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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 2019 KRWUSD
Revenue17,743.70B15,215.17M
Gross Profit3,289.05B2,820.35M
Operating income1,104.17B946.82M
Income before tax713,112M611.49M
Net income875,141M750.43M
EBITDA4,875.66B4,180.86M
Diluted EPS12,143.9110.41
Dividends Per Share10,0008.57
Total Assets44,611.62B38,576.35M
Total liabilities22,186.84B19,185.30M
Total equity22,558.07B19,506.30M
Operating cash flow3,971.31B3,405.39M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 17,136.73B 17,091.81B 17,520.01B 16,873.96B 17,743.70B
Gross Profit 3,711.21B 3,602.46B 3,866.31B 3,542.26B 3,289.05B
Operating income 1,692.68B 1,495.43B 1,530.83B 1,194.04B 1,104.17B
Income before tax 2,035.36B 2,096.13B 3,403.24B 3,975.96B 713,112M
Net income 1,501.76B 1,659.12B 2,582.98B 3,112.08B 875,141M
EBITDA 4,537.97B 4,437.31B 4,628.29B 4,320.16B 4,875.66B
Diluted EPS 20,988 23,497 36,582 44,066.16 12,143.91
Dividends Per Share 10,000 10,000 10,000 10,000 10,000
Total Assets 28,581.38B 31,297.66B 33,428.66B 42,369.11B 44,611.62B
Total liabilities 13,605.80B 15,579.75B 15,797.99B 20,418.62B 22,186.84B
Total equity 14,852.56B 15,572.88B 17,443.62B 22,072.06B 22,558.07B
Operating cash flow 3,761.28B 4,226.32B 3,838.98B 4,316.77B 3,971.31B
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 15,141.08M 14,731.91M 15,497.43M 15,332.74M 15,215.17M
Gross Profit 3,279.02M 3,105.06M 3,419.97M 3,218.72M 2,820.35M
Operating income 1,495.56M 1,288.95M 1,354.10M 1,084.98M 946.82M
Income before tax 1,798.33M 1,806.72M 3,010.36M 3,612.81M 611.49M
Net income 1,326.87M 1,430.04M 2,284.79M 2,827.83M 750.43M
EBITDA 4,009.51M 3,824.64M 4,093.99M 3,925.56M 4,180.86M
Diluted EPS 18.54 20.25 32.35 40.04 10.41
Dividends Per Share 8.83 8.61 8.84 9.08 8.57
Total Assets 24,375.40M 25,912.94M 31,225.69M 37,971.95M 38,576.35M
Total liabilities 11,603.60M 12,899.27M 14,756.89M 18,299.53M 19,185.30M
Total equity 12,666.88M 12,893.59M 16,294.07M 19,781.37M 19,506.30M
Operating cash flow 3,323.27M 3,642.79M 3,395.79M 3,922.49M 3,405.39M

Valuation Measures

Dec 2019
PER19.59
ROA2.01%
ROE3.92%
Operating margin6.22%
Profit margin4.93%

Key executives

  • President, Chief Executive Officer & Director: Jung-Ho Park
  • Head-Finance: Jin-Won Kim
  • Head-ICT Technology division: Jin-Hyo Park
  • Head-Legal & Compliance Support: Yong-Joo Park
  • Executive Board Member: Yong-Hwan Lee

Shareholders

  • SK Holdings Co., Ltd. (26.7%)
  • National Pension Service of Korea (11.5%)
  • SK Telecom Co., Ltd. (9.4%)
  • Causeway Capital Management LLC (1.3%)
  • Macquarie Investment Management Business Trust (0.9%)
  • Samsung Asset Management Co., Ltd. (0.9%)
  • BlackRock Fund Advisors (0.9%)
  • Nordea Investment Management AB (Denmark) (0.7%)
  • The Vanguard Group, Inc. (0.6%)
  • Norges Bank Investment Management (0.5%)

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

  • SK China Real Estate Co. Ltd.
  • SK stoa Co. Ltd.
  • SK Telecom Co., Ltd. (United States)
  • Cyworld China (Holdings) Ltd.
  • SK infosec Co., Ltd.
  • 11Street
  • SK Telecom Americas Innopartners
  • Service Ace Co., Ltd. (South Korea)
  • NBJ Games Co., Ltd.
  • SKP America LLC
  • Network O&S
  • SK Planet Co., Ltd.
  • Ps & Marketing Corp.
  • SK Networks Co., Ltd. /Leased Line Business/
  • SK Telecom Ventures LLC
  • SK Broadband Co., Ltd
  • Shenzhen E-eye High Tech Co.
  • SK Telink Corp.
  • SK Telecom Co., Ltd. Employee Stock Ownership Association
  • SK Communications Co., Ltd
  • Dreamus Company
  • TU Media Corp
  • SK Telecom China Co., Ltd.
  • FaceOne
  • ShinSegi Telecom, Inc.
  • PAXnet
  • SK Telecom Usa Holdings, Inc.

Competitors

  • KT Corporation
  • CJ ENM Co., Ltd.
  • LG Uplus Corp
  • GS Home Shopping Inc.
  • Alphabet Inc. Class A
  • Interpark Holdings Corporation
  • eBay Inc.
  • Hyundai Home Shopping Network Corporation
  • Lotte Corp
  • Shinsegae Co., Ltd
  • LG HelloVision Corp.
  • Taekwang Industrial Co., Ltd.
  • Hyundai HCN Co., Ltd.
  • Inscobee, Inc.
  • KTCS Corp.
  • KT Skylife Co., Ltd
  • Hanyang Digitech Co., Ltd
  • KINX Inc.
  • SEOJIN SYSTEM CO.,LTD
  • Taihan Fiberoptics Co., Ltd
Last Updated on 1 Jun, 2020

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