Korean communications provider SK Telecom posted a net income of KRW 1.12 trillion for FY 2012, down 29.5 percent from KRW 1.58 trillion in 2011. Revenues rose 2.3 percent to KRW 16.30 trillion on the continued growth in LTE subscribers and improved results of subsidiary companies including SK Planet, SK Broadband, and PS&Marketing. However, operating income fell by 23.3 percent year-on-year to KRW 1.76 trillion as the September 2011 tariff cut and the increased LTE subscriber acquisition-related marketing costs reduced earnings. EBITDA fell by 7.8 percent year-on-year to KRW 4.34 trillion and EBITDA margin slipped to 26.6 percent from 29.6 percent a year earlier. Capex for the year 2012 stood at KRW 2.86 trillion, representing a 25.5 percent rise compared to that of the year 2011, as the company rolled out and upgraded its LTE network. SK Telecom ended 2012 with 26.96 million mobile subscribers, adding 409,000, customers in the year, and the LTE base rose to 7.53 million from 634,000 at end-2011.
