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Communications

SK Telecom Co., Ltd.

In the news

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 2020 KRWUSD
Revenue18,624.65B15,785.10M
Gross Profit3,606.40B3,056.56M
Operating income1,338.76B1,134.65M
Income before tax848,637M719.25M
Net income1,489.58B1,262.48M
EBITDA5,329.84B4,517.24M
Diluted EPS20,458.9917.33
Dividends Per Share10,0008.47
Total Assets47,906.95B44,101.03M
Total liabilities23,909.47B22,010.00M
Total equity23,345.13B21,490.50M
Operating cash flow5,807.11B4,921.74M
Currency in KRWCurrency in USD

Historical Data

KRW | USD
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 17,091.81B 17,520.01B 16,873.96B 17,740.71B 18,624.65B
Gross Profit 3,602.46B 3,866.31B 3,542.26B 3,210.25B 3,606.40B
Operating income 1,495.43B 1,530.83B 1,194.04B 1,102.37B 1,338.76B
Income before tax 2,096.13B 3,403.24B 3,975.96B 711,458M 848,637M
Net income 1,659.12B 2,582.98B 3,112.08B 873,932M 1,489.58B
EBITDA 4,437.31B 4,628.29B 4,320.16B 4,959.03B 5,329.84B
Diluted EPS 23,497 36,582 44,066.16 12,127.13 20,458.99
Dividends Per Share 10,000 10,000 10,000 10,000 10,000
Total Assets 31,297.66B 33,428.66B 42,369.11B 45,202.36B 47,906.95B
Total liabilities 15,579.75B 15,797.99B 20,418.62B 22,784.19B 23,909.47B
Total equity 15,572.88B 17,443.62B 22,072.06B 22,551.46B 23,345.13B
Operating cash flow 4,226.32B 3,838.98B 4,316.77B 4,020.21B 5,807.11B
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 14,731.91M 15,497.43M 15,332.74M 15,212.61M 15,785.10M
Gross Profit 3,105.06M 3,419.97M 3,218.72M 2,752.78M 3,056.56M
Operating income 1,288.95M 1,354.10M 1,084.98M 945.28M 1,134.65M
Income before tax 1,806.72M 3,010.36M 3,612.81M 610.07M 719.25M
Net income 1,430.04M 2,284.79M 2,827.83M 749.39M 1,262.48M
EBITDA 3,824.64M 4,093.99M 3,925.56M 4,252.36M 4,517.24M
Diluted EPS 20.25 32.35 40.04 10.39 17.33
Dividends Per Share 8.61 8.84 9.08 8.57 8.47
Total Assets 25,912.94M 31,225.69M 37,971.95M 39,087.17M 44,101.03M
Total liabilities 12,899.27M 14,756.89M 18,299.53M 19,701.84M 22,010.00M
Total equity 12,893.59M 16,294.07M 19,781.37M 19,500.59M 21,490.50M
Operating cash flow 3,642.79M 3,395.79M 3,922.49M 3,447.32M 4,921.74M

Valuation Measures

Dec 2020
PER11.63
ROA3.19%
ROE6.49%
Operating margin7.18%
Profit margin7.99%

Key executives

  • President, Chief Executive Officer & Director: Jung-Ho Park
  • 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 (9.9%)
  • Kakao Corp. (1.7%)
  • Macquarie Investment Management Business Trust (1.3%)
  • SK Telecom Co., Ltd. (1.2%)
  • BlackRock Fund Advisors (0.7%)
  • The Vanguard Group, Inc. (0.7%)
  • Schroder Investment Management Ltd. (0.5%)
  • Norges Bank Investment Management (0.5%)
  • Samsung Asset Management Co., Ltd. (0.4%)

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

  • 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.
  • SK Square Co. 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
  • SK Broadband Co., Ltd
  • Shenzhen E-eye High Tech Co.

Competitors

  • KT Corporation
  • LG Uplus Corp
  • eBay Inc.
  • LG HelloVision Corp.
  • Hyundai Futurenet Co., Ltd
  • CJ ENM Co., Ltd.
  • Taekwang Industrial Co., Ltd.
  • KTCS Corp.
  • KT Skylife Co., Ltd
  • Dexter Studios Co., Ltd.
  • Hanyang Digitech Co., Ltd
  • IHQ, Inc.
  • SEOJIN SYSTEM CO.,LTD

Copyright © 2021 FactSet Research Systems Inc. All rights reserved.

Last Updated on 15 Oct, 2021

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