content area
Press Release
The net income of 1.94 trillion Korean won, and total sales of 9.52 trillion won, were the highest net income and sales ever recorded by SK Telecom
Net income increased by 431.50 billion won(29%), and total sales rose 886.20 billion won (14%), over the previous year
Sales of wireless Internet service increased by 588.80 billion won, which was an increase of 81% over the results for the year 2002
On February 6th, SK Telecom announced that the company achieved a net income of 1.94 trillion won, and total sales of 9.52 trillion won, for the year 2003. In addition, EBITDA came to 494.80 billion won. SK Telecom’s total sales and net income for 2003 increased 886.20 billion won (up 10%), and 431.50 billion won (up 29%) respectively, over the year 2002. EBITDA showed a 12% increase over the 494.80 billion won recorded last year. This represented the best business performance ever reached in the company’s history.
An SK Telecom official revealed that monthly average call traffic volume per user (Minutes of Usage) recorded 197 minutes, a 3% increase over the previous year. This occurred in spite of sales decreasing factors such as lowering cellular call rates up to 7.3% at the beginning of 2003, and reducing Calling Number Identification Service (Value-added service) rates up to 50%, in October 2003. Furthermore, the number of cellular subscribers in 2003 reached 18.31 million, an increase of 1.09 million over the 17.22 million recorded in 2002. These were some of the important factors that explain how remarkable these 2003 business results really were.
In addition, due to the increase in multimedia content usage, and expansion of CDMA2000 1X color screen handset distribution, the sales of wireless Internet service skyrocketed to 1.32 trillion won, an 81% increase over the 588.80 billion won recorded in the year 2002. The increased amount of wireless Internet sales (588.80 billion won) represented 66% of the increase in total sales of 886.20 billion won. This demonstrates that the wireless Internet service business has solidified its position as a growth engine for the company’s entire business sector.
The main reason for the increase in SK Telecom’s net income in 2003 was that the reduction in marketing expense through the company’s ’Clean Marketing’ approach significantly reduced the overall operating expense. Moreover, non-operating income in 2003 decreased by 159.2 billion won from the non-operating income in 2002.
An SK Telecom official also revealed that sales in the 4th quarter of 2003 came to 2.48 trillion won, a 3% increase over the same period of 2002. Net income recorded 433.20 billion won, decreasing 15% year on year, due to the increase in marketing expense heavily focused in the 4th quarter in preparation for mobile number portability system.
An SK Telecom official also revealed that sales in the 4th quarter of 2003 came to 2.48 trillion won, a 3% increase over the same period of 2002. Net income recorded 433.20 billion won, a decrease of 15% year on year. This decrease was due to the increase in marketing expense in preparation for the mobile number portability system which was heavily focused in the 4th quarter.
An SK Telecom official revealed that monthly average call traffic volume per user (Minutes of Usage) recorded 197 minutes, a 3% increase over the previous year. This occurred in spite of sales decreasing factors such as lowering cellular call rates up to 7.3% at the beginning of 2003, and reducing Calling Number Identification Service (Value-added service) rates up to 50%, in October 2003. Furthermore, the number of cellular subscribers in 2003 reached 18.31 million, an increase of 1.09 million over the 17.22 million recorded in 2002. These were some of the important factors that explain how remarkable these 2003 business results really were.
In addition, due to the increase in multimedia content usage, and expansion of CDMA2000 1X color screen handset distribution, the sales of wireless Internet service skyrocketed to 1.32 trillion won, an 81% increase over the 588.80 billion won recorded in the year 2002. The increased amount of wireless Internet sales (588.80 billion won) represented 66% of the increase in total sales of 886.20 billion won. This demonstrates that the wireless Internet service business has solidified its position as a growth engine for the company’s entire business sector.
The main reason for the increase in SK Telecom’s net income in 2003 was that the reduction in marketing expense through the company’s ’Clean Marketing’ approach significantly reduced the overall operating expense. Moreover, non-operating income in 2003 decreased by 159.2 billion won from the non-operating income in 2002.
An SK Telecom official also revealed that sales in the 4th quarter of 2003 came to 2.48 trillion won, a 3% increase over the same period of 2002. Net income recorded 433.20 billion won, decreasing 15% year on year, due to the increase in marketing expense heavily focused in the 4th quarter in preparation for mobile number portability system.
An SK Telecom official also revealed that sales in the 4th quarter of 2003 came to 2.48 trillion won, a 3% increase over the same period of 2002. Net income recorded 433.20 billion won, a decrease of 15% year on year. This decrease was due to the increase in marketing expense in preparation for the mobile number portability system which was heavily focused in the 4th quarter.