SK Telecom Co., Ltd. · KRX:017670

SK Telecom — Q2 2014 Earnings Presentation

14 slides from SK Telecom's earnings presentation, Aug 1, 2014

  1. Slide 1: Results for the Quarter Ended June 30, 2014

    Results for the Quarter Ended June 30, 2014 K-IFRS, Non-audited August 1st, 2014 0

  2. Slide 2: Disclaimer

    Disclaimer This material contains forward-looking statements with respect to the financial condition, results of operations and business of SK Telecom and its subsidiaries (the “Company”) and plans and objectives of the management of the Company. Statements that are not historical facts, including s

  3. Slide 3: Table of Contents

    Table of Contents Financial Results 3 Operating Results (Non-consolidated) 6 Appendix 9 2

  4. Slide 4: Financial Results: Summary of Income Statement (Consolidated)

    Financial Results  Summary of Income Statement (Consolidated) (KRW bn) 2Q14 2Q13 YoY 2Q14 1Q14 QoQ  SK Telecom (“SKT” or the “Company”) operating revenue Operating revenue 4,305 4,117 188 4.6% 4,305 4,202 103 2.5% increased 4.6% YoY and 2.5% QoQ led by the growth of Operating expenses 3,759 3,572

  5. Slide 5: Financial Results: Operating Expenses (Consolidated)

    Financial Results  Operating Expenses (Consolidated) (KRW bn) 2Q14 2Q13 YoY 2Q14 1Q14 QoQ  Labor cost increased 11.7% YoY due to the increase in Labor cost 401 359 42 11.7% 401 429 (28) -6.5% the number of employees. The base effect of New Year Commissions paid 1,364 1,360 4 0.3% 1,364 1,628 (263)

  6. Slide 6: Financial Results: Operating Revenues (Non-consolidated)

    Financial Results  Operating Revenues (Non-consolidated) Total operating revenue increased 1.7% YoY led by the (KRW bn) 2Q14 2Q13 YoY 2Q14 1Q14 QoQ  Total operating revenue 3,265 3,209 56 1.7% 3,265 3,264 1 0.0% growth of the LTE service and increased new business- Mobile service revenue 2,794 2,7

  7. Slide 7: Operating Results: ARPU

    Operating Results (Non-consolidated)  ARPU ARPU1) (KRW) 2Q14 2Q13 YoY 2Q14 1Q14 QoQ  Billing ARPU showed steady growth, increasing 5.9% YoY Total ARPU 44,217 41,892 2,325 5.5% 44,217 43,737 479 1.1% Billing ARPU2) 36,013 34,012 2,001 5.9% 36,013 35,309 704 2.0% led by the growth of the LTE service

  8. Slide 8: Operating Results: Subscriber Numbers

    Operating Results (Non-consolidated)  Subscriber Numbers YoY QoQ The number of LTE subscribers reached 15.4 mn in 2Q14. 2Q14 2Q13 2Q14 1Q14  Subscribers ('000) 27,889 27,140 750 2.8% 27,889 27,814 76 0.3% Net adds 76 110 (34) -31.3% 76 461 (386) -83.6% Over 55% of SKT’s subscribers are currently o

  9. Slide 9: Operating Results: Marketing Expenses & Capex

    Operating Results (Non-consolidated)  Marketing Expenses & Capex Marketing expenses decreased 3.3% YoY and 25.1% (KRW bn) 2Q14 2Q13 YoY 2Q14 1Q14 QoQ  Marketing expenses1) 825 853 (28) -3.3% 825 1,100 (276) -25.1% % of operating revenue 25.3% 26.6% -1.3%p 25.3% 33.7% -8.5%p QoQ due to the business

  10. Slide 10: Appendix: Consolidated Income Statement

    Appendix  Consolidated Income Statement (KRW bn) 1Q13 2Q13 3Q13 4Q13 FY13 1Q14 2Q14 Operating revenue 4,065.7 4,117.0 4,124.6 4,294.8 16,602.1 4,201.9 4,305.4 Operating expenses 3,661.1 3,571.5 3,573.2 3,785.1 14,590.9 3,949.5 3,759.3 Labor cost 444.0 359.2 363.2 395.0 1,561.4 429.1 401.1 Commissio

  11. Slide 11: Appendix: Non-consolidated Income Statement

    Appendix  SK Telecom Non-consolidated Income Statement (KRW bn) 1Q13 2Q13 3Q13 4Q13 FY13 1Q14 2Q14 Operating revenue 3,112.1 3,209.1 3,222.9 3,316.3 12,860.4 3,263.7 3,264.6 Operating expenses 2,692.0 2,676.8 2,685.7 2,836.2 10,890.7 3,012.4 2,736.9 Labor cost 205.3 135.7 134.3 149.1 624.3 171.2 15

  12. Slide 12: Appendix: Consolidated Balance Sheet

    Appendix  Consolidated Balance Sheet (KRW bn) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Total assets 25,408.8 25,436.4 25,933.5 26,576.5 26,067.2 27,027.6 Current assets 5,081.7 5,230.7 5,381.6 5,123.4 4,781.8 5,592.6 1) 1,493.0 1,693.5 1,937.0 1,765.1 1,384.1 1,652.0 Cash and marketable securities Accounts re

  13. Slide 13: Appendix: Non-consolidated Balance Sheet

    Appendix  SK Telecom Non-consolidated Balance Sheet (KRW bn ) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Total assets 22,391.5 22,147.4 22,416.2 22,827.4 22,256.0 22,494.0 Current assets 2,765.8 2,809.9 2,956.8 2,817.8 2,563.8 2,755.0 1) 631.3 659.3 754.5 669.5 489.7 568.2 Cash and marketable securities Account

  14. Slide 14: IR Contacts

    IR Contacts Dong Seop Kim (82-2-6100-1464, sunson@sk.com) Hun Lee (82-2-6100-1334, hun.lee@sk.com) Woo Sun Cho (82-2-6100-1638, woosun.cho@sk.com) Jung Hyun Kim (82-2-6100-1582, jane.kim@sk.com) 13

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