Seoul: SK Telecom Co., South Korea's largest mobile carrier, is projected to maintain stable second-quarter earnings despite a data breach incident that compromised the personal information of over 22 million users, various brokerage firms reported on Friday.
According to Yonhap News Agency, the breach, which occurred in April, involved the potential leakage of sensitive universal subscriber identity module (USIM) data during an unspecified cyberattack on SK Telecom's servers. Despite this, the company is expected to post an operating profit of 515.3 billion won (US$378 million) for the April-June period, marking a slight decrease of 4.1 percent from 537.5 billion won a year earlier, as indicated by market tracker FnGuide Inc.
Analysts noted that while approximately 620,000 subscribers discontinued their wireless service as of June 23, the earnings impact was likely minimal due to SK Telecom's extensive customer base. Additionally, reduced marketing costs during the temporary suspension of new subscriptions contributed to maintaining the operating profit above 500 billion won in the second quarter.
SK Telecom resumed new subscriptions on June 24, following a two-month suspension imposed by the government in response to the data breach. To mitigate potential identity theft and financial fraud, the company has been providing free USIM card replacements to all subscribers since April.
However, brokerages cautioned that SK Telecom's earnings might face challenges in the third quarter, contingent on the extent of compensation and penalties imposed by the government.