SK Telecom (NYSE:SKM) announced its earnings on a K-IFRS consolidated basis for year 2012: revenue of KRW 16.301 trillion, operating income of KRW 1.760 trillion and net income of KRW 1.116 triillion.

 

Despite expanded revenue-decreasing factors like mobile rate cuts and diversified competitive landscape, the revenue increased by 2.3% year-on-year (YoY) backed by its strengthened leadership in LTE, growth of its enterprise business, and strong performance of subsidiaries including SK Broadband and SK Planet.

 

The operating income decreased by 23.3% YoY due to factors including increases in LTE marketing expenses driven by rapid growth of LTE subscribers and investment costs to upgrade networks to accommodate surging data traffic. The consolidated net income for the year 2012 stood at KRW 1.116 trillion, 29.5% lower than that of the previous year.

 

For the fourth quarter of 2012, operating income grew by 81.1% QoQ to mark KRW 544.6 billion and consolidated net income increased by 195.5% to stand at KRW 519.1 billion.

 

Compared to last year, EBITDA fell by 7.8% YoY to KRW 4.339 trillion.

 

As part of its preemptive response to paradigm shift in the mobile telecommunications industry centered on LTE, SK Telecom has completed nationwide LTE rollout in an early manner and commercialized LTE Multi Carrier for the first time in the world on July 1, 2012. CapEx for the year 2012 recorded KRW 2.858 trillion, representing a 25.5% rise compared to that of the year 2011.

 

Based on its world’s top call quality, the company is also providing its customers with differentiated services like T Freemium and actively launching new all-IP services like HD Voice (VoLTE) and joyn.T (RCS). 

SK Telecom’s constant efforts to upgrade network quality and create innovative services have resulted in early achievement of its 2012 year-end target of acquiring 7 million LTE subscribers as of December 12, 2012. The total number of SK Telecom’s LTE subscribers reached 7.53 million as of the end of 2012, further solidifying its leadership in the LTE market In Korea.

 

The company 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.

 

Moreover, SK Telecom plans 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.

 

Meanwhile, building on strong competitiveness of T Store, T Map and 11st, SK Planet aims to also 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.

 

SK Telecom’s Chief Financial Officer Ahn Seung-yun said, "SK Telecom is firmly maintaining its leadership in LTE based on differentiated service quality, and will continue to make ceaseless efforts to provide customers with the highest value and best experience. Going forward, SK Telecom aims to create new successful business models to maximize corporate value and thereby contribute to the development of the overall ICT ecosystem."