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SK Telecom Co Ltd ADR SKM

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Morningstar’s Analysis

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SK Telecom Reports Solid Mobile Results but Noncore Slightly Underwhelming

Dan Baker Senior Equity Analyst

Analyst Note

| Dan Baker |

SK Telecom’s, or SKT's, second-quarter 2021 result was solid with year-on-year revenue growth of 4.7%, operating income growth of 10.8% and EPS growth of 85%. Revenue growth was broadly in line with full-year guidance of KRW 19.5 trillion, which implies 5% growth. Consolidation of t-broad in the second quarter this year, but not fully in the previous quarter, also helped operating profit growth. The net income growth was boosted by increased contributions from SK Hynix. SK Hynix--in which SKT has a 20.6% stake, which makes up around half of our SKT valuation--reported 20% revenue growth and 57% growth in net profit year on year.

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Company Profile

Business Description

SK Telecom is Korea's largest wireless telecom operator, with 29 million mobile customers. The firm also owns 75% of SK Broadband (formerly Hanaro Telecom), which has 6.5 million broadband customers and 8.7 million broadband TV customers. The firm owns stakes in various other operators in different countries and other businesses in Korea. SK Telecom's strategy is to continue dominating the Korean wireless market and to expand its influence elsewhere in Internet-related businesses.

Contact
SK T-Tower, 65, Eulji-ro, Jung-gu
Seoul, 04539, Korea, Republic of
T +82 261002114
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 41,097

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