SKM - Earnings call transcript Q4 2020

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Operator

Good afternoon.

First of all, thank you all for joining this conference call. And now we will begin the conference call by the fiscal year 2020 fourth quarter earnings results by SK Telecom. This conference will start with the presentation followed by a divisional Q&A session. [Operator Instructions]. commence by shall Telecom. we now the SK presentation And

Unidentified Company Representative

the [ph], Center Jeong IR Center conference Good future earnings management of by and am Corporate strategic Young year Choi for call on Head fiscal results consist plans Today's afternoon. I of the Telecom. Yoon, Hwan CFO of X; XXXX Head the SK Planning will direction and presentation Poong plans and at and the X, MNO Head Hyung-il Corporate followed Today, by strategic ICT of Q&A X; and provided Head achievements a be of Hyung-il and Yoon, Ha, discuss will business the of for that X, Center by will new session. Young division. Head Ha, Poong Center of Corporate Corporate

from executives the us with relevant understanding. division deepen here have also to your business We

I Before macroeconomic on depending remind to to all you the subject are forward-looking want we begin, statements change and situation. market that

present me CFO. Let our now

Poong Young Yoon

Yoon, is Telecom. CFO Poong SKT afternoon. Good Young This of

XXXX. for of in discuss first media, up A me Let built resulting security KRW well-diversified a XX,XXX.X enabled adaptation growth nonface-to-face ICT thus XXXX all around X% in with year the commerce. for environment, business billion, year-on-year. quick portfolio quarterly earnings divisions highlights fiscal year connectivity recorded hyper sustained fiscal business Consolidated consolidated and revenue MNO,

revenue also to XX.X% up ICT the income Net MNO's income contribution not XX% MNO through as Hynix. a to we KRW contribute of operating equity from to points billion, turnaround recorded income ICT by that operating did X,XXX.X another The but thanks percentage income. recorded year. record-high to to began yet last excluding revenue year-on-year, XX.X% SK income and As due earnings, media the businesses Consolidated only businesses result, method improvement year-on-year and operating new increased of we this XX year operating is indicated as up commerce. income new year-on-year,

but turnaround usage negative an the for MNO X.X% XG to had revenue revenue each achieved roaming direction and now Decline billion. data grew MNO operating division. billion, up subscriber X.X% XX,XXX.X year-on-year income Let year-on-year. X,XXX.X we business pandemic record and Nonconsolidated XXXX achievements annual discuss increase. due recorded a KRW strategic on major in to for impact, KRW based me revenue growth

marketing share costs backed While MNO and XG X.XX and and of XG reach depreciation operating through as XXXX. a we is revenue well. led amortization and innovation of to The In million to count stands growth, reasonable turnaround end position #X environment. expense to leadership by of as maintained increased, cater operation XG at was income market the our as non-face-to-face increased the XXXX, reconfirmed million expansion, by market expected subscriber distribution end X to business the which in XXXX,

new maintaining base MNO company an business services the Coloring, service V cloud mobile lines been with in to various SK of only subscription offered not smartphones. customers beyond plan for products subscription subscriber Korea. introduce expanding. and continue stable on and we trend. FLO, bases everyone the to We year, This be services subscriber the have whose into MNO seamless based AI These go will but wavve, subscription We games products boundaries increase while Telecom innovation will market to to and will grow platform-based to

easy In and accessibility the an subscription platform addition, will create with we service AI-based restructure programs. membership

service this and opportunity to to year, do goal make and the preparations implement company necessary a direction new scope for plans best the all making subscription we our is an MNO this business of expand business. these the of to because will are MNO We

KRW billion. X,XXX.X Broadband's Moving media. SK on recorded to consolidated revenue

Security KRW XX.X% higher by subscriber for by to the strategic to billion. in income X,XXX.X volume business XX.X% operating year-on-year, marketing KRW intensified expansions. XX it rose contactless Operating increased we business IPTV posting With year-on-year XXX.X XXX.X billion year-on-year. the recording environment to billion, by t-broad XXX.X revenue, Thanks record recorded XX.X% growth, recorded and KRW drives. merger high revenue core XX.X% GMV recorded of KRW up income year-on-year, was CMS KRW competition contactless billion, Operating the thanks to and growth and due new when achieved consecutive increased a market. commerce the greater growth solutions sound billion, to businesses surplus income information the Commerce by recorded and reasons as down XXXX years. related business COVID-XX, X With new year revenue despite and home, year-on-year. and related margin X.X% driven revenue. security such parking such as business in

to We based year. competitiveness commerce will our the strengthen last of on business efforts make experience

X, discuss Hyung-il new will for Center achievements Head the Ha, of direction strategic and ICT the businesses. Corporate Next,

Hyung-il Ha

I am for Hyung-il Allow of Head to Center new plans business the division. Corporate X. and ICT Ha, discuss me the achievements

Last of record-high the business. media Thanks have and was we based achieved income. growth, IPTV year, the XXXX, Broadband revenue -- we million which the to effect X.XX the secured and First, merger pay-tv SK in and successfully. operating completed X.X on merger subscribers subscriber of t-broad

business continue expansion XXXX. business will this in and with high-growth We on growth trend through media BXB

revenue Caps will At time annual trillion information Infosec in the surpass merged market and KRW Next acquisition the we Caps' and XXX infrastructure. In years, XXXX, to the merge the merger security completed ADT security market SK and by be the SK in billion. accelerate XXXX. of year. We're After lead combining that Infosec this business. SK of decided X.X year, of to AI, security Caps lead the to X around double November service platform KRW revenue Telecom's is entity CMS to integrated last was ADT will the growth, determined ADT we of and QX security and XG expect

growing a in growth of of more a to than to commerce more growth customer XXST positive on Moving XX% X-digit and achieved GMV marketing, achieved capabilities. with co-marketing Stoa growth base sourcing thanks back operating on as business. the income. and saw expanded GMV such product of It than GMV, sellers providing recorded strategic virtuous benefits point SKT cycle to and XX% consumers. a in

platform. retail emerge hub Going a forward, XXST will global as

we in will As business cooperate allow Amazon announced customers year, to to November Amazon for buy innovation was XXST. e-commerce products through with last

touch T Let last including mobility, me Launched Mobility a in Mobility which a plans Uber December Map T more $XX car will taxi. and e-hailing services, than grow JV for establish that sharing a fifth Map million venture $XXX Uber wide and in joint year, Map to Telecom. rentals, around division become and an in has in taxi service car April. the million Mobility-as-a-Service SK business the T will covers range Mobility. invest upon of of now provider public transit, into all-in-one

of net Lastly, number business is titles, let by of of game an IPO and in growth and large profitable preparing to for this users ONE me on the became move terms Backed year. virtuous continued XX quarters, Store, cycle year. income a GMV which consecutive last growing for

the it We year will for IPO to the growth the for back now the XXXX. process. proceed will this CFO, will maintain revenue who and hand you. trend I ONE Store with discuss Thank guidance

Poong Young Yoon

the Dividend interim out be including Board after KRW approval will March XX,XXX, for of AGM. The XXXX dividend. at decided has XXXX confirmed by amount KRW the the paid the been

year-on-year plan. consolidated to year's MNO the of me based is KRW the and according Let management new expected present both revenue growth to now guidance on Annual you up businesses. ICT be XX,XXX to this solid X% billion,

innovation competitive portfolio best our despite constant strive these meaningful our been interest and the analysts. In revenue pandemic portfolio, by the ask and will Thank results based income have driven the to operating XXXX, and on greater We for we to corporate and exceed constant SK with that innovation for competitive subsidiary that growth. situation, highest-ever and business support do to environment. you. remain We technology-based value. growth, Telecom investors on further achievements of carry AI us AI will unprecedented and business business guidance. from a our in We the the This out achieved first IPO and allowed in openness, believe services nonface-to-face continued order and year, create advance

Operator

[Operator Instructions].

The Ahn will & first be by Securities. NH Jae-min from provided question Investment

Ahn Jae-min

questions. two have I

months. question in first recent is, The

You a talks structure there possible governance there some has has about been lot been can change, and legislative well. as see that of corporate changes

within likelihood topic? price XG us plans. The been with meaningful manner. launching Recently, this color change in about is Korea the telcos X lower-end Can question price is competitive on year? second you a of some any provide what corporate have governance So plans this in

So what is the your price plan on impact lower-end of earnings? this

Unidentified Company Representative

Mr. Ahn, thank you for your question.

exchanging open Based possibilities, MNO value business, opinions have possible shareholders. the on not we in maximizing have but your me in change. Let been by ultimate according recognized the being corporate to the also question of goal shareholder governance been stakeholders, and we all new having our with address businesses their various market, only to legislative value including regarding financial change the

businesses. governance any specific We including of off change, various of corporate not options have the taking made regarding decisions some

that to will However, and assumption mention shareholders. interest we value, the be the with of maximize opt in will options we for have line that will corporate be basic the to

specific with we them will we decisions, as soon have market. communicate some As the

reporting ARPU down the an the about in to your scheme the Let new the case selective tariff the existing price Therefore, regarding regime, year, lower-end have is Compared consumption earnings. option, and potential increase has is now a we price to and a of the online trends, plan new slightly. price than discount the price seen as nonface-to-face plan. been the question This this of interest plan existing under plan, go lot which plan. scheme. new new XX% our the me move there have to on plan lower first likely new we this in January In of tariff is impact as announcing price announced on online-only

we pricing expect well. growth the new with available growth in However, revenue reasonable as and market, subscriber more the

Operator

Hoi next presented will Kim by Daishin be Jae The from question Securities.

Kim Hoi Jae

two have I questions.

question related plan. your dividend The first is to

starting XXXX, that the linked year us interim situation SK from to dividend of communicated and Hynix to subsidiaries. be You will the dividend the the

The But DPS be the X,XXX. the business. of will performance overall your linked enjoy And to currently, the this to market upside, of you KRW be for forward? competition And range regarding MNO performance in is that landscape. will maintain that? that some what will the or dividend the question second maintained be level order MNO Any what the expect. will guidelines year-end So we for you it for of is as to said dividend, level going

current launched, forward? subsidy the Galaxy what were new what going increase talks the last in for of about situation the is marketing is December for year, iPhone's some And there launch outlook device. And this after was situation? XX your marketing potential Before

Unidentified Company Representative

Kim, you questions. your Mr. for Thank

announced there And will maintained, make are slightly. dividend the SK we our at KRW will do dividends, policy X,XXX. our dividend direction, dividend by in Board. MNO be policy expectations be will by factors, the linking Let In me to year we market stance first year-end give as we dividend you XXXX. these will consideration at in the decision we market. Hynix subsidiary year that and about to is maintained This other understand also performance. upside comments has it with policy Last XXXX, Hynix of communicate stable this our be but mentioned flexible for for and for it fiscal interim once as dividend our performances. decided was that The we on has year, especially increased dividends been announced, from the we discussions dividend manner And made, more basic will linking been a interim

revenue including accelerating of of MNO our by do businesses, to strengthening business. efficiency our various and of will dividend best We competitiveness growth capability operational our increase improvement payout

maximize that, effective to more policy various have them a Once options time and make we efficient measures value. with lot of market. we been the will to have shareholder shareholder our considering in spending addition some to plans, specific we order return In and communicate

It answer natural question a the now market that up temporarily go phenomenon intensifying marketing. terms is of whenever new subsidies devices competition the me regarding Let in launched. in are quite your

continuing, rest market the year. overall, trend -- trend to of the market stable for we expect market is and However, the continue this stable

Thank competition. will than lead healthy competition continue rather Telecom on SK services price forward, or Going based you. cost to differentiated

Operator

presented Lee Hanwha by next will question Soonhak The Securities. Investment & be from

Lee Soonhak

you to questions. like ask two would I

company, question planning your transform to your service in quite first this The subscription that is presentation, you is MNO new that business to mentioned into you're AI-based and an us.

to all-in-one increase year, expected you specific last question an target, or Please company. targets? Especially can business. in more of In the related and Map And terms your that? revenue with your into us. the are that them Mobility-as-a-Service T there share subscriber mentioned elaborate So grow you any Mobility second is launched, will was Mobility is this you on December

was entity this current And for situation the what's So company? expectation launched? this what after is your

Poong Young Yoon

Lee, Mr. you, question. Thank for your

going will new platform-based. then by cover for Ha this, on AI it and I'm mobility-related business would I XXXX, the into like MNO to question our In to Mr. growth an we hand question. over to story a your Regarding business, create MNO transforming

revenue So we by also currently beyond to would these XXXX a with of in education, a membership go impact our to building as tool year customers. subscription a services the plans, limits we collaborate program been huge target this billion. revamp very the travel in and that players rentals strong so of infrastructure, marketing, the and our the on marketing various areas has In that can of like MNO company. used service company-related that XX we target service to we business XXX and a preparing users of product are on Based have process million order subscription and the to subscription we're will KRW out F&B, new carry as telecom offer

Hyung-il Ha

am Corporate answer So X, the off our the let from split Ha me strategy. -- and your I Center after regarding Map performance T Hyung-il of Mobility the question

T year, last Telecom December mobility division SK became in business Mobility. the Map mentioned, we As of

expect platform, and various investment to terms we service now, right April. We're services to preparation, established X trillion. and services, Korea's the service T in is grow manner. raising sailing smooth a the planning launch Uber mobility target and by planning launch core financial service Map, official also Mobility to XXXX X.X areas corporate utilizing in taxi we're the T In including and joint KRW with of happening designated Mobility-as-a-Service largest by be for value driver its gradual venture is and Map

new will core insurance, a is advertising, will areas subscription customers. life which and of and we platform, first also be existing membership usage-based Map businesses other parking expanded, of which is types BXC launch They such T The services. for include

service growing BXB auto, to that for area, which going and joint driver services. launch the ecosystem collaboration the OEMs Map as it's with Map mediate. including is services the we platform by Uber for designated For mobility going around T are and expand T to business, taxi in to business, as about mobile planning services we other will are to digital demand And car are to be for business And centered well vehicles venture. on we many differentiated service, embedded we navigation infotainment planning for mobility offering the offer

for and Thank we're be where transportation Finally, preparing various Mobility-as-a-Service, can means you. utilized service. bundled in one

Operator

KB The Kim will from question next be by Joonsop presented Securities.

Kim Joonsop

would to two one commerce. regarding I other is questions, and media the regarding is like ask one

that wavve for mentioned OTT strategies related the is Disney and any commerce. are of interest second regarding services. in question lot a there with your companies? other collaborating there is business, And You And to

XXST mentioned update you with as grow are partnership can since that November? on a -- retail You to platform. planning health us your You Amazon global you

target or your near strategy this part this specific of user for happens GMV the is is your future, overall the business? target? if what in So What

Unidentified Company Representative

Kim, questions. for your you, Mr. Thank

as On Cheat was on expansion, for of of as territorial potential drama comment IPTV in XXXX, broadcast SK well terms regarding media But a any TV there wavve for names Penthouse, Telecom, Delayed that including was strategy me cannot let to quarter competitiveness business the Justice partnership. popularity Me, OTT, please fourth open the disclose content we In understand specific we of Can, in the You and network. wavve's in and series original your hyper do options are question various line which of the market. If maintain for First, collaboration. to on platform

million and continuing. in been reach growth XXXX, subscriber we has were subscriber number the result, rate X able a the As of annual pay-tv to

by target various content and So in considering we're original of improve our options X wavve million the to pay-tv smooth sailing achieving subscribers Currently, investment through partnerships. global XXXX. is expansion competitiveness

the we expect purchase, volume so differentiated smooth area, domestic Based collaboration which offer KRW products of that for that Let hard with other regarding to our with in also overseas. -- And are of Amazon. Amazon, the will And to is me sellers at domestic and scale we ICT of services preparation also preparations with this of Amazon trillion XXST. Currently, in to to with will together the in as increase for unique but contract around cross-border continue cross-border of Amazon volume. expect not collaboration will domestic are is This on we possible. provide create allow work and can between XXST cooperation at shopping question cross-border any only customers X benefits When is to offer we the increase shopping. an to cooperation to Amazon, SK sell in the to the regarding customers. domestic on currently XXST, your the size not cases. lead purchase can with making to direct it's soon experiences Amazon customers move purchase able increase buying in Amazon XXST Amazon process we their so but will and further constraints that of so expected as increase the customers with making purchase, products of Because collaborate commerce details. with now And synergies. Telecom XXST only a Amazon, areas, this products we to also traffic also not XXST

Thank So details will communicate please right, when market. with more understand. the you. we But do time is

Operator

Yoo question will last Lynch. be by Jay presented Our from Merrill

Yoo Jay

questions. two have I

outlook XXXX, quite on the to overall mentioned second that some related CapEx. in is you us MNO have presentation CapEx question the In declined substantially. guidance the provide executed your revenue? for breakdowns And your terms in first Can of revenue. XXXX The is question with of you

CapEx XXXX? is deployment the what of your for outlook for So

Unidentified Company Representative

much very question. you your thank Yoo, Mr.

let answer subscriber First, regarding the question revenue and outlook. me your MNO

Of wireless is the for X% going to to side, subscriber XXXX, pace but course, year-on-year. that we have revenue of X% forward, going by expect see growth to the mobile we increase

Regarding sure the to manage and your to to question on XXXX, our efficiently. outlook, level the of Thank it's similar make be going we will CapEx CapEx you.

Unidentified Company Representative

for Thank this you very call. us joining for conference much

please you. any team. the IR have you Thank further If questions, contact

end this Thank of fiscal year for is SK XXXX the you. So Telecom. call for conference

SK Telecom Co.,Ltd (SKM) 3 Feb 212020 Q4 Earnings call transcript