SK Telecom Q2 profit flat amid renewed competition

SEOUL, July 28 - SK Telecom <017670.KS>, South Korea's top mobile carrier, on Tuesday reported a nearly flat quarterly operating profit as intensified competition to win users for bundled services offset higher revenue from more subscribers.

SK, which controls about half of the country's mobile market, posted a 553.4 billion won ($445.4 million) operating profit for April-June, slightly above a forecast for a 525.4 billion won profit by earnings tracker IBES.

That was up 4 percent from a 533 billion won operating profit reported a year earlier and compares with a 564 billion won profit in January-March.

Second-quarter net profit was 311.6 billion won, just under a 329.9 billion won profit forecast.

The market saw margin-crushing competition flare up in the second quarter as a merger in June between KT Corp <030200.KS> and its mobile unit KTF, the country's No. 2 carrier, triggered fresh rivalry.

The marketing battle is expected to ease in the second half.

SK Telecom shares have fallen about 14 percent this year, lagging a gain of about 36 percent in the wider market <.KS11>.