SK Telecom Performance

SK Telecom achieved the earnings for the third quarter of 2016 with revenue of 4.244 trillion won, operating income of 424.3 billion and net income of 322.1 billion won.
SK Telecom achieved the earnings for the third quarter of 2016 with revenue of 4.244 trillion won, operating income of 424.3 billion and net income of 322.1 billion won.

 

SK Telecom on Oct. 27 announced its earnings on a K-IFRS consolidated basis for the third quarter of 2016 with the revenue standing at 4.244 trillion won, the operating income at 424.3 billion won and the net income at 322.1 billion won.

Although SK Telecom and its subsidiaries, including SK Broadband and SK Planet, posted increased sales, the revenue edged down by 0.6 percent quarter-on-quarter (QoQ) to KRW 4.244 trillion due to decreased sales of PS&M.

Compared to the previous quarter, the operating income grew by 4.2 percent to 424.3 billion won backed by the improved performance of its subsidiaries including SK Broadband and SK Planet, and EBITDA increased by 2.5 percent QoQ to 1.189 trillion won.

The net income climbed by 10.7 percent QoQ to stand at 322.1 billion won affected by the equity-method income from SK Hynix.

SK Telecom began providing its mobile navigation service “T Map” free of charge to subscribers of other Korean mobile carriers since July 2016, and the number of monthly T Map users grew to a record high of 9.18 million as of the end of September 2016. The company projects that T Map will play a bigger role in its intelligent transport systems as data collected via T Map can be utilized for the development of connected services and autonomous technology in vehicles.

Moreover, SK Telecom has opened “T Phone” free of charge to non-SK Telecom customers in July 2016. The number of T Phone subscribers surpassed 10 million as of August 2016. The company is currently working on exporting the platform to overseas markets.

SK Broadband and SK Planet, SK Telecom’s subsidiaries promoting business in the area of media and commerce platforms, respectively, are sustaining robust growth. From Jan. 1 to Sept. 30, 2016, SK Broadband has added a total of 390,000 IPTV subscribers, which is the largest increase among all IPTV players in Korea. SK Planet’s “11th Street” has further solidified its leadership in the online/mobile commerce market, boasting the largest number of unique visitors, and is witnessing a continuous increase in the total amount of transactions.

Meanwhile, SK Telecom has also focused on strengthening its core competitiveness as a mobile network operator by launching special price plans designed to meet the different usage patterns of customers along with designated mobile devices. On Oct. 12, 2016, by ranking number one in the Korean Customer Satisfaction Index (KCSI) for 19 consecutive years, SK Telecom has topped all three national satisfaction surveys this year in the category of mobile telecommunications.

In September 2016 SK Telecom launched NUGU, a voice-activated Artificial Intelligence (AI) service. The company plans to build an ecosystem by working closely with many startups, venture companies and experts, and promote the growth of the AI industry in Korea.

Furthermore, SK Telecom is making efforts to enhance customer convenience by utilizing its nationwide IoT networks – i.e. LoRa and LTE-M networks. The company has already completed the development of 24 different IoT services in areas including gas and electricity.

“We expect that our strategy to fully open up major platforms, including T Map and T Phone, will lead to a successful outcome in the mid-to long-term,” said Hwang Keun-joo, CFO and head of the Strategy and Planning Division at SK Telecom, adding, “SK Telecom will accelerate its transformation into a next-generation platform company and keep developing customer-oriented products and services.”

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