SK Telecom (US:SKM)2025-04-16 11:09Financial Performance - The Company's revenue increased by 1.9% from 2023 to Won 17.94 trillion in 2024, driven by growth in wireless and fixed-line telecommunications subscribers and the B2B business[183]. - Operating profit rose by 4% from 2023 to Won 1.82 trillion in 2024, with an operating profit margin of 10.2%[183]. - The wireless business accounted for 74% of the Company's operating revenue in 2024, while the fixed-line business contributed 23%[196]. - SK Broadband's IPTV revenue increased by 1.9% from 2023 to Won 1.55 trillion in 2024, driven by a growing number of subscribers and higher ARPU from premium products[206]. - Revenue from high-speed Internet services rose by 5.2% from 2023 to Won 1.55 trillion in 2024, primarily due to an increase in premium plan subscribers[207]. - Revenue from cable TV services decreased by 3.6% from 2023 to Won 369.6 billion in 2024, attributed to a slight decline in subscriber numbers[206]. - The company reported cash flow from operating activities of Won 5.09 trillion for the year ended December 31, 2024, compared to Won 4.95 trillion in 2023[224]. - The company has set a consolidated operating revenue guidance of Won 17.8 trillion for fiscal year 2025[222]. Subscriber Growth - As of December 31, 2024, the Company had over 16.92 million 5G wireless subscribers, accounting for more than 74% of total subscribers[184]. - The total number of media subscribers surpassed 9.6 million in 2024, indicating steady growth in the media business[206]. Capital Expenditures and Investments - Capital expenditures for network investment totaled Won 1.54 trillion in 2024, focusing on expanding 5G service coverage and maintaining network quality[202]. - Capital expenditures for 2024 amounted to Won 2.39 trillion, aimed at enhancing network infrastructure and investing in growth businesses[235]. - The Company strengthened its global AI partnerships through equity investments in AI-related sectors, focusing on AI data centers and collaborations with leading global AI technology firms[186]. Financial Position - The total assets increased to Won 30.52 trillion as of December 31, 2024, primarily due to an increase in cash and cash equivalents[191]. - Current liabilities rose to Won 9.22 trillion as of December 31, 2024, mainly due to an increase in accounts payable[192]. - The company's debt-to-equity ratio was 76.8% as of December 31, 2024, up from 74.0% in 2023[226]. - As of December 31, 2024, the company had cash and cash equivalents of Won 2,023.7 billion, reflecting a significant increase from the previous year[225]. Governance and Compliance - The company received unqualified audit opinions from Ernst & Young Han for the years ended December 31, 2022, 2023, and 2024, indicating no significant issues with the financial statements[241]. - The audit committee held multiple meetings in 2024, discussing key matters such as the 2023 audit results and plans for 2024[245]. - The Board of Directors consists of nine members, including three inside directors and five independent directors, ensuring a diverse governance structure[247]. - The company has established an ESG Committee to deliberate on ESG plans and mandatory disclosures[259]. - The company has committed to improving business procedures to prevent future errors and ensure compliance with regulatory requirements[358][359][364][365][366][367]. Shareholder Information - The company approved dividends for the first quarter of 2024 during the Board meeting on April 25, 2024[253]. - The Board of Directors approved an annual cash dividend of Won 1,050 per share, totaling Won 223,531 million, with a dividend return rate of 1.9% based on market price[369]. - The company implemented a cumulative voting system for shareholders as of December 31, 2024[264]. - The company has a structured approach to equity compensation, including PSUs and SARs, to align management incentives with long-term shareholder value[308]. Employee Compensation - The average wage for employees in 2024 is 161 million Won, with a total aggregate wage of 886,451 million Won for 5,493 employees[282]. - The total fair value of stock options granted to inside directors is Won 105,237,755, while the total for executives is Won 741,117,509, leading to a combined total of Won 846,355,264[297]. - The company granted a total of 243,451 PSUs in 2024, an increase from 228,708 PSUs granted in 2023, indicating a growth of approximately 6.5% year-over-year[307]. Regulatory Issues - SK Telecom was fined 16,829 million Won by the KFTC for inappropriate advertising practices related to wireless service promotions[356]. - The company faced a fine of 1,428 million Won for collusion in bidding prices during negotiations for renting locations for base stations[356]. - The company faced a fine of Won 314 million for false and exaggerated advertising of bundled services, with an implementation plan submitted to improve procedures[366]. - SK Broadband was fined Won 1.093 billion for discriminatory practices in providing gifts to users as part of its telecommunication bundle products[364].