[Concall Summary] SKT Tightens Grip on 5G Subscriber Growth... Launching Mid-to-Low Priced Plans Within the Year

Preparing Mid-Range 5G Plans... Targeting 9 Million 5G Subscribers Next Year
One Store Plans Sequential Subsidiary Listings in Second Half of Next Year

[Image source=Yonhap News]

[Asia Economy Reporter Han Jinju] SK Telecom is accelerating its efforts to secure 6 million 5G subscribers within the year. The strategy is to boost subscriber growth by launching mid-range 5G plans as early as this year.

On the 5th, SK Telecom announced consolidated Q3 sales of 4.7308 trillion KRW and operating profit of 361.5 billion KRW. Compared to the same period last year, sales increased by 3.72% and operating profit by 19.68%. Net profit reached 395.7 billion KRW, up 44.18%. Sales by business division were ▲MNO 2.9406 trillion KRW ▲Media 966.8 billion KRW ▲Security 355.3 billion KRW ▲Commerce 206.6 billion KRW.

During the earnings conference call held that day, CFO Yoon Poong-young said, "5G subscribers increased by 920,000 in Q3, reaching 4.26 million as of the end of September," adding, "We are expanding the coverage and strengthening untact channels, providing various 5G experiences to increase the number of subscribers every quarter."

With the expansion of 5G coverage and the launch of 5G iPhones, SKT’s 5G subscriber growth is also accelerating. SKT aims to secure 5 to 6 million 5G subscribers this year and 9 million by the end of next year.

CFO Yoon explained, "In 2021, we plan to enhance service completeness including devices, networks, and services, and if a customer-friendly 5G plan is launched by the end of this year or early next year, the speed of 5G subscriber growth will accelerate further," adding, "By the end of 2021, 5G subscribers will reach 9 million."

The government’s requested mid-range 5G plans are also expected to be launched as early as this year to tighten the reins on expanding 5G subscribers.

CFO Yoon said, "Considering the competitive environment and subscriber trends, we are reviewing the restructuring of 5G plans in a customer-friendly direction and plan to launch them by the end of this year or early next year," adding, "When the new plans are launched, the expansion of 5G subscribers will accelerate, and although the average revenue per user (ARPU) may decrease, the activation of 5G subscriptions will have a positive impact on wireless revenue growth."

SK Telecom Headquarters

SKT has built a dedicated enterprise network to expand its 5G-based B2B business and is expanding cloud and 5G business opportunities through cooperation with Amazon Web Services (AWS) and others.

Han Myung-jin, head of the MNO Marketing Group, said, "Cloud services based on 5G MEC are scheduled for commercialization by the end of the year after pilot services, and we are discovering B2B solutions to improve productivity with leading companies in various industries," adding, "We have built dedicated 5G networks for companies such as SK Hynix, POSCO, and Samsung Electronics, and are developing smart factory solutions."

Starting with One Store, subsidiaries that have been showing favorable performance also plan to go public sequentially.

Ha Hyung-il, head of SK Telecom Corporate Center 2, said, "One Store selected an IPO underwriter last September, started due diligence in October, and is expected to apply for preliminary listing review in the first half of next year, aiming for a listing as early as the second half of 2021," adding, "In the future, considering the performance of each subsidiary and market conditions, we will prepare IPOs for ADT Caps, Wavve, 11st, SK Broadband, and in the mid-to-long term, T Map Mobility, so that their value is recognized in the financial market."

This content was produced with the assistance of AI translation services.