SK Telecom Co., Ltd. · KRX:017670

SK Telecom — FY2012 Earnings Presentation

14 slides from SK Telecom's earnings presentation, Feb 5, 2013

  1. Slide 1: Results for the Year Ended December 31, 2012

    Results for the Year Ended December 31, 2012 K-IFRS , Non-audited February 5th, 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 2

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

    Financial Results  Summary of Income Statement (Consolidated) (KRW bn) 2012 2011 YoY Q4 '12 Q3 '12 QoQ  SK Telecom (“SKT” or the “Company”) recorded a 2.3% Operating revenue 16,300 15,926 374 4,197 4,126 72 YoY increase FY12 Operating revenues as the continued Operating expenses 14,540 13,631 909

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

    Financial Highlights Operating Expenses (Consolidated) (KRW bn) 2012 2011 YoY Q4 '12 Q3 '12 QoQ  Labor costs: The 9.4% YoY increase was due to increased Labor cost 1,283 1,173 110 325 309 16 labor costs at subsidiary companies. Commissions paid 6,025 5,611 414 1,470 1,593 (123)  Commissions paid:

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

    Financial Results  Balance Sheet (Consolidated) Assets (KRW bn) 2012 2011 YoY Q4 '12 Q3 '12 QoQ Total assets 25,596 24,366 1,230 25,596 26,058 (462)  Current assets: Reduction in handset installment Current assets 5,294 6,117 (823) 5,294 5,443 (148) receivables and decreased Cash & marketable secu

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

    Financial Results  SK Telecom’s Operating Revenues (Non-consolidated) (KRW bn) 2012 2011 YoY Q4 '12 Q3 '12 QoQ  FY12 Total operating revenues decreased by 1.7% YoY Mobile service revenue 10,759 10,754 4 2,782 2,689 93 due to; Interconnection revenue 936 1,149 (213) 166 252 (85) 1) - the 18.5% YoY

  8. Slide 8: Operating Results (Non-consolidated): ARPU

    Operating Results (Non-consolidated)  ARPU 1)  SKT was able to restore its ARPU to pre-2011 tariff cut ARPU (KRW) 2012 2011 YoY Q4 '12 Q3 '12 QoQ 2) levels, largely due to the growth of the higher ARPU Total ARPU 40,128 40,338 (210) 41,171 40,265 906 3) LTE subscriber base. Billing ARPU 33,016 33,

  9. Slide 9: Operating Results (Non-consolidated): Subscriber Numbers

    Operating Results (Non-consolidated)  Subscriber Numbers 2012 2011 YoY Q4 '12 Q3 '12 QoQ Subscribers ('000) 26,961 26,553 408 26,961 26,778 183  SKT finished 2012 with 7.53m LTE subscribers, Net adds 409 848 (439) 183 119 64 surpassing its original target and solidifying its Activations 8,644 9,46

  10. Slide 10: Marketing Expenses & Capex

    Operating Results (Non-consolidated)  Marketing Expenses & Capex (KRW bn) 2012 2011 YoY Q4 '12 Q3 '12 QoQ  Marketing expenses rose 7.4% YoY as LTE market Marketing expenses 1) 3,474 3,236 239 754 1,035 (281) competition intensified during FY12. But recorded a % of revenue 28.2% 25.8% 2.4%p 23.9% 3

  11. Slide 11: Appendix: Consolidated Income Statement

    Appendix  Consolidated Income Statement (KRW bn) Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Operating revenue 3,897.0 4,025.8 4,045.4 3,958.3 3,969.7 4,007.9 4,125.5 4,197.4 Operating expenses 3,248.1 3,335.7 3,484.6 3,562.4 3,470.4 3,592.3 3,824.8 3,652.8 Labor cost 313.6 253.4 292.6

  12. Slide 12: Appendix: Consolidated Balance Sheet

    Appendix  Consolidated Balance Sheet (KRW bn) Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Total assets 22,937.2 22,612.3 23,145.8 24,366.0 26,550.4 25,773.4 26,057.9 25,595.6 Current assets 6,978.3 6,098.2 6,791.5 6,117.5 5,559.2 4,754.4 5,442.5 5,294.4 1) Cash and marketable securities

  13. Slide 13: Appendix: Non-consolidated Income Statement

    Appendix  SK Telecom Non-consolidated Income Statement (KRW bn) Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Operating revenue 3,130.0 3,189.6 3,202.3 3,029.4 3,007.4 3,068.6 3,097.5 3,159.2 Operating expenses 2,511.2 2,540.3 2,678.0 2,637.2 2,524.8 2,675.3 2,847.9 2,609.3 Labor cost 182

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

    Appendix  SK Telecom Non-consolidated Balance Sheet (KRW bn) Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Total assets 19,567.3 19,030.3 19,400.1 20,520.5 23,106.7 22,271.9 22,526.5 22,249.5 Current assets 5,419.5 4,509.5 5,050.4 3,948.1 3,615.3 2,590.2 3,187.6 2,589.7 Cash and marketabl

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