SK Telecom (US:SKM)2021-02-03 20:55Financial Data and Key Metrics Changes - Consolidated revenue for fiscal year 2020 recorded KRW 18,624.7 billion, up 5% year-on-year [4] - Consolidated operating income recorded KRW 1,349.3 billion, up 21.8% year-on-year [5] - Net income increased by 74.3% year-on-year due to equity method income from SK Hynix [5] Business Line Data and Key Metrics Changes - Non-consolidated MNO revenue for 2020 recorded KRW 11,746.6 billion, up 2.8% year-on-year [6] - MNO operating income grew 7.5% year-on-year to record KRW 1,023.1 billion [7] - SK Broadband's consolidated revenue recorded KRW 3,713.5 billion, up 17.2% year-on-year [11] - Security business revenue recorded KRW 1,338.6 billion, up 12.2% year-on-year [11] - Commerce revenue recorded KRW 814.3 billion, up 12.1% year-on-year [12] Market Data and Key Metrics Changes - 5G subscriber count stood at 5.48 million as of the end of 2020, expected to reach 9 million by the end of 2021 [8] - The merger of SK Broadband and t-broad contributed to the growth in pay-TV subscribers, reaching 8.59 million in 2020 [14] Company Strategy and Development Direction - The company aims to transform its MNO business into an AI platform-based subscription service company [9][10] - Plans to introduce various subscription products and services beyond mobile lines for smartphones [9] - The security business is expected to double its revenue to surpass KRW 1.6 trillion after the merger of ADT Caps and SK Infosec [15] - T Map Mobility aims to grow into an all-in-one Mobility-as-a-Service provider [18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of KRW 19,500 billion for 2021, up 5% year-on-year [22] - The company emphasized the importance of innovation and a competitive business portfolio to remain resilient in a non-face-to-face business environment [23] Other Important Information - The dividend for 2020 has been decided at KRW 10,000, pending approval at the March AGM [22] - The company is preparing for the IPO of ONE Store this year [20] Q&A Session Summary Question: Corporate governance structure change likelihood - Management is open to possibilities regarding corporate governance changes to maximize shareholder value but has not made specific decisions yet [27][28] Question: Impact of lower-end 5G price plans on earnings - The new online-only price plan is about 30% lower than existing tariffs, expected to slightly decrease ARPU but increase subscriber growth and revenue [30] Question: Dividend policy and expectations for MNO performance - The year-end dividend for fiscal year 2020 is set at KRW 9,000, with discussions ongoing for potential increases based on MNO performance [34][35] Question: Marketing situation post-device launches - Marketing subsidies may temporarily increase with new device launches, but a stable market trend is expected to continue [36] Question: AI-based subscription service company transformation - The target is to reach 20 million subscription service users by 2023 with a revenue target of KRW 600 billion [42] Question: T Map Mobility's current situation and expectations - T Map Mobility is on track for a joint venture with Uber and plans to launch various services gradually [44] Question: Strategies for wavve and collaboration with Amazon - The company is exploring various options for partnerships to enhance wavve's competitiveness and is preparing for collaboration with Amazon for 11ST [50][53]