UPDATE: Credit Suisse Downgrades SK Telecom to Neutral on Weak Q3
Credit Suisse lowered its rating on SK Telecom (NYSE: SKM) from Outperform to Neutral.
Credit Suisse noted, "Following 3Q12 results announcement, we are making downward adjustments to SKT on the back of (1) higher marketing costs and (2) a slower pick-up in ARPU. Although higher marketing costs for 3Q12 were widely expected, we are concerned about the relatively slow pick-up in ARPU despite strong LTE subscriber growth. Compared to LGU where ARPU picked up 4.4% QoQ and 17.9% YoY to W30,565 with 21.2% of total subscribers on LTE services, SKT's ARPU picked was up only 0.4% QoQ and down 1.8% YoY to W32,599 with 35.6% of total subscribers on LTE service."
SK Telecom closed at $15.68 on Monday.
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