SK Telecom (SKT), South Korea’s largest wireless operator, reported a 25 per cent jump in 2005 profits to $1.88 billion, driven by higher sales of wireless data services and lower marketing costs. Subsequently, SKT announced plans to increase shareholder returns over the next two years. The company will raise the dividend pay-out ratio to 40 per cent of its net income in 2006, from 35 per cent last year, and buy back shares worth Won 200 billion ($205 million). Wireless internet services were the main driver of SKT’s revenue growth, accounting for 26.6 per cent of the total sales. For 2006, SKT plans to keep marketing costs within 17.5 per cent of revenue, compared with 17.2 per cent in 2005.
