UPDATE 3-SK Telecom Q2 profit up, Sprint bid talk resurfaces

(Adds forecasts, company comments on bid talk)

By Kim Soyoung and Rhee So-eui

SEOUL, July 26 (Reuters) - SK Telecom Co. (017670.KS: Quote, Profile, Research, Stock Buzz), South Korea's top mobile operator, said solid user growth helped it post a modest rise in quarterly profit, and denied a report it was considering a bid for U.S. wireless firm Sprint Nextel (S.N: Quote, Profile, Research, Stock Buzz).

A rise in marketing costs as the company chased more profitable users of "third-generation" mobile services like video calls and wireless Internet, weighed on the results and SK forecast its earnings before interest, tax, depreciation and amortisation (EBITDA) will fall from last year's level.

SK is fighting an aggressive marketing campaign by the country's second-biggest carrier, KTF Co. Ltd. (032390.KS: Quote, Profile, Research, Stock Buzz), over users for higher-margin services.

SK reported on Thursday a 8 percent rise in quarterly net profit to 403.3 billion won ($441.4 million) -- albeit slightly below a 417.2 billion won forecast from analysts -- as solid subscriber growth and healthy mobile Internet service revenue outstripped the higher marketing costs.

Shares in SK Telecom, with around a $19 billion market value, rose 0.7 percent to end at 217,000 won, beating a 2 percent drop in the wider market .

Earlier on Thursday, a report from online news provider EDaily revived talk that SK may invest in Sprint Nextel Corp.

EDaily quoted SK Vice Chairman Cho Jung-nam as saying the mobile operator was talking to investors that plan to pay the bulk of a takeover bid for the No. 3 U.S. wireless carrier and need someone to manage the phone company.