382 trillion won. Those represent declines of 97.98% and 13.11%, respectively, from a year earlier. The securities market also expected net loss to swing to 136.7 billion won year over year.
On a separate basis excluding affiliates, SK Telecom posted an operating loss of 52.2 billion won and a net loss of 206.6 billion won, turning to losses from the same period last year. Revenue on a separate basis was 2.6647 trillion won, down 16.8% year over year.