SK Telecom Co., Ltd. · KRX:017670

SK Telecom — Q3 2013 Earnings Presentation

15 slides from SK Telecom's earnings presentation, Oct 29, 2013

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

    Results for the Quarter Ended September 30, 2013 K-IFRS , Unaudited October 29th, 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) 3Q13 3Q12 YoY 2Q13 QoQ  Operating revenues: SK Telecom (“SKT” or the Operating revenue 4,125 4,084 40 1.0% 4,117 8 0.2% “Company”) recorded 1.0% YoY and 0.2% QoQ increase Operating expenses 3,573 3,792 (219) -5.8% 3,572 2 0.0%

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

    Financial Results  Operating Expenses (Consolidated) (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ  Labor costs: Increased 19.0% YoY as a result of the SK Labor cost 363 305 58 19.0% 359 4 1.1% M&C‟s merger with SK Planet Commissions paid 1,350 1,573 (223) -14.2% 1,360 (11) -0.8% Advertising 92 89 2 2.4% 109 (1

  6. Slide 6: Financial Results: SK Telecom's Operating Revenues (Non-consolidated)

    Financial Results  SK Telecom’s Operating Revenues (Non-consolidated) (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ  3Q13 total operating revenues increased 4.0% YoY and Total operating revenue 3,223 3,097 125 4.0% 3,209 14 0.4% 0.4% QoQ, led by ARPU growth and increased new Mobile service revenue 2,768 2,689 7

  7. Slide 7: Financial Results: Balance Sheet (Consolidated)

    Financial Results  Balance Sheet (Consolidated) (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ Assets Total assets 25,933 26,058 (125) -0.5% 25,436 497 2.0% Current assets 5,382 5,443 (62) -1.1% 5,231 151 2.9%  Current assets: Decreased 1.1% YoY due to the decrease in Cash & marketable securities 1,937 1,688 249

  8. Slide 8: Operating Results: ARPU

    Operating Results (Non-consolidated)  ARPU ARPU1) (KRW) 3Q13 3Q12 YoY 2Q13 QoQ  3Q13 billing ARPU increased 5.4% YoY and 2.6% QoQ, Total ARPU 42,780 40,265 2,515 6.2% 41,892 888 2.1% Billing ARPU2) 34,909 33,135 1,773 5.4% 34,012 897 2.6% led by the growth of LTE subscribers 1) Includes SK Planet'

  9. Slide 9: Operating Results: Subscriber Numbers

    Operating Results (Non-consolidated)  Subscriber Numbers 3Q13 3Q12 YoY 2Q13 QoQ  The churn rate recorded 2.25% in 3Q13 as a result of Subscribers ('000) 27,211 26,778 433 1.6% 27,140 71 0.3% Net adds 71 119 (48) -40.4% 110 (39) -35.6% the Company‟s effort to lessen market competition and Activatio

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

    Operating Results (Non-consolidated)  Marketing Expenses & Capex (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ  Marketing expenses is trending down as the Company‟s Marketing expenses 1) 827 1,035 (208) -20.1% 853 (26) -3.0% focus on retention reduces market competition % of revenues 25.7% 33.4% -7.8%p 26.6% -0

  11. Slide 11: Appendix: Consolidated Income Statement

    Appendix  Consolidated Income Statement (KRW bn) 1Q12 2Q12 3Q12 4Q12 FY12 1Q13 2Q13 3Q13 FY13 YTD Operating revenue 3,932.9 3,968.4 4,084.4 4,155.7 16,141.4 4,065.7 4,117.0 4,124.6 12,307.2 Operating expenses 3,441.7 3,561.2 3,791.7 3,616.7 14,411.4 3,661.1 3,571.5 3,573.2 10,805.8 Labor cost 351.6

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

    Appendix  SK Telecom Non-consolidated Income Statement (KRW bn) 1Q12 2Q12 3Q12 4Q12 FY12 1Q13 2Q13 3Q13 FY13 YTD Operating revenue 3,007.4 3,068.6 3,097.5 3,159.2 12,332.7 3,112.1 3,209.1 3,222.9 9,544.1 Operating expenses 2,524.8 2,675.3 2,847.9 2,609.3 10,657.3 2,692.0 2,676.8 2,685.7 8,054.5 Lab

  13. Slide 13: Appendix: Consolidated Balance Sheet

    Appendix  Consolidated Balance Sheet (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Total assets 26,546.9 25,773.4 26,058.5 25,595.6 25,408.8 25,436.4 25,933.5 Current assets 5,555.7 4,754.4 5,443.2 5,294.4 5,081.7 5,230.7 5,381.6 1) 2,456.9 1,698.6 1,687.6 1,444.5 1,493.0 1,693.5 1,937.0 Cash and mar

  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 3Q13 Total assets 23,106.7 22,271.9 22,526.5 22,249.5 22,391.5 22,147.4 22,416.2 Current assets 3,615.3 2,590.2 3,187.6 2,589.7 2,765.8 2,809.9 2,956.8 Cash and marketable securities 1) 1,488.7 546.4 544.0 4

  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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