SK Telecom Co., Ltd. · KRX:017670
SK Telecom — Q1 2020 Earnings Presentation
15 slides from SK Telecom's earnings presentation, May 8, 2020
Slide 1: Investor Briefing 2020 1Q Results
Investor Briefing 2020. 1Q Results (K-IFRS, Non-audited) SK Telecom May 7, 2020 0
Slide 2: Disclaimer
Investor Briefing Disclaimer This presentation contains forward-looking statements with respect to the financial condition, results of operations and business of SK Telecom and its subsidiaries (the “Company”, or “SKT”) and plans and objectives of the management of the Company. The aforementioned fo
Slide 3: Contents
Investor Briefing Contents ’20. 1Q Highlights 3 MNO 6 Media 8 Security 9 Commerce 10 Financial Results 11 Financial Statements 12 Operating Data 14 2
Slide 4: '20 1Q Highlights: Consolidated Financial Highlights
‘20. 1Q Highlights Investor Briefing Consolidated Financial Highlights (KRW bn) 1Q20 1Q19 YoY 4Q19 QoQ Operating 4,450.4 4,334.9 2.7% 4,410.6 0.9% Revenues MNO 1) 2,922.8 2,812.2 3.9% 2,844.7 2.7% Media 2) 823.5 761.1 8.2% 821.2 0.3% Security 3) 291.4 276.5 5.4% 313.4 △7.0% Commerce4) 190.3 199.2 △4
Slide 5: '20 1Q Highlights: Business Highlights
‘20. 1Q Highlights Investor Briefing Biz. Highlights □ 1 year since 5G service launch – laid a foundation for MNO to grow again • 2.65 million 5G subscribers as of 1Q20 • 5G subscriber growth leading to continued growth trend in MNO revenue since 2Q19 • Secured 5G technology leadership with the nati
Slide 6: '20 1Q Highlights: Business Highlights
‘20. 1Q Highlights Investor Briefing Biz. Highlights □ Preemptively responded to growing ‘untact’ trend by seizing business opportunities in security business • Preoccupied the new security market of thermal imaging cameras and mobile ID, among others, that are in line with the growing preference fo
Slide 7: MNO
MNO Investor Briefing While the effects of COVID-19 slowed the revenue growth trend, we expect a steady growth due to 5G service expansion and data usage increase Mobile service revenue ARPU MNO service revenue for 1Q20 recorded ARPU for 1Q20 recorded KRW 30,777, up KRW 2.48 tn, a 4.4% increase YoY,
Slide 8: MNO
MNO Investor Briefing While the effects of COVID-19 slowed the revenue growth trend, we expect a steady growth due to 5G service expansion and data usage increase Marketing expense ‘20 strategy direction 1Q20 marketing expense increased by 13.5% With 5G as a new opportunity, the company YoY due to d
Slide 9: Media
Media Investor Briefing SK Broadband achieved 8% revenue growth YoY, thanks to IPTV growth SK Broadband revenue ‘20 strategy direction Continued IPTV business growth helped 1Q20 Evolve into an integrated media player with revenue record KRW 823.5 bn, up 8.2% YoY ‘wavve’ and SK Broadband, merged with
Slide 10: Security
Security Investor Briefing Security business continued YoY revenue growth thanks to ADT Caps’ leadership in new security business and strong performance of SK Infosec in convergence security business Revenue ‘20 strategy direction 1Q20 security business revenue increased by Continue security busines
Slide 11: Commerce
Commerce Investor Briefing Commerce business revenue grew by 3% YoY under the growing non-face-to-face consumption trend; operating income was close to BEP level Revenue ‘20 strategy direction Greater reward point benefits and strategy to Pursue growth and profitability hand in hand, shrink direct p
Slide 12: Financial Results
Financial Results Investor Briefing Consolidated results SKT non-consolidated results 1Q20 revenue increased 2.7% YoY due to 1Q20 revenue increased by 3.9% YoY due to growth in MNO, media, and security continued 5G subscriber base growth businesses 1Q20 EBITDA increased by 2.7% YoY due to 1Q20 EBITD
Slide 13: Financial Statements – Income Statements
Financial Statements – Income Statements Investor Briefing Consolidated Income Statement (KRW bn) 2018 1Q19 2Q19 3Q19 4Q19 2019 1Q20 Operating revenue 16,874.0 4,334.9 4,437.0 4,561.2 4,410.6 17,743.7 4,450.4 Operating expenses 15,672.2 4,012.3 4,114.2 4,259.1 4,248.1 16,633.7 4,148.4 Labor cost 2
Slide 14: Financial Statements – Financial Position
Financial Statements – Financial Position Investor Briefing Consolidated Balance Sheet (KRW bn) 3-31-18 6-30-18 9-30-18 12-31-18 3-31-19 6-30-19 9-30-19 12-31-19 3-31-20 Total assets 36,134.4 36,336.8 38,186.5 42,369.1 43,346.5 42,590.6 43,983.8 44,611.6 44,332.1 Current assets 8,471.3 7,814.3 9,0
Slide 15: Operating Data
Operating Data Investor Briefing Subscribers (Thousands) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 YoY QoQ 1) MNO subscribers 26,880 27,221 27,277 27,382 27,529 27,649 28,142 28,648 28,748 4.4% 0.3% Net adds 127 341 56 105 148 120 493 506 100 -32.2% -80.2% Activations 1,017 1,154 933 964 948 89