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Communications

SK Telecom Co., Ltd.

Company Background

SK Telecom is South Korea's largest cellphone service provider. It began as a subsidiary of a state-owned communications company in 1984, providing car-phone services. In 1997, the company became a subsidiary of SK Group, South Korea's third-largest conglomerate in terms of asset size. The group engages in energy and fiber businesses.

SK, the holding company of SK Group, is SK Telecom's largest shareholder. SK Group chairman Chey Tae-won also has a stake in the company. It is listed on the Korea Stock Exchange and the New York Stock Exchange.

Improving the country's communications environment is a South Korean national project. SK Telecom has often launched the world's fastest communication services ahead of foreign rivals. Having electronics makers with a great degree of telecom-related expertise such as Samsung Electronics and LG Electronics at home is one of the company's strengths.

Given South Korea's population and economic growth rates are slowing, while the smartphone penetration rate is already high, the company needs to develop new revenue sources for further growth. The company's cellphone services in Mongolia, Vietnam and the U.S. have achieved limited success.

Business Summary

SK Telecom Co., Ltd. engages in the provision of wireless telecommunication and internet services. Its products include mobile phones, wireless data, information communication, and others. The company was founded on March 29, 1984 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2021 KRWUSD
Revenue16,748.58B14,625.54M
Gross Profit3,122.00B2,726.26M
Operating income1,383.16B1,207.83M
Income before tax1,271.89B1,110.66M
Net income1,202.75B1,050.29M
EBITDA5,055.72B4,414.86M
Diluted EPS7,187.226.27
Dividends Per Share2,522.682.20
Total Assets30,911.27B26,003.17M
Total liabilities18,974.89B15,962.05M
Total equity11,180.58B9,405.33M
Operating cash flow5,016.51B4,380.62M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 17,520.01B 16,873.96B 17,740.71B 16,087.74B 16,748.58B
Gross Profit 3,866.31B 3,542.26B 3,210.25B 3,040.90B 3,122.00B
Operating income 1,530.83B 1,194.04B 1,102.37B 1,241.93B 1,383.16B
Income before tax 3,403.24B 3,975.96B 711,458M 852,762M 1,271.89B
Net income 2,582.98B 3,112.08B 873,932M 633,813M 1,202.75B
EBITDA 4,628.29B 4,320.16B 4,959.03B 4,906.60B 5,055.72B
Diluted EPS 12,046.19 14,510.67 3,993.38 6,737.00 7,187.22
Dividends Per Share 3,292.92 3,292.92 3,292.92 3,292.92 2,522.68
Total Assets 33,428.66B 42,369.11B 45,202.36B 47,906.95B 30,911.27B
Total liabilities 15,797.99B 20,418.62B 22,784.19B 23,909.47B 18,974.89B
Total equity 17,443.62B 22,072.06B 22,551.46B 23,345.13B 11,180.58B
Operating cash flow 3,838.98B 4,316.77B 4,020.21B 5,807.11B 5,016.51B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 15,497.43M 15,332.74M 15,212.61M 13,634.97M 14,625.54M
Gross Profit 3,419.97M 3,218.72M 2,752.78M 2,577.27M 2,726.26M
Operating income 1,354.10M 1,084.98M 945.28M 1,052.58M 1,207.83M
Income before tax 3,010.36M 3,612.81M 610.07M 722.74M 1,110.66M
Net income 2,284.79M 2,827.83M 749.39M 537.18M 1,050.29M
EBITDA 4,093.99M 3,925.56M 4,252.36M 4,158.53M 4,414.86M
Diluted EPS 10.65 13.18 3.42 5.70 6.27
Dividends Per Share 2.91 2.99 2.82 2.79 2.20
Total Assets 31,225.69M 37,971.95M 39,087.17M 44,101.03M 26,003.17M
Total liabilities 14,756.89M 18,299.53M 19,701.84M 22,010.00M 15,962.05M
Total equity 16,294.07M 19,781.37M 19,500.59M 21,490.50M 9,405.33M
Operating cash flow 3,395.79M 3,922.49M 3,447.32M 4,921.74M 4,380.62M

Valuation Measures

Dec 2021
PER8.05
ROA3.05%
ROE6.96%
Operating margin8.25%
Profit margin7.18%

Key executives

  • President, Chief Executive Officer & Director: Young Sang Ryu
  • Head-Finance: Jin-Won Kim
  • Head-Legal & Compliance Support: Yong-Joo Park
  • Senior Vice President: Joong Suk Oh
  • Executive Board Member: Ho-Soo Lee

Shareholders

  • SK Inc. (30.0%)
  • National Pension Service of Korea (7.5%)
  • Kakao Corp. (1.7%)
  • Norges Bank Investment Management (1.2%)
  • GQG Partners LLC (1.1%)
  • Macquarie Investment Management Business Trust (1.1%)
  • Schroder Investment Management Ltd. (0.9%)
  • APG Asset Management NV (0.7%)
  • McKinley Capital Management LLC (0.7%)
  • Wellington Management Co. LLP (0.6%)

Contact Details

  • Website:http://www.sktelecom.com
  • Address: SKT Tower, 65 Eulji-ro, Jung-gu, Seoul, 04539, South Korea
  • Phone: +82.2.6100.2114

Related Companies

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  • Sk Telecom Co. Ltd. /AI Semiconductor Bus/
  • Quantum Innovation Fund I
  • Happy Hanool Co., Ltd.
  • SK Technology Innovation Co.
  • SK Latin America Investment SA
  • SK MENA Investment BV
  • SK Telecom Japan, Inc.
  • SK Telecom TMT investment Corp.
  • SKT America, Inc.
  • SK Global Healthcare Business Group Ltd.
  • TMAPMOBILITY Co., Ltd.
  • SK Telecom Co. Ltd. /ICT Assets/
  • Broadband Nowon Co., Ltd.
  • Broadband Nowon Broadcasting Corp.
  • SK stoa Co., Ltd.
  • SK Telecom Co., Ltd. (United States)
  • Cyworld China (Holdings) Ltd.
  • SK infosec Co., Ltd.
  • 11Street
  • SK Telecom Americas Innopartners
  • Service Top Co., Ltd.
  • Service Ace Co., Ltd. (South Korea)
  • NBJ Games Co., Ltd.
  • Network O&S
  • SK Planet Co., Ltd.
  • Ps & Marketing Corp.
  • YTK Investments LLC
  • SK Networks Co., Ltd. /Leased Line Business/
  • SK Telecom Ventures LLC

Competitors

  • KT Corporation
  • LG Uplus Corp
  • LG HelloVision Corp.
  • Hyundai Futurenet Co., Ltd
  • KT Skylife Co., Ltd
  • CJ ENM Co., Ltd.
  • GalaxiaMoneytree Co. Ltd
  • Taekwang Industrial Co., Ltd.
  • BK TOPS Co., Ltd.
  • Dexter Studios Co., Ltd.
  • Hanyang Digitech Co., Ltd
  • IHQ, Inc.
  • KTCS Corp.
  • Peraso, Inc.
  • SALTLUX Inc
Last Updated on 30 Sep, 2022

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