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Press Release
Net income comes to 400 billion won on total sales of 1.4 trillion won.
Total sales increase 2%, year-on-year, while net income is up 104% over the same period in 2000.
On May 4, SK Telecom announced its business results for the first quarter of 2001. The company?s total sales were up 2% year on year to reach 1.422 trillion won, while net income came to 400 billion won a whopping 104% jump from the same period a year ago.
Operating income registered a 102% year-on-year increase to reach 625 billion won, and ordinary income was up 88% to total 578 billion won.
SK Telecom has made a concerted effort to bring its share of the Korean market below 50% (as instructed by the Korean government when it allowed Shinsegi Telecomm to merge with SK Telecom). Though fewer, the subscribers to SK Telecom services are of the highest quality, and their average minutes of use (MOU) has increased, while marketing costs have declined over 70% year on year. These factors are attributed to SK Telecom?s achieving the highest quarterly results in its history.
At the same time, SK Telecom invested a total of 30 billion won (including 70 billion won in the existing cellular phone network and 100 billion won in the new cdma2000-1x network) during the first quarter of 2001. The company has earmarked a total of 1.5 trillion won for new investments this year.
Attachment 1:
Financial Performance Summary (in billions of won)
1st Qtr.’01 1st Qtr. ’00 Growth rate 4th Qtr. ’00
Total Sales 1,422 1,399 2% 1,440
Operating Expenses 797 1,090 -27% 940
Operating Income 625 309 102% 500
Non-operating Revenue 29 56 -48% 67
Non-operating Expenses 76 58 31% 175
Ordinary Income 578 307 88% 393
Pretax Income 578 284 104% 393
Corporate Tax 178 87 105% 125
Net Income 400 196 104% 267
EBITDA 814 450 81% 757
Attachment 2:
Subscribers & Network Usage
1st Qtr.’00 2nd Qtr.’00 3rd Qtr.’00 4th Qtr.’00 1st Qtr. ’01
Subscribers 11,268,000 11,552,000 11,072,000 10,934,00 10,990.000
Average MOU 143 153 155 170 188
*The subscriber numbers are the totals at the end of each quarter.
Operating income registered a 102% year-on-year increase to reach 625 billion won, and ordinary income was up 88% to total 578 billion won.
SK Telecom has made a concerted effort to bring its share of the Korean market below 50% (as instructed by the Korean government when it allowed Shinsegi Telecomm to merge with SK Telecom). Though fewer, the subscribers to SK Telecom services are of the highest quality, and their average minutes of use (MOU) has increased, while marketing costs have declined over 70% year on year. These factors are attributed to SK Telecom?s achieving the highest quarterly results in its history.
At the same time, SK Telecom invested a total of 30 billion won (including 70 billion won in the existing cellular phone network and 100 billion won in the new cdma2000-1x network) during the first quarter of 2001. The company has earmarked a total of 1.5 trillion won for new investments this year.
Attachment 1:
Financial Performance Summary (in billions of won)
1st Qtr.’01 1st Qtr. ’00 Growth rate 4th Qtr. ’00
Total Sales 1,422 1,399 2% 1,440
Operating Expenses 797 1,090 -27% 940
Operating Income 625 309 102% 500
Non-operating Revenue 29 56 -48% 67
Non-operating Expenses 76 58 31% 175
Ordinary Income 578 307 88% 393
Pretax Income 578 284 104% 393
Corporate Tax 178 87 105% 125
Net Income 400 196 104% 267
EBITDA 814 450 81% 757
Attachment 2:
Subscribers & Network Usage
1st Qtr.’00 2nd Qtr.’00 3rd Qtr.’00 4th Qtr.’00 1st Qtr. ’01
Subscribers 11,268,000 11,552,000 11,072,000 10,934,00 10,990.000
Average MOU 143 153 155 170 188
*The subscriber numbers are the totals at the end of each quarter.