SK Telecom (SKT), South Korea’s largest wireless operator, has reported a 25 per cent jump in its 2005 profit to $1.88 billion over the previous year, driven by higher sales of wireless data services and lower marketing costs. Subsequently, SKT has announced plans to increase shareholder returns over the next two years. It 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 Won200 billion ($205 million). Wireless internet services were the main driver of SKT’s revenue growth, accounting for 26.6 per cent of total sales. Meanwhile KTF, another Korean operator reported a 92.7 per cent year-on-year increase in net profits for 2005, reaching Won547 billion ($561 million), compared to Won283 billion in 2004. Service revenues for the year increased 9.1 per cent year-on-year to reach Won5 trillion in 2005, compared to Won4.6 trillion in 2004.
