SK Telecom Narrows Noncore Losses but Reaffirms Intention to Invest in Noncore Businesses
The trends evident in 2016 remained so in SK Telecom’s first quarter. The company’s core narrow-moat telecom business continues to produce solid results despite sluggish revenue. However, the noncore Internet businesses continue to report losses, and ongoing investment in these no-moat businesses remains a concern. We detect a focus on revenue and market share growth from new CEO Park Jung-ho, which may lead to increased competitive intensity in the telecom industry. Operating profit in the core...
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