[Concall] SKT "The 4th Telecom Operator Will Be Specified After June"

SK Telecom expects the government's plan regarding the selection of the 4th mobile carrier to be finalized after June.

On the 10th, Kwon Young-sang, head of SK Telecom's CR Strategy, said during the Q1 earnings conference call, "Currently, the government announced the plan to select a new operator in January this year, and the frequency allocation notice is scheduled for next month, June," adding, "Some companies will review it, but the exact situation is expected to be clarified after June."

Regarding the government's plan to promote the 4th mobile carrier, he withheld judgment, saying, "It is difficult for operators to express their stance on policy decisions and government initiatives."

The government is currently seeking a '4th mobile carrier' to break the monopoly in the telecommunications market. Although it has presented unprecedented conditions such as allocating one of the two 5G 28GHz bands, which were canceled last December, to a new operator and easing regulations, no company has actively stepped forward yet, making the selection process difficult.

Meanwhile, the existing telecom companies' performance continues to improve day by day. SKT recorded consolidated sales of KRW 4.3722 trillion and operating profit of KRW 494.8 billion in Q1 this year. These figures represent increases of 2.2% and 14.4%, respectively, compared to the same period last year. Net profit rose 37.3% year-on-year to KRW 302.5 billion.

Having posted strong results this quarter, SKT decided to maintain the annual dividend at least at last year's level and enhance shareholder value by repurchasing treasury shares. Kim Jin-won, SKT's Chief Financial Officer (CFO), said, "The dividend yield is approaching 7%, and with the stock being significantly undervalued, there is value in repurchasing treasury shares."

He added, "The timing of the (treasury share) repurchase is not yet decided," and explained, "There are dividend incomes from this year's subsidiary SK Broadband and investment company Hana Financial, and including the improved earnings, there are sufficient funds." CFO Kim also said, "We are considering the optimal timing by taking into account the stock market situation surrounding the stock price, overall management environment, and company cash flow."

Meanwhile, SKT views the recently launched mid-tier 5G plans as having a positive effect on user satisfaction and profitability. Kim Ji-hyung, head of SK Telecom's Integrated Marketing Strategy, said, "The three new 5G plans are expected to reduce customer burden and increase benefits, leading to higher satisfaction with 5G services and various positive effects."

Kim added, "Diversifying 5G plans can lead to better services and improved customer retention, but it is difficult to say whether the effects are immediately positive or negative; we need to observe the trend in the mid to long term."

CFO Kim also said, "In the context of entering the maturity phase of the 5G market, it is natural to have a diverse lineup to effectively attract subscribers."

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