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Press Release
Net income of KRW510 billion was recorded on total sales of KRW2.41 trillion. Operating income came to KRW820 billion.
Net income and total sales increased 15% and 8% respectively, and operating income increased 14% over the 3rd quarter of 2002.
Sales of wireless Internet services in the 3rd quarter of 2003, increased by 75% year on year. This further proves SK Telecom’s wireless Internet services continuing rapid growth pattern.
On October 28th, SK Telecom announced that the company achieved a net income of KRW510 billion and total sales of KRW2.41 trillion for the 3rd quarter of 2003. In addition, operating income came to KRW820 billion.
SK Telecom’s total sales and net income for the 3rd quarter of this year increased 8% and 15% respectively over the KRW2.224 trillion in sales and KRW444 billion in net income recorded in the 3rd quarter of 2002. Operating income showed a 14% increase over the KRW722 billion recorded in the same period last year. Compared to the 2nd quarter of 2003, total sales and operating income increased 1% and KRW3 billion respectively, while net income decreased 7%.
SK Telecom officials revealed that the accumulated number of SK Telecom cellular subscribers as of September 30th, 2003, came to 18.019 million, up 162 thousand subscribers over the 2nd quarter of this year. Further, sales of ’Free Call Rate Packages’ and value-added services like ’Color Ring’increased markedly. Total sales of ’Free Call Rate Packages’ increased 25% over the 2nd quarter of 2003. These are the primary factors that explain the remarkable business results for the 3rd quarter of 2003.
In addition, wireless Internet sales recorded KRW338 billion, up 11% over the 2nd quarter of 2003, and up 75% over the 3rd quarter of last year. This shows that the SK Telecom wireless Internet area is enjoying continued growth in the market.
SK Telecom net income in the 3rd quarter decreased compared to the 2nd quarter of 2003. The main reason for this is that non-operating income in the 3rd quarter showed a relative increase due to temporary revenue recorded in the 2nd quarter of 2003 by reason of a KT stock dividend (KRW25.6 billion), and a value-added tax refund (KRW10.7 billion) related to Shinsegi Telecom’s handset discount sales.
An SK Telecom official also revealed that in spite of lowering call rates, sales in the cellular voice sector in the 3rd quarter of 2003 came to KRW1.44 trillion, 9% above the 3rd quarter of 2002. However, due to the increase of holidays such as Thanks-Giving Day and summer vacation in the 3rd quarter, it decreased 1% over the 2nd quarter of 2003.
The number of color handsets held by subscribers in the 3rd quarter was 9.21 million, an increase of 20% over the 2nd quarter of 2003. In addition, the number of 1X handset-held subscribers reached 13.47 million, 9% above the 2nd quarter of 2003. Thanks to these increases, the ARPU of the wireless Internet service recorded KRW6,288, a 9% increase over the 2nd quarter of 2003.
In this connection, sales of wireless Internet service in the 3rd quarter increased by 16% compared to the 14% recorded in the 2nd quarter of 2003, and 10% year on year. This further proves SK Telecom’s wireless Internet services such as June, and NATE, keep solidifying their positions as new growth engines for the company’s entire business sector.
In accordance with these outstanding business results, SK Telecom’s EBITDA margin, that shows its capability of cash generation, recorded 51% in the 3rd quarter, an increase of 1% from 50% in the 2nd quarter of 2003. This figure exceeded the company’s goal of a 48% EBITDA margin for this year.
SK Telecom’s total sales and net income for the 3rd quarter of this year increased 8% and 15% respectively over the KRW2.224 trillion in sales and KRW444 billion in net income recorded in the 3rd quarter of 2002. Operating income showed a 14% increase over the KRW722 billion recorded in the same period last year. Compared to the 2nd quarter of 2003, total sales and operating income increased 1% and KRW3 billion respectively, while net income decreased 7%.
SK Telecom officials revealed that the accumulated number of SK Telecom cellular subscribers as of September 30th, 2003, came to 18.019 million, up 162 thousand subscribers over the 2nd quarter of this year. Further, sales of ’Free Call Rate Packages’ and value-added services like ’Color Ring’increased markedly. Total sales of ’Free Call Rate Packages’ increased 25% over the 2nd quarter of 2003. These are the primary factors that explain the remarkable business results for the 3rd quarter of 2003.
In addition, wireless Internet sales recorded KRW338 billion, up 11% over the 2nd quarter of 2003, and up 75% over the 3rd quarter of last year. This shows that the SK Telecom wireless Internet area is enjoying continued growth in the market.
SK Telecom net income in the 3rd quarter decreased compared to the 2nd quarter of 2003. The main reason for this is that non-operating income in the 3rd quarter showed a relative increase due to temporary revenue recorded in the 2nd quarter of 2003 by reason of a KT stock dividend (KRW25.6 billion), and a value-added tax refund (KRW10.7 billion) related to Shinsegi Telecom’s handset discount sales.
An SK Telecom official also revealed that in spite of lowering call rates, sales in the cellular voice sector in the 3rd quarter of 2003 came to KRW1.44 trillion, 9% above the 3rd quarter of 2002. However, due to the increase of holidays such as Thanks-Giving Day and summer vacation in the 3rd quarter, it decreased 1% over the 2nd quarter of 2003.
The number of color handsets held by subscribers in the 3rd quarter was 9.21 million, an increase of 20% over the 2nd quarter of 2003. In addition, the number of 1X handset-held subscribers reached 13.47 million, 9% above the 2nd quarter of 2003. Thanks to these increases, the ARPU of the wireless Internet service recorded KRW6,288, a 9% increase over the 2nd quarter of 2003.
In this connection, sales of wireless Internet service in the 3rd quarter increased by 16% compared to the 14% recorded in the 2nd quarter of 2003, and 10% year on year. This further proves SK Telecom’s wireless Internet services such as June, and NATE, keep solidifying their positions as new growth engines for the company’s entire business sector.
In accordance with these outstanding business results, SK Telecom’s EBITDA margin, that shows its capability of cash generation, recorded 51% in the 3rd quarter, an increase of 1% from 50% in the 2nd quarter of 2003. This figure exceeded the company’s goal of a 48% EBITDA margin for this year.