Sk Telecom Co., Ltd. · KRX:017670
Sk Telecom — Q3 2024 Earnings Presentation
20 slides from Sk Telecom's earnings presentation, Nov 6, 2024
Slide 1: Investor Briefing: Earnings for Q3, 2024
SK telecom Investor Briefing Earnings for Q3, 2024 2024. 11. 6.
Slide 2: Forward-looking statements disclaimer
This presentation contains forward-looking statements with respect to the financial condition, results of operations, and business of SK Telecom (the “Company”, or “SKT”) and its subsidiaries, and plans and objectives of the management of the Company. The forward-looking statements are influenced by
Slide 3: 3Q24 Financial Results
Slide 4: Consolidated results: continued YoY growth on B2B revenue growth
Continued YoY growth trend thanks to B2B revenue growth on top of stronger earnings fundamentals of fixed and mobile business through operational improvement (KRW bn) 3Q24 3Q23 YoY 2Q24 QoQ (KRW bn) Revenue 4,532 4,403 2.9% 4,422 2.5% - SKT 3,203 3,148 1.7% 3,192 0.4% - SKB 1,105 1,069 3.3% 1,093 1.
Slide 5: SKT results: double-digit operating income growth
Double-digit growth of operating income thanks to comprehensive operational improvement efforts (KRW bn) 3Q24 3Q23 YoY 2Q24 QoQ (KRW bn) Revenue 3,203 3,148 1.7% 3,192 0.4% - MNO 2,672 2,654 0.7% 2,673 △0.1% - Other 531 494 7.5% 518 2.5% Operating 2,746 2,741 0.2% 2,741 0.2% expense - Marketing 726
Slide 6: SKB results: steady performance on B2C subscriber growth
Steady business performance trend thanks to B2C subscriber growth focused on high-ARPU plans and stable growth of B2B business (KRW bn) 3Q24 3Q23 YoY 2Q24 QoQ (KRW bn) Revenue 1,105 1,069 3.3% 1,093 1.1% - Pay tv 483 479 0.8% 477 1.4% - Fixed line 283 268 5.4% 279 1.4% - B2B business 340 322 5.4% 33
Slide 7: Business Highlights
Slide 8: 2024 Corporate Value-up Plan: ROE, shareholder return, AI Vision 2030
2024 Corporate Value-up Plan presents targets for ROE and shareholder return ratio as key indicators and emphasizes a strong commitment to future growth by announcing a long-term vision in terms of 2030 total revenue target and AI portion Capital Efficiency Shareholder return Future growth ROE Share
Slide 9: AI Pyramid Strategy and AI data center investments
SKT continues to make AI related investments under the AI Pyramid Strategy and aims to become a Global AI Company through close cooperation with invested companies and GTAA Demand continues to exceed supply Leap from Cloud to AI stage Transform business models - 80% of DCs under construction are lea
Slide 10: AI agent subscriber growth and service improvements
The subscriber base is growing on the back of a complete overhaul in August and agent functions will be further improved to enhance customers’ AI experience - One-year free promotion (worth USD20 per month) of Perplexity Pro, an AI search engine, offered exclusively by SKT in Korea, received a posit
Slide 11: 5G subscriber net adds and marketing expense
QoQ growth in 5G sub net adds thanks to flagship handset launch Continued stabilization with a 3.1% decline YoY in marketing expense (million) (KRW bn) 73% 71% 70% 68% 65% Reaching 9.62mn with the new B tv All+ price plan 23% growth YoY thanks to family roaming and 50% cash-back promotion (1,000) fo
Slide 12: Subsidiary revenue: data centers, cloud and others
Revenue of KRW 427.5bn, up 8% YoY, driven by higher utilization of Revenue of KRW 303.9bn, up 3% YoY Data Centers and growth in Cloud business orders (KRW bn) (KRW bn) Revenue of KRW 60.9bn, up 14% YoY, with a sustained revenue growth Revenue growth by KRW 10.8bn to KRW 47bn, up 30% YoY trend thanks
Slide 13: Shareholder Return
Slide 14: DPS for Q3 2024 determined at KRW 830
DPS for Q3 2024 determined at KRW 830 2023 2024 Category 2022 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q Total Dividend (KRW bn) 723.8 181.3 181.3 179.6 223.3 765.6 176.7 176.7 176.7 DPS 1) (KRW) 3,320 830 830 830 1,050 3,540 830 830 830 Dividend yield 2) 6.8% 1.7% 1.7% 1.6% 2.1% 7.1% 1.6% 1.6% 1.4%
Slide 15: Appendix
Slide 16: Consolidated income statement and balance sheet
(KRW bn) 1Q23 2Q23 3Q23 4Q23 2023 1Q24 2Q24 3Q24 (KRW bn) 3-31-23 6-30-23 9-30-23 12-31-23 3-31-24 6-30-24 9-30-24 Operating revenue 4,372.2 4,306.4 4,402.6 4,527.3 17,608.5 4,474.6 4,422.4 4,532.1 Total assets 30,539.6 30,305.6 29,879.3 30,119.2 30,296.5 29,451.8 29,472.8 Current assets 7,011.5 6,7
Slide 17: SKT income statement and balance sheet
(KRW bn) 1Q23 2Q23 3Q23 4Q23 2023 1Q24 2Q24 3Q24 (KRW bn) 3-31-23 6-30-23 9-30-23 12-31-23 3-31-24 6-30-24 9-30-24 Operating revenue 3,117.3 3,119.2 3,148.4 3,204.3 12,589.2 3,188.7 3,191.5 3,203.2 Total assets 25,589.6 24,989.6 24,859.5 24,995.9 25,197.2 24,268.5 24,310.3 Mobile service revenue 2,6
Slide 18: SKB income statement and balance sheet
(KRW bn) 1Q23 2Q23 3Q23 4Q23 2023 1Q24 2Q24 3Q24 (KRW bn) 3-31-23 6-30-23 9-30-23 12-31-23 3-31-24 6-30-24 9-30-24 Operating revenue 1,061.5 1,068.3 1,069.2 1,080.1 4,279.1 1,091.7 1,093.4 1,104.9 Assets 6,448.2 6,657.9 6,317.3 6,447.9 6,596.2 6,555.6 6,542.3 Current assets 1,614.8 1,707.4 1,385.4 1
Slide 19: Subscriber and operating data
3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 YoY QoQ SKT (thousands) MNO Subscribers 1) 30,440 30,452 30,552 31,159 31,168 31,276 31,662 31,710 31,762 1.9% 0.2% Net adds 190 12 100 607 9 107 387 47 52 466.1% 10.0% Handset subs 23,402 23,278 23,275 23,205 23,095 22,977 22,882 22,850 22,807 △1.2% △0.2
Slide 20: SK Telecom 40th Anniversary
SK telecom SK Telecom 40th Anniversary