5G Subscriber Growth Brisk
The author is an analyst of KB Securities. He can be reached at joonsop.analyst@kbfg.com. -- Ed.
3Q21 earnings in line with market consensus on brisk media/wireless telecom business
— SK telecom reported preliminary 3Q21 consolidated revenue of KRW4.97tn (+5.0% YoY), OP of KRW400.0bn (+11.7% YoY) and NP (to control. int.) of KRW784.2bn (+104.8% YoY).
— 3Q21 OP met our estimate of KRW411.0bn and the market consensus of KRW396.0bn (FnGuide; 3m-basis).
— On a standalone basis, wireless MNO saw OP come in at KRW319.6bn (+21.9% YoY), with a rise in no. of 5G subscribers (i.e., higher ARPU) driving top-line expansion.
— SK broadband saw revenue/OP advance 6.1% YoY/21.3% YoY on solid IPTV subscriber growth and B2B growth.
Wireless revenue (standalone) up 2.9% YoY on brisk 5G subscriber growth
— On a standalone basis, SK telecom revenue stood at KRW3.03tn (+2.9% YoY), with a rise in no. of 5G subscribers (at 8.65mn; +950,000 QoQ) raising market share to 47%.
— 3Q21 marketing costs rose by KRW11.7bn QoQ to KRW817.0bn (+6.9% YoY, +1.5% QoQ) because of the launch of flagship phones and higher no. of 5G subscribers. However, we expect marketing costs to plummet, as the depreciable period (26 months of customer life cycle) for marketing costs, which were concentrated in the initial period of 5G phone launches, is poised to end.
SK broadband revenue up 6.1% YoY, reaching KRW1.02tn on IPTV subscriber growth, B2B growth for IDC
— SK broadband reported revenue/OP of KRW1.02tn (+6.1% YoY)/KRW78.6bn (+21.3% YoY) and 7.7% OPM (+1.0pp YoY), supported by growth in paid broadcasting/B2B business.
— The no. of IPTV subscribers increased by net 115,000, reaching 6.03mn (8.91mn incl. CATV subscribers), driving ARPU growth and contributing to higher commission income from home shopping channels.
— A new IDC in Gasan-dong (opened in July) contributed to higher revenue, according to inews24 (Nov 10). This should bring in more customers, serving as a growth driver going forward.