Telecom Lead Asia: SK Telecom has clocked 2.3 percent increase in revenue to KRW 16.301 trillion in 2012.
In Q4, 2012, SK Telecom’s revenue increased 1.7 percent to KRW 4.197 trillion.
Consolidated net income decreased 29.5 percent to KRW 1.116 trillion in 2012.
The marginal increase in revenue was despite expanded revenue-decreasing factors like mobile rate cuts and diversified competitive landscape.
SK Telecom increased growth in its enterprise business and LTE subscribers.
The operating income decreased by 23.3 percent in 2012 due to factors including increases in LTE marketing expenses driven by growth of LTE subscribers and investment costs to upgrade networks to accommodate surging data traffic.
For the fourth quarter of 2012, net income increased 195.5 percent to KRW 519.1 billion.
Capex (Capital expenditure) for the year 2012 recorded KRW 2.858 trillion, up 25.5 percent.
SK Telecom’s LTE subscribers reached 7.53 million as of the end of 2012.
STRATEGIES
The Korean mobile service provider aims to maximize customer and corporate value by leading innovative growth in its mobile network business as well as new business areas. It plans to shift away from subsidy competition and instead focus on offering products and services capable of delivering differentiated value to customers, resulting in innovative changes in their lifestyles.
SK Telecom is also planning to promote new business areas like solutions, media and health care. It will shape its solutions business into the core pillar of its enterprise business; strengthen media and content business through wired and wireless IPTV (Btv, Btv Mobile); and fully utilize its capability in ICT to begin generating tangible results in health care markets of both home and abroad.
Building on competitiveness of T Store, T Map and 11st, SK Planet aims to develop new growth drivers and realize synergies in big data, digital contents and commerce through its merger with SK M&C, which took place on February 1, 2013.
(INCOME DETAILS Unit: KRW 1 Billion)
Type | YoY | QoQ | ||||
2012 | 2011 | Change | ’12. 4Q | ’12. 3Q | Change | |
Revenue | 16,301 | 15,927 | 2.3% | 4,197 | 4,126 | 1.7% |
Operating
Expenses |
14,540 | 13,631 | 6.7% | 3,653 | 3,825 | -4.5% |
Operating
Income |
1,760 | 2,296 | -23.3% | 545 | 301 | 81.1% |
Consolidated
Net Income |
1,116 | 1,582 | -29.5% | 519 | 176 | 195.5% |
ARPU DETAILS
(Unit: KRW)
Type | YoY | QoQ | ||||
2012 | 2011 | Change | ’12. 4Q | ’12. 3Q | Change | |
ARPU* | 33,016 | 33,178 | -0.5% | 33,761 | 33,135 | 1.9% |
* Billing ARPU (excluding sign-up fee from mobile service revenues)
* Annual ARPU edged down 0.5% YoY affected by factors including mobile rates cuts (implemented since September 2011), while quarterly ARPU expanded by 1.9% QoQ, continuing its growth for three consecutive quarters due to strong LTE subscriber growth.