Q4 net profit down 61% at SK Telecom

South Korea’s SK Telecom has posted a 61% year-on-year fall in net profit in the fourth quarter of 2011, and a 10.4% decrease in the bottom line for the full year, which reached KRW1.58 trillion (USD1.41 billion), on annual revenues that rose by 2.2% to KRW15.95 trillion. The group said that while growing wireless internet revenues boosted its turnover, profit margins were squeezed by regulatory cuts to its mobile rates as well as the increased CAPEX needed to upgrade its networks. Revenues fell by 2.3% year-on-year in 4Q11 to KRW3.93 trillion, again reflecting tariff cuts, as net profit dropped to KRW196 billion, and three-month operating profit (EBIT) dipped by 35.7% to KRW329 billion.