SK Telecom Sees 2006 Wireless Data Service Revenue +20%

SEOUL (Dow Jones)--SK Telecom said Thursday it expects its wireless Internet data service business to post 20% revenue growth in 2006.

"This year, we will realize an annual growth rate of 20% in the wireless Internet data service. With the launch of HSDPA (high speed downlink packet access) services in May, growth will likely accelerate," said Sung-Min Ha, chief financial officer of SK Telecom, in a conference call following the company's first-quarter earnings announcement.

In the three months ended March 31, SK Telecom's net profit was KRW337.2 billion, down from KRW368.4 billion a year earlier. Revenue rose 5% to KRW2.54 trillion from KRW2.41 trillion. Operating profit was up 9% at KRW668 billion from KRW614 billion.

The CFO said the company will earmark KRW570 billion in capital expenditure for the HSDPA business out of a total capex of KRW1.60 trillion for 2006.

Ha said the company expects wages to continue to be about 4%-5% of total revenue this year. "We set aside KRW140 billion in severance pay for this year in the first quarter," he said.

Among the SK Telecom's overseas businesses, the company hopes to widen its subscriber base in Vietnam to one million subscribers this year from 480,000 currently.

-By Kyong-Ae Choi, Dow Jones Newswires; 822-732-2165; kyong-ae.choi@dowjones.com

-Edited by Leslie Shaffer

(END) Dow Jones Newswires"

Posted to the site on 27th April 2006