Seoul, Korea, 28 January 2010 – SK Telecom (NYSE:SKM) announced its earnings for the year 2009: revenue of KRW 12.101 trillion, operating income of KRW 2.179 trillion and net income of KRW 1.288 trillion.

The revenues increased by 3.7% compared to the previous year to record KRW 12.101 trillion backed by increase in the number of subscribers and wireless Internet growth despite expanded discount plans and tariff cuts. 

Operating income stood at KRW 2.179 trillion, climbing 5.8% compared to 2008, resulting from revenue growth and other cost cutting efforts. Net income recorded KRW 1.288 trillion, representing a 0.8% rise compared to the previous year.

Although somewhat affected by intensified market competition caused by the merger of KT and KTF, EBITDA in 2009 marked KRW 4.209 trillion, up by 5.1% compared to the previous year as marketing expenses showed a gradual decline in the second half.

Furthermore, the CapEx for 2009 totaled KRW 1.769 trillion as the company continued to make necessary investments including those for WCDMA network upgrade and Wibro network expansion.

The 2009 cumulative number of subscribers rose by 5.3% compared to 2008 to reach 24.25 million and average revenue per user (ARPU) edged down by 1.3% to KRW 42,469 with the expansion of various discount plans.

For the fourth quarter of 2009, the revenues increased by 3.1% quarter-on-quarter to mark KRW 3.1 trillion. Also compared to the same quarter last year, the operating income went down by 5.5% to stand at KRW 443.1 billion, while EBITDA increased by 3.4% to mark KRW 1.095 trillion.

Cho Ki-Haeng, president of SK Telecom’s Global Management Service said, "In 2010 SK Telecom will further strengthen its leading position in the wireless Internet market by securing smartphone leadership, innovating content use and development environment, investing in data networks, and opening up and sharing networks. At the same time, the company will continue its efforts to secure future growth by actively promoting IPE business, its new growth engine."

President Cho also stressed that, "SK Telecom will refrain from cut-throat competition and plans to maintain market leadership by strengthening its core competitiveness, which will in turn enable the company to retain subscribers and secure more heavy-users."