Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
SKT pays out 1st quarterly dividends
Telecom firm aims for new investment entity to achieve net worth of 75 trillion won in 2025
By Kim Bo-eun
By Kim Bo-eun
SK Telecom (SKT) said Wednesday that it executed its first quarterly dividend payouts in the second quarter, on the back of competitive earnings and stable cash flows.
SKT, the country's top mobile carrier, said it will determine the total dividend payouts for the year within a range of 30 percent to 40 percent of its earnings before interest, taxes, depreciation and amortization (EBITDA), minus capital expenditures.
"This is the dividend policy of SKT, the existing entity, following its being split into two entities. The dividend payout policy of the new entity will be decided based on the board's discussions after its launch," SKT said in a statement.
A dividend of 2,500 won per ordinary share (ORDs) was paid to investors holding SKT stocks as of June 30, by Wednesday. The total amount of dividend payouts is 177.9 billion won.
This is the first time that SKT has paid quarterly dividends to shareholders. SKT paid a total of 10,000 won in dividends per ORDs on an annual basis, but this total has been divided into payouts over quarters throughout the year.
"We will continue our growth in new information and communication technology (ICT), as well as in the mobile communication sector, and continue to find growth engines in new sectors," SKT CFO Yoon Poong-young was cited as saying in a press release. "We will prepare thoroughly so that the spin-off serves as a starting point for both the existing and new entity to continue growth.”
The new entity, launching in October, will be a firm investing in semiconductors, platforms and innovative technologies. SKT aims for the net worth of the company to reach 75 trillion won by 2025. The firm's current net worth is 26 trillion won.
Meanwhile, SKT as the existing firm will continue to search for new growth engines in subscription services, the metaverse and enterprise sectors, based on its core businesses for 5G and home media.
Following a board decision about the spinoff reached in June, SKT is set to be split into (1) an existing entity that will focus on telecommunications, AI and digital infrastructure, and (2) a new investment firm specializing in the sectors of semiconductors and ICT. The new structure will be finalized at a shareholders' meeting on Oct. 12.
During the most recent quarter, SKT reported 4.82 trillion won in sales and an operating profit of 396.6 billion won, increases of 4.7 percent and 10.8 percent, respectively, year-on-year. It saw sales from new businesses in ICT grow by more than 10 percent year-on-year. The earnings of new businesses in ICT have continued to grow by two digits for five consecutive quarters, since the second quarter of last year.
The revenue created by new businesses in ICT now accounts for 31 percent to 32 percent of SKT's total revenue. New businesses include IPTV and OTT services in media, security, commerce and mobility.