Analyst Note| Dan Baker |
SK Telecom’s, or SKT's, first-quarter 2021 result was strong with year-on-year revenue growth of 7.4%, operating income growth of 29% and earnings per share growth of 88%. Revenue growth was ahead of full year guidance of KRW 19.5 trillion, which implies 5% growth. Consolidation of t-broad in the first quarter this year but not 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 18% revenue growth and 53% growth in net profit year on year.