SK Telecom Co., Ltd. · KRX:017670

SK Telecom — Q1 2014 Earnings Presentation

14 slides from SK Telecom's earnings presentation, Apr 29, 2014

  1. Slide 1: Results for the Quarter Ended March 31, 2014

    Results for the Quarter Ended March 31, 2014 K-IFRS, Non-audited April 29th, 2014 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) 6 Appendix 9 2

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

    Financial Results  Summary of Income Statement (Consolidated) (KRW bn) 1Q14 1Q13 YoY 1Q14 4Q13 QoQ  SK Telecom (“SKT” or the “Company”) operating revenue Operating revenue 4,202 4,066 136 3.4% 4,202 4,295 (93) -2.2% increased 3.4% YoY led by the growth of the LTE service Operating expenses 3,950 3

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

    Financial Results  Operating Expenses (Consolidated) (KRW bn) 1Q14 1Q13 YoY 1Q14 4Q13 QoQ  Labor cost decreased 3.3% YoY as a result of smaller Labor cost 429 444 (15) -3.3% 429 395 34 8.7% incentive bonuses. The seasonal New Year bonuses and Commissions paid 1,628 1,423 205 14.4% 1,628 1,366 262

  6. Slide 6: Financial Results: Operating Revenues (Non-consolidated)

    Financial Results  Operating Revenues (Non-consolidated) YoY QoQ (KRW bn) 1Q14 1Q13 1Q14 4Q13  Total operating revenue increased 4.9% YoY led by the Total operating revenue 3,264 3,112 152 4.9% 3,264 3,316 (53) -1.6% growth of the LTE service and increased new business- Mobile service revenue 2,76

  7. Slide 7: Operating Results (Non-consolidated): ARPU

    Operating Results (Non-consolidated)  ARPU ARPU1) (KRW) 1Q14 1Q13 YoY 1Q14 4Q13 QoQ  Billing ARPU showed steady growth, increasing 4.9% YoY Total ARPU 43,737 40,450 3,288 8.1% 43,737 44,448 (711) -1.6% Billing ARPU2) 35,309 33,668 1,641 4.9% 35,309 35,650 (341) -1.0% led by the growth of the LTE s

  8. Slide 8: Operating Results (Non-consolidated): Subscriber Numbers

    Operating Results (Non-consolidated)  Subscriber Numbers YoY QoQ 1Q14 1Q13 1Q14 4Q13  The number of LTE subscribers reached 14.8m in 1Q14. Subscribers ('000) 27,814 27,030 784 2.9% 27,814 27,352 461 1.7% Net adds 461 68 393 573.4% 461 142 319 225.0% Over 53% of SKT‟s subscribers are currently on t

  9. Slide 9: Operating Results: Marketing Expenses & Capex

    Operating Results (Non-consolidated)  Marketing Expenses & Capex (KRW bn) 1Q14 1Q13 YoY 1Q14 4Q13 QoQ  Marketing expenses increased 21.4% YoY and 30.7% Marketing expenses1) 1,100 907 194 21.4% 1,100 842 258 30.7% % of operating revenue 33.7% 29.1% 4.6%p 33.7% 25.4% 8.3%p QoQ due to the rise in acq

  10. Slide 10: Appendix: Consolidated Income Statement

    Appendix  Consolidated Income Statement (KRW bn) 1Q13 2Q13 3Q13 4Q13 FY13 1Q14 Operating revenue 4,065.7 4,117.0 4,124.6 4,294.8 16,602.1 4,201.9 Operating expenses 3,661.1 3,571.5 3,573.2 3,785.1 14,590.9 3,949.5 Labor cost 444.0 359.2 363.2 395.0 1,561.4 429.1 Commissions paid 1,422.9 1,360.2 1,3

  11. Slide 11: Appendix: SK Telecom Non-consolidated Income Statement

    Appendix  SK Telecom Non-consolidated Income Statement (KRW bn) 1Q13 2Q13 3Q13 4Q13 FY13 1Q14 Operating revenue 3,112.1 3,209.1 3,222.9 3,316.3 12,860.4 3,263.7 Operating expenses 2,692.0 2,676.8 2,685.7 2,836.2 10,890.7 3,012.4 Labor cost 205.3 135.7 134.3 149.1 624.3 171.2 Commissions paid 1,364.

  12. Slide 12: Appendix: Consolidated Balance Sheet

    Appendix  Consolidated Balance Sheet (KRW bn) 1Q13 2Q13 3Q13 4Q13 1Q14 Total assets 25,408.8 25,436.4 25,933.5 26,576.5 26,067.2 Current assets 5,081.7 5,230.7 5,381.6 5,123.4 4,781.8 1) 1,493.0 1,693.5 1,937.0 1,765.1 1,384.1 Cash and marketable securities Accounts receivable 2,920.7 2,936.1 2,911

  13. Slide 13: Appendix: SK Telecom Non-consolidated Balance Sheet

    Appendix  SK Telecom Non-consolidated Balance Sheet (KRW bn ) 1Q13 2Q13 3Q13 4Q13 1Q14 Total assets 22,391.5 22,147.4 22,416.2 22,827.4 22,256.0 Current assets 2,765.8 2,809.9 2,956.8 2,817.8 2,563.8 1) 631.3 659.3 754.5 669.5 489.7 Cash and marketable securities Accounts receivable 1,871.3 1,909.1

  14. Slide 14: IR Contacts

    IR Contacts Dong Seop Kim (82-2-6100-1464, sunson@sk.com) Hun Lee (82-2-6100-1334, hun.lee@sk.com) Woo Sun Cho (82-2-6100-1638, woosun.cho@sk.com) Jung Hyun Kim (82-2-6100-1582, jane.kim@sk.com) 13

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