Korean Telecom Giants’ Quarterly Profits Seen Rebounding 84%
SK Telecom, KT and LG Uplus are projected to earn a combined 1.37 trillion won in third-quarter operating profit as exceptional costs from last year recede.
South Korea’s three largest telecommunications operators are expected to post a sharp recovery in third-quarter earnings, largely because costly one-time items that weighed on last year’s results are no longer being repeated.
SK Telecom, KT and LG Uplus are forecast to generate combined operating profit of 1.37 trillion won, or about $1.04 billion, according to estimates compiled by financial data provider FnGuide. That would represent an 83.56 percent increase from the same period a year earlier. Their combined revenue is projected to rise 1.54 percent to approximately 15.35 trillion won.
The expected profit total would also exceed the 1.24 trillion won recorded in the third quarter of 2024 by 10.47 percent. The comparison indicates that the sector’s earnings may move above levels seen before the unusual expenses that distorted last year’s performance.
SK Telecom is projected to record the largest rebound. Its operating profit is estimated at 523.9 billion won, up 981.5 percent year on year, while revenue is forecast to increase 11.87 percent to roughly 4.45 trillion won. The company earned only 48.4 billion won in operating profit in the corresponding quarter last year after a SIM-card data breach triggered replacement and customer-compensation costs.
The new estimate puts SK Telecom close to its third-quarter 2024 operating profit of 533.3 billion won. A recovery in the company’s core mobile operation is expected to support the result, while SK Broadband could add momentum through stronger data-center utilization and new enterprise customers.
KT is expected to remain the largest operating-profit contributor among the three, with 549.6 billion won, a 2.13 percent annual increase. Its revenue, however, is forecast to fall 2.24 percent to around 6.97 trillion won. Weak handset sales, slower service-revenue growth and operating expenses are expected to constrain performance despite modest gains in wireless, internet and enterprise services. KT Cloud and KT Estate may provide additional longer-term support.
LG Uplus is projected to report operating profit of 300.1 billion won, up 85.64 percent from 161.7 billion won a year earlier. Last year’s figure was depressed by costs associated with a voluntary retirement program. This quarter’s improvement is expected to reflect the absence of those charges, tighter control of labor and other expenses, and a greater focus on higher-margin operations. Efficiency initiatives tied to artificial intelligence transformation are also expected to contribute.
The forecasts show that much of the headline growth comes from easier comparisons after exceptional costs. Even so, the projected combined profit above the 2024 level suggests that improving core operations and cost discipline are also playing a role in the sector’s recovery.