[THE INVESTOR] SK Telecom’s average revenue per user downturn will slow down while revenue from 11Street is improving, said KB Investment and Securities on Oct. 12 maintaining a “buy” recommendation and 330,000 won (US$290.54) target price.
Weighed down by decrease in revenue from mobile phone sector and one-off costs, its operating profit in the third quarter will decline 17.2 percent on-year to 319.4 billion won, 13 percent lower than market estimates. The slight decline in ARPU and subscribers have dented revenue but will pick up. Meanwhile its online mall 11Street’s strategic changes have resulted in shrinking losses and having attracted investment recently its earnings probably have improved, said analyst Kim Jun-seob.
The telecoms heavyweight’s operating profit in the fourth quarter will climb up 1.3 percent on-year to 304.5 billion won and its earnings will progressively improve, he forecast.
By Hwang You-mee (firstname.lastname@example.org)