SK Telecom (US:SKM)2023-02-08 15:32Financial Data and Key Metrics Changes - Consolidated revenue for fiscal year 2022 was KRW 17,305 billion, an increase of 3.3% year-on-year, while operating income rose to KRW 1,612.1 billion, up 16.2% year-on-year [7] - Net income recorded at KRW 947.8 billion, impacted by a decrease in equity method gains following the spinoff in 2021 [8] - Non-consolidated revenue grew 2.6% year-on-year to KRW 12,414.6 billion, with operating income and net income reported at KRW 1,321.1 billion and KRW 869.5 billion respectively [8] Business Line Data and Key Metrics Changes - The number of 5G subscribers reached 13.39 million, accounting for over 50% of total subscribers, with expectations to reach 80% by 2025 [20] - Pay TV subscribers totaled 9.32 million, supported by synergies between SK Telecom and SK Broadband [21] - The data center business saw over 30% revenue growth year-on-year due to increased utilization rates [17] - The cloud business experienced twofold revenue growth year-on-year, driven by demand for cloud migration [18] Market Data and Key Metrics Changes - Cumulative downloads for ifland reached 21.27 million by the end of 2022, with over 10% of total MAU in December coming from overseas [15] - T Universe became Korea's leading subscription service with an average MAU of over 1 million and annual GMV of approximately KRW 570 billion in 2022 [16] Company Strategy and Development Direction - The company aims to transform into a differentiated AI company, focusing on AI technology and innovative services [6][10] - Plans to launch A., an AI service based on GPT-3 technology, officially within the year, enhancing its functionalities [11][12] - The UAM business is targeted for commercialization in 2025, with efforts to secure competitiveness through partnerships [14] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in the MNO business despite concerns over revenue slowdown, citing ongoing migration from LTE to 5G [38] - The company plans to maintain a stable dividend payout and is considering share buybacks as part of its shareholder return policy [33][36] - Management acknowledged macroeconomic uncertainties but emphasized the importance of maintaining growth in new business areas [25] Other Important Information - The total dividend for 2022 was set at KRW 3,320, with KRW 2,490 already paid out and KRW 830 for Q4 pending approval [23] - The company projects consolidated revenue for 2023 to be KRW 17,800 billion, an increase of approximately 3% year-on-year [24] Q&A Session Summary Question: Outlook for MNO revenue and marketing expenses - Management indicated that while 5G subscribers have reached over 50%, there is still potential for growth in the MNO business due to price options and migration trends [38] Question: Shareholder return policy and dividend outlook - Management stated that the 2023 dividend payout is subject to quarterly performance and emphasized a commitment to maintaining shareholder returns [31][33] Question: Response to MVNO market growth - Management noted that the increase in MVNO market share includes IoT lines and emphasized the importance of customer service differentiation to retain MNO subscribers [42] Question: Demand outlook for data centers - Management acknowledged that increased utilization of AI engines like ChatGPT will likely lead to higher demand for data centers in the long term [62] Question: Business models for UAM - Management indicated that specific business models for UAM services are still under development, with ongoing consultations with partners [78]