SK Telecom Co., Ltd. · KRX:017670

SK Telecom — Q2 2013 Earnings Presentation

15 slides from SK Telecom's earnings presentation, Jul 30, 2013

  1. Slide 1: Results for the Quarter Ended June 30, 2013

    Results for the Quarter Ended June 30, 2013 K-IFRS , Non-audited July 30th, 2013 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) 7 Appendix 10 IR Contacts 14 2

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

    Financial Results  Summary of Income Statement (Consolidated) (KRW bn) 2Q13 2Q12 YoY 1Q13 QoQ  Operating revenues: SK Telecom (“SKT” or the Operating revenue 4,164 4,008 156 3.9% 4,113 52 1.3% “Company”) recorded 3.9% YoY and 1.3% QoQ increases Operating expenses 3,611 3,592 18 0.5% 3,702 (91) -2.

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

    Financial Results  Operating Expenses (Consolidated) (KRW bn) 2Q13 2Q12 YoY 1Q13 QoQ  Labor costs: Increased 24.2% YoY as a result of the SK Labor cost 364 293 71 24.2% 449 (85) -18.9% M&C‟s merger with SK Planet. The 18.9% QoQ decrease Commissions paid 1,386 1,548 (162) -10.5% 1,451 (65) -4.4% re

  6. Slide 6: Financial Results: Balance Sheet (Consolidated)

    Financial Results  Balance Sheet (Consolidated) Assets (KRW bn) 2Q13 2Q12 YoY 1Q13 QoQ Total assets 25,436 25,773 (337) -1.3% 25,409 28 0.1% Current assets 5,231 4,754 476 10.0% 5,082 149 2.9%  Current assets: Increased 10.0% YoY as cash and Cash & marketable securities 1,693 1,699 (5) -0.3% 1,493

  7. Slide 7: SK Telecom's Operating Revenues (Non-consolidated)

    Financial Results  SK Telecom’s Operating Revenues (Non-consolidated) 2Q13 total operating revenues increased 4.6% YoY and (KRW bn) 2Q13 2Q12 YoY 1Q13 QoQ  Total operating revenue 3,209 3,069 140 4.6% 3,112 97 3.1% 3.1% QoQ, led by the increased mobile service revenues Mobile service revenue 2,787

  8. Slide 8: Operating Results: ARPU

    Operating Results (Non-consolidated)  ARPU ARPU1) (KRW) 2Q13 billing ARPU increased 3.3% YoY and 1.0% QoQ, 2Q13 2Q12 YoY 1Q13 QoQ  Total ARPU 41,892 39,938 1,955 4.9% 40,450 1,443 3.6% Billing ARPU2) 34,012 32,923 1,089 3.3% 33,668 344 1.0% as the growth of LTE subscribers outpaced the 1) Includes

  9. Slide 9: Operating Results: Subscriber Numbers

    Operating Results (Non-consolidated)  Subscriber Numbers The churn rate dropped to 2.27% in 2Q13 as a result of 2Q13 2Q12 YoY 1Q13 QoQ  Subscribers ('000) 27,140 26,659 481 1.8% 27,030 110 0.4% Net adds 110 103 7 7.1% 68 42 60.8% the Company‟s focus on retention-oriented marketing. Activations 1,9

  10. Slide 10: Operating Results: Marketing Expenses & Capex

    Operating Results (Non-consolidated)  Marketing Expenses & Capex Marketing expenses fell 11.2% YoY and 5.9% QoQ due (KRW bn) 2Q13 2Q12 YoY 1Q13 QoQ  Marketing expenses1) 853 960 (108) -11.2% 907 (54) -5.9% % of revenues 26.6% 31.3% -4.7%p 29.1% -2.6%p to decreased acquisition costs resulted from t

  11. Slide 11: Appendix: Consolidated Income Statement

    Appendix  Consolidated Income Statement (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Operating revenue 3,969.7 4,007.9 4,125.5 4,197.4 4,112.6 4,164.2 Operating expenses 3,470.4 3,592.3 3,824.8 3,652.8 3,702.0 3,610.8 Labor cost 355.5 292.9 309.4 325.5 448.6 363.9 Commissions paid 1,414.5 1,548.2 1,592.9

  12. Slide 12: Appendix: SK Telecom Non-consolidated Income Statement

    Appendix  SK Telecom Non-consolidated Income Statement (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Operating revenue 3,007.4 3,068.6 3,097.5 3,159.2 3,112.1 3,209.1 Operating expenses 2,524.8 2,675.3 2,847.9 2,609.3 2,692.0 2,676.8 Labor cost 174.8 123.6 118.6 115.0 205.3 135.7 Commissions paid 1,266.3

  13. Slide 13: Appendix: Consolidated Balance Sheet

    Appendix  Consolidated Balance Sheet (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Total assets 26,546.9 25,773.4 26,058.5 25,595.6 25,408.8 25,436.4 Current assets 5,555.7 4,754.4 5,443.2 5,294.4 5,081.7 5,230.7 Cash and marketable securities1) 2,456.9 1,698.6 1,687.6 1,444.5 1,493.0 1,693.5 Accounts rec

  14. Slide 14: Appendix: SK Telecom Non-consolidated Balance Sheet

    Appendix  SK Telecom Non-consolidated Balance Sheet (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Total assets 23,106.7 22,271.9 22,526.5 22,249.5 22,391.5 22,147.4 Current assets 3,615.3 2,590.2 3,187.6 2,589.7 2,765.8 2,809.9 Cash and marketable securities1) 1,488.7 546.4 544.0 445.9 631.3 659.3 Account

  15. Slide 15: IR Contacts

    IR Contacts Dong Seop Kim (82-2-6100-1464, sunson@sk.com) Seung Oh Yoon (82-2-6100-1632, monsta@sk.com) Jae Bum Park (82-2-6100-1660, jb.park@sk.com) Won Tuh Chung (82-2-6100-1550, wt.chung@sk.com) Woo Sun Cho (82-2-6100-1638, woosun.cho@sk.com) Jung Hyun Kim (82-2-6100-1582, jane.kim@sk.com) 14

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