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Press Release
The company achieved 4.046 trillion Korean won in total sales, and a net income of 900 billion won, which were increases of 13% and 48% respectively, over the same period in 2001.
Wireless Internet sales and average revenue per user (ARPU) increased 148% and 5% respectively.
On the 15th of July 2002, SK Telecom (www.sktelecom.com) announced that the company achieved a net income of 900 billion won and total sales of 4.046 trillion won for the first part of 2002. In addition, operating income came to 1.363 trillion won.
The company’s total sales increased 13% compared with 3.597 trillion won of total sales reached over the first half of 2001 and net income skyrocketed 48% over the 610 billion won of net income recorded over the same period of 2001. Moreover, operating income increased 20% over the 1.139 trillion won of operating income reached over the same period in 2001.
If SK Telecom had included the 13 day business performance of Shinsegi Telecom which was merged with SK Telecom on the 13th of January 2002, the company’s total sales would have come to 4.087 trillion won, increasing 14% from the same period of 2001, and net income would have reached 908 billion won, up 49%. In addition, operating income would have recorded 1.38 trillion won, a 21% increase.
In spite of lowering service usage rates up to 8.3% and interconnection fee up to 28%, which took place on the 1st of January 2002, the volume of wireless Internet service use and cellular voice call traffic increased. Therefore, monthly average revenue per user (ARPU, interconnection fee is not included) increased 5% over the first half of 2001.
Furthermore, monthly average call traffic volume per user (MOU) increased about 16 minutes from 182 minutes in the 1st quarter of this year to 198 minutes in the 2nd quarter. These are the important factors that explain the increase in the company’s business performance for the first half of 2002.
In particular, the total depreciation cost of SK Telecom and Shinsegi Telecom for the first half of 2001 before the merger was 769.9 billion won. After the merger, the depreciation cost came to 623.9 billion won, a reduction of 146 billion. The synergistic effect from the merger has become another reason for the improved business performance of SK Telecom.
Thanks to a constantly increasing supply of terminals capable of wireless Internet service, and an increase in the service use volume per user, wireless Internet service sales skyrocketed to 294.4 billion won, up 148% over the same period a year ago.
Due to the company’s continued implementation of a policy of qualitative growth through securing high quality customers, the average service cancellation ratio in the 2nd quarter of 2002 was 1.14%, decreasing from 1.49% in the 1st quarter of 2002. Furthermore, the number of CDMA 2000 1X service subscribers greatly increased, reaching 6.7 million as of the end of June 2002.
The company’s total sales increased 13% compared with 3.597 trillion won of total sales reached over the first half of 2001 and net income skyrocketed 48% over the 610 billion won of net income recorded over the same period of 2001. Moreover, operating income increased 20% over the 1.139 trillion won of operating income reached over the same period in 2001.
If SK Telecom had included the 13 day business performance of Shinsegi Telecom which was merged with SK Telecom on the 13th of January 2002, the company’s total sales would have come to 4.087 trillion won, increasing 14% from the same period of 2001, and net income would have reached 908 billion won, up 49%. In addition, operating income would have recorded 1.38 trillion won, a 21% increase.
In spite of lowering service usage rates up to 8.3% and interconnection fee up to 28%, which took place on the 1st of January 2002, the volume of wireless Internet service use and cellular voice call traffic increased. Therefore, monthly average revenue per user (ARPU, interconnection fee is not included) increased 5% over the first half of 2001.
Furthermore, monthly average call traffic volume per user (MOU) increased about 16 minutes from 182 minutes in the 1st quarter of this year to 198 minutes in the 2nd quarter. These are the important factors that explain the increase in the company’s business performance for the first half of 2002.
In particular, the total depreciation cost of SK Telecom and Shinsegi Telecom for the first half of 2001 before the merger was 769.9 billion won. After the merger, the depreciation cost came to 623.9 billion won, a reduction of 146 billion. The synergistic effect from the merger has become another reason for the improved business performance of SK Telecom.
Thanks to a constantly increasing supply of terminals capable of wireless Internet service, and an increase in the service use volume per user, wireless Internet service sales skyrocketed to 294.4 billion won, up 148% over the same period a year ago.
Due to the company’s continued implementation of a policy of qualitative growth through securing high quality customers, the average service cancellation ratio in the 2nd quarter of 2002 was 1.14%, decreasing from 1.49% in the 1st quarter of 2002. Furthermore, the number of CDMA 2000 1X service subscribers greatly increased, reaching 6.7 million as of the end of June 2002.