Major telecoms to see split earnings in Q1 as cyberattack fallout lingers

The nation's three major telecom operators — SK Telecom, KT and LG Uplus — are expected to post diverging earnings for this year’s first quarter, as the financial fallout from last year’s high-profile security breaches continues to weigh on the industry. While SK Telecom and KT are bracing for weaker profitability, LG Uplus is expected to extend its earnings growth supported by subscriber gains and a relatively limited direct impact. According to consensus forecasts compiled by market researcher FnGuide, the three carriers' combined operating profit is projected at 1.35 trillion won ($896.5 million) for the first quarter, down 10.8 percent from a year earlier. The decline reflects mounting costs for customer compensation, security upgrades and heavier marketing outlays after a series of cybersecurity incidents at SK Telecom in April and KT in August. SK Telecom is expected to post the steepest decline among the three, as the full impact of last year’s massive universal subscriber identity module (USIM) data breach continues to show up in its results. The company’s operating pr

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