Slide 1: Investor Briefing: Earnings for Q3, 2023
Investor Briefing Earnings for Q3, 2023 2023. 11. 8.
Slide 2: Disclaimer
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 i
Slide 3: Agenda
3Q23 Financial Results Business Highlights Road to Global AI Company Shareholder Return Appendix
Slide 4: 3Q23 Financial Results Consolidated
3Q23 Financial Results Consolidated Continued YoY growth thanks to SKT’s MNO revenue and SKB’s B2B revenue growth Consolidated Income Statement Key Metrics (KRW bn) 3Q23 3Q22 YoY 2Q23 QoQ OP & margin (KRW bn) Revenue 4,403 4,343 1.4% 4,306 2.2% - SKT 3,148 3,123 0.8% 3,119 0.9% 495 498 - SKB 1,069 1
Slide 5: 3Q23 Financial Results Non-consolidated
3Q23 Financial Results Non-consolidated Stable profitability backed by solid revenue and a downward trend of major expenses Non-consolidated Income Statement Key Metrics (KRW bn) 3Q23 3Q22 YoY 2Q23 QoQ OP & margin (KRW bn) Revenue 3,148 3,123 0.8% 3,119 0.9% - MNO 2,654 2,625 1.1% 2,618 1.4% - Other
Slide 6: 3Q23 Financial Results SK Broadband
3Q23 Financial Results SK Broadband Top-line and bottom-line growth YoY driven by the growth in subscribers with higher ARPU for B2C business on top of continued growth of B2B business centered on Data Centers Consolidated Income Statement Key Metrics (KRW bn) 3Q23 3Q22 YoY 2Q23 QoQ OP & margin (KRW
Slide 7: Agenda: Business Highlights
3Q23 Financial Results Business Highlights Road to Global AI Company Shareholder Return Appendix
Slide 8: Business Highlights Fixed & Mobile
Business Highlights Fixed & Mobile 5G subscribers and portion Marketing expense (million) (KRW bn) Slower but continued subscriber growth as 5G market matures YoY and QoQ decline to maintain a stable trend 14.7 15.1 798 14.1 13.4 12.5 762 757 754 749 66% 63% 61% 58% 53% 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22
Slide 9: Business Highlights Media
Business Highlights Media Media revenue (KRW bn) PPM1) subscribers (1,000) 403 1,424 395 1,411 ) 1,411 393 390 387 1,370 1,368 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 1) Pay Per Month Media revenue of KRW 390.2bn, down 1.4% YoY SK Stoa revenue (KRW bn) • Up 1% QoQ thanks to PPC revenue rec
Slide 10: Business Highlights Enterprise
Business Highlights Enterprise Enterprise revenue (KRW bn) Data Center revenue (KRW bn) 407 401 53 392 49 386 380 46 42 40 ) 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 Enterprise revenue of KRW 400.6bn, up 5.8% YoY Cloud revenue* (KRW bn) • Continued scale-up on the back of Data Center capaci
Slide 11: Business Highlights AIVERSE
Business Highlights AIVERSE Subscription GMV Subscription subscribers (T universe) (KRW bn) (million) ※ Recalculated due to changes in GMV basis and addition of businesses 337 2.2 + 323 2.0 311 1.8 281 1.6 266 1.4 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 ifland MAU ifland cumulative downloa
Slide 12: Official launch of A. service
Business Highlights Official launch of A. service Official launch of A.(A dot) to utilize communication AI for innovation and gain leadership in the AI service market by evolving into a personal AI assistant that offers AI services in customers’ daily lives History Killer services 1 AI Communication
Slide 13: ifland economic system
Business Highlights ifland economic system Introduce virtual currency that can be purchased via in-app transactions to promote creation and consumption of quality content and accelerate user acquisition Overview of the ifland economic system How the economic system works 1 Content marketplace Acquir
Slide 14: Agenda: Road to Global AI Company
3Q23 Financial Results Business Highlights Road to Global AI Company Shareholder return Appendix
Slide 15: Road to Global AI Company: AI Pyramid
Road to Global AI Company AI Pyramid Aim to become a global AI company through the AI Pyramid strategy in three key areas including AI infrastructure, AIX (AI transformation), and AI service Become a Global AI Company Global pursuit in parallel AI service Global telco AI alliance Break new ground PA
Slide 16: AI Infrastructure
Road to Global AI Company AI Infrastructure Plan to secure and advance infrastructure capabilities that support an AI Company, including AI Data Centers, AI Semiconductors, and Multi-LLMs AI Data Center AI Semiconductor Multi-LLM Clean energy solutions and DC Use AI chips by Sapeon, our subsidiary D
Slide 17: AIX
Road to Global AI Company AIX Internal AIX aims to use AI to innovate customer experience and boost productivity in mobile, broadband and enterprise business while External AIX aims to use AI technology to expand into related areas including mobility and healthcare Internal AIX (T/B/E) External AIX
Slide 18: AI Service
Road to Global AI Company AI Service Boost customer engagement with a world-class personal AI assistant and secure economies of scale and global coverage through an alliance with global telcos Internal capability (A.) Cooperation (Global Personal AI Assistant) Korea’s first conversational AI assista
Slide 19: Agenda: Shareholder Return
3Q23 Financial Results Business Highlights Road to Global AI Company Shareholder Return Appendix
Slide 20: Shareholder Return
Shareholder Return Q3 DPS determined at KRW 830 and approximately 49% of the treasury shares, with a total value of KRW 300bn, have been purchased according to the previously announced plan as of the trading day on October 30, 2023 Share buy-back and cancellation plan Progress in share buy-back Shar
Slide 21: Agenda: Appendix
3Q23 Financial Results Business Highlights Road to Global AI Company Shareholder Return Appendix
Slide 22: Financial Statements – Consolidated
Appendix Financial Statements – Consolidated Consolidated Income Statement Consolidated Balance Sheet (KRW bn) 1Q22 2Q22 3Q22 4Q22 ’22년 1Q23 2Q23 3Q23 (KRW bn) 3-31-22 6-30-22 9-30-22 12-31-22 3-31-23 6-30-23 9-30-23 17,305. Operating revenue 4,277.2 4,289.9 4,343.4 4,394.5 4,372.2 4,306.4 4,402.6 T
Slide 23: Financial Statements - Non-consolidated
Appendix Financial Statements - Non-consolidated Non-consolidated Income Statement Non-consolidated Balance Sheet (KRW bn) 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 3Q23 (KRW bn) 3-31-22 6-30-22 9-30-22 12-31-22 3-31-23 6-30-23 9-30-23 Operating revenue 3,077.4 3,118.2 3,122.6 3,096.3 12,414.6 3,117.3 3,11
Slide 24: Financial Statements - SKB
Appendix Financial Statements - SKB Consolidated Income Statement Consolidated Balance Sheet (KRW bn) 1Q22 2Q22 3Q22 4Q22 ’22년 1Q23 2Q23 3Q23 (KRW bn) 3-31-22 6-30-22 9-30-22 12-31-22 3-31-23 6-30-23 9-30-23 Operating revenue 1,026.0 1,032.8 1,044.2 1,053.3 4,156.3 1,061.5 1,068.3 1,069.2 Assets 5,9
Slide 25: Operating Data
Appendix Operating Data Subscribers (Thousands) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 YoY QoQ SKT MNO Subscribers 1) 29,422 29,696 29,832 30,250 30,440 30,452 30,552 31,159 31,168 2.4% 0.0% Net adds 39 274 136 418 190 12 100 607 9 △95.2% △98.5% Activations 788 1,057 837 1,076 914 660 757 1,29
Slide 26: SK telecom
SK telecom