April 26, 2024

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[THE INVESTOR] SK Telecom’s earnings prospects for next year are positive, said Hana Financial Investment on Oct. 4 maintaining a “buy” recommendation and 320,000 won (US$283.86) target price. 

Operating profit from the telecom sector is likely to advance as average revenue per mobile phone user rises next year while costs of marketing and depreciation decline. Earnings of subsidiaries are expected to improve as well, said analyst Kim Hong-sik.

The firm will decided early next year whether to spin off or maintain current formation to improve governance structure. The former is more likely as it will fundamentally eliminate any issues, forecast the analyst, adding that its corporate value will rise following a spin-off. 

By Hwang You-mee (glamazon@heraldcorp.com)