SK Telecom Co., Ltd.
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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
Financial Highlights
| Dec 2019 | KRW | USD |
| Revenue | 17,743.70B | 15,215.17M |
| Gross Profit | 3,289.05B | 2,820.35M |
| Operating income | 1,104.17B | 946.82M |
| Income before tax | 713,112M | 611.49M |
| Net income | 875,141M | 750.43M |
| EBITDA | 4,875.66B | 4,180.86M |
| Diluted EPS | 12,143.91 | 10.41 |
| Dividends Per Share | 10,000 | 8.57 |
| Total Assets | 44,611.62B | 38,576.35M |
| Total liabilities | 22,186.84B | 19,185.30M |
| Total equity | 22,558.07B | 19,506.30M |
| Operating cash flow | 3,971.31B | 3,405.39M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 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 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 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 | |
| PER | 19.59 |
| ROA | 2.01% |
| ROE | 3.92% |
| Operating margin | 6.22% |
| Profit margin | 4.93% |
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 (11.4%)
- SK Telecom Co., Ltd. (9.4%)
- BlackRock Fund Advisors (1.1%)
- Macquarie Investment Management Business Trust (1.0%)
- Nordea Investment Management AB (Denmark) (0.6%)
- The Vanguard Group, Inc. (0.6%)
- Norges Bank Investment Management (0.5%)
- Mirae Asset Global Investments Co., Ltd. (0.3%)
- McKinley Capital Management LLC (0.3%)
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
- LG Uplus Corp
- CJ ENM Co., Ltd.
- GS Home Shopping Inc.
- Alphabet Inc. Class A
- S-1 Corp.
- Interpark Corporation
- AhnLab, Inc.
- eBay Inc.
- Hyundai Home Shopping Network Corporation
- Lotte Shopping Co., Ltd
- WINS Co., Ltd.
- SECUI Corp.
- LG HelloVision Corp.
- Taekwang Industrial Co., Ltd.
- Hyundai Futurenet Co., Ltd
- Inscobee, Inc.
- KTCS Corp.
- KT Skylife Co., Ltd
- Dexter Studios Co., Ltd.
- Hanyang Digitech Co., Ltd
- SEOJIN SYSTEM CO.,LTD
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Last Updated on 27 Nov, 2020
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