Analyst Note| Dan Baker |
SK Telecom’s, or SKT's, second-quarter 2021 result was solid with year-on-year revenue growth of 4.7%, operating income growth of 10.8% and EPS growth of 85%. Revenue growth was broadly in line with full-year guidance of KRW 19.5 trillion, which implies 5% growth. Consolidation of t-broad in the second quarter this year, but not fully in the previous quarter, also helped operating profit growth. The net income growth was boosted by increased contributions from SK Hynix. SK Hynix--in which SKT has a 20.6% stake, which makes up around half of our SKT valuation--reported 20% revenue growth and 57% growth in net profit year on year.