SK Telecom (US:SKM)2025-02-28 11:11Corporate Governance - The board of directors has resolved to call the annual general meeting of shareholders on March 26, 2025, to approve the financial statements for the fiscal year 2024[4]. - The total amount of remuneration paid to directors for fiscal year 2024 was Won 5,781,914,670, with a maximum authorized amount for fiscal year 2025 set at Won 10,000,000,000[16]. - The company plans to amend its Articles of Incorporation to enhance dividend predictability by allowing the record date for quarterly dividends to be set after the Board's resolution[7]. - The company appointed Kang, Dong-soo as a non-executive director, who has extensive experience in business strategy and finance, expected to contribute to growth in telecommunications and AI sectors[11]. - Kim, Changbo has been nominated as an independent non-executive director and audit committee member, bringing expertise in risk management and compliance[12][14]. - The number of directors will decrease from nine to eight if the appointment agenda is approved at the annual general meeting[16]. - The company aims to strengthen the independence and expertise of the audit committee through the appointment of qualified candidates[17]. - The company emphasizes the importance of management transparency and shareholder rights protection through the appointment of independent directors[17]. Financial Performance - Operating revenue for 2024 reached W 17,940,609 million, an increase of 1.88% from W 17,608,511 million in 2023[22]. - Operating profit for 2024 was W 1,823,409 million, up 4.00% compared to W 1,753,204 million in 2023[22]. - Profit for the year increased to W 1,438,795 million in 2024, representing a growth of 25.59% from W 1,145,937 million in 2023[24]. - Basic earnings per share rose to W 6,023 in 2024, a 21.58% increase from W 4,954 in 2023[22]. - The company reported a total comprehensive income of W 1,599,571 million for 2024, up from W 1,121,970 million in 2023, indicating a growth of 42.66%[24]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[22]. - Profit for the year increased to W 1,438,795 million in 2024, up from W 1,145,937 million in 2023, representing a growth of 25.5%[29]. Assets and Liabilities - Current assets increased to 5.3 million won as of December 31, 2024, compared to 4.3 million won in 2023, reflecting a growth of approximately 23.3%[19]. - Total assets as of December 31, 2024, were W 30,515,255 million, compared to W 30,119,227 million in 2023, reflecting a growth of 1.31%[20]. - Total liabilities increased to W 18,635,921 million in 2024, up from W 17,890,828 million in 2023, marking a rise of 4.15%[20]. - Shareholders' equity attributable to owners of the Parent Company was W 11,750,327 million in 2024, compared to W 11,389,046 million in 2023, an increase of 3.17%[20]. - Non-controlling interests decreased significantly from W 839,353 million in 2023 to W 129,007 million in 2024[20]. Cash Flow - Net cash provided by operating activities rose to W 5,087,285 million in 2024, compared to W 4,947,205 million in 2023, an increase of 2.8%[30]. - Net cash used in investing activities decreased to W (2,711,827) million in 2024 from W (3,352,905) million in 2023, reflecting a reduction of 19.1%[30]. - Cash inflows from financing activities totaled W 1,552,192 million in 2024, down from W 2,416,817 million in 2023, a decline of 35.8%[30]. - The company reported a net increase in cash and cash equivalents of W 565,605 million in 2024, compared to a decrease of W (426,690) million in 2023[30]. Investments and Subsidiaries - SK Telecom established a new subsidiary, Astra AI Infra LLC, in 2024, while several subsidiaries were excluded from consolidation due to liquidation or loss of control[39]. - The non-controlling interest in SK Broadband Co., Ltd. decreased in 2024, resulting in no material non-controlling interests for the Group as of December 31, 2024[40]. - Total assets of SK Broadband Co., Ltd. reached W 6,806,280 million in 2024, with total liabilities of W 3,760,426 million and total equity of W 3,045,854 million[37]. - Revenue for SK Broadband Co., Ltd. was W 4,415,270 million in 2024, an increase from W 4,281,932 million in 2023, showing a growth of 3.1%[37]. Tax and Compliance - The Group expects the exposure to Pillar Two income tax, effective January 1, 2024, to be immaterial based on recent assessments[57]. - The Group assesses uncertainty over income tax treatments and reflects the effect of uncertainty using the most likely amount or expected value methods[183]. - Deferred tax assets and liabilities are measured at expected tax rates applicable when the asset is realized or the liability is settled[181]. Accounting Policies - The Group applies hedge accounting for derivatives to manage interest rate and foreign exchange risks, with changes in fair value recognized in other comprehensive income for effective hedges[104]. - Property and equipment are initially measured at cost and depreciated over their estimated useful lives, which range from 3 to 40 years depending on the asset type[110]. - Intangible assets are measured at cost and amortized on a straight-line basis, except for those with indefinite useful lives such as club memberships and brands[113]. - The Group derecognizes financial assets when contractual rights to cash flows expire or when risks and rewards of ownership are transferred[88]. Research and Development - Expenditures on research activities are recognized in profit or loss as incurred, while development expenditures are capitalized only if they meet certain criteria[116].