1934 Act Registration No. 1-14418
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF JANUARY 2003
-------------------
SK TELECOM CO., LTD.
(Translation of registrant's name into English)
99, Seorin-dong
Jongro-gu
Seoul, Korea
(Address of principal executive offices)
-------------------
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F[X] Form 40-F -
(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes - No [X]
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):82- .)
================================================================================
JANUARY 22, 2003
RESULTS FOR THE YEAR
ENDED DECEMBER 31, 2002
*THE INFORMATION CONTAINED HEREIN IS BASED ON KOREA GAAP.
IT IS UNAUDITED AND NON-CONSOLIDATED.
(SK TELECOM LOGO)
--------------------------------------------------------------------------------
SEOUL, KOREA, JANUARY 22, 2003 - SK TELECOM CO., LTD. (KSE: 17670, NYSE: SKM)
("SKT" OR "THE COMPANY"), THE LEADING WIRELESS TELECOMMUNICATIONS COMPANY IN
KOREA, TODAY ANNOUNCED THE RESULTS OF ITS OPERATIONS FOR THE YEAR ENDED DECEMBER
30, 2002.
--------------------------------------------------------------------------------
This material contains forward-looking statements with respect to the financial
condition, results of operations and business of SK Telecom and plans and
objectives of the management of SK Telecom. Statements that are not historical
facts, including statements about SK Telecom's beliefs and expectations, are
forward-looking statements. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results or performance of SK Telecom to be materially different from any future
results or performance expressed or implied by such forward-looking statements.
SK Telecom does not make any representation or warranty, expressed or implied,
as to the accuracy or completeness of the information contained in this
management presentation, and nothing contained herein is, or shall be relied
upon as, a promise or representation, whether as to the past or the future. Such
forward-looking statements were based on current plans, estimates and
projections of SK Telecom and the political and economic environment in which SK
Telecom will operate in the future, and therefore you should not place undue
reliance on them. Forward-looking statements speak only as of the date they are
made, and SK Telecom understates no obligation to update publicly any of them in
light of new information or future events. Additional information concerning
these and other risk factors are contained in SK Telecom's latest annual report
on Form 20-F and in SK Telecom's other filings with The U.S. Securities and
Exchange Commission (SEC).
2
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS: FY 2002
--------------------------------------------------------------------------------
- REVENUE: KRW 8,635bn, 14% increase compared with the last year
- OPERATING INCOME: KRW 2,673bn, 15% increase compared with the last year
- NET INCOME: KRW 1,512bn, 29% increase compared with the last year
- EBITDA: KRW 4,087 bn
- EBITDA MARGIN: 47%
- MONTHLY ARPU: KRW 38,366, 5% increase compared with the last year
(excluding interconnection revenue)
--------------------------------------------------------------------------------
I/S SUMMARY
(KRW bn)
--------------------------------------------------------------------------------------------------------------------------------
2002 1) 2001 CHANGE 2001 CHANGE Q4 02 Q3 02 CHANGE
(SKT) (%) (MERGED) 2) (%) (%)
--------------------------------------------------------------------------------------------------------------------------------
REVENUE 8,635 6,227 39% 7,584 14% 2,366 2,224 5%
--------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES 5,962 4,023 48% 5,256 13% 1,784 1,501 19%
--------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME 2,673 2,204 21% 2,328 15% 582 722 (19%)
--------------------------------------------------------------------------------------------------------------------------------
Operating margin 31% 35% 30.7% 25% 33%
--------------------------------------------------------------------------------------------------------------------------------
NON-OPERATING INCOME 286 113 154% 176 63% 82 65 25%
--------------------------------------------------------------------------------------------------------------------------------
NON-OPERATING EXPENSES 777 555 40% 576 35% 424 149 185%
--------------------------------------------------------------------------------------------------------------------------------
ORDINARY INCOME 2,182 1,761 24% 1,928 13% 240 639 (63%)
--------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE TAXES 2,182 1,761 24% 1,928 13% 240 639 (62%)
--------------------------------------------------------------------------------------------------------------------------------
INCOME TAXES 670 621 8% 756 (11%) 76 195 (61%)
--------------------------------------------------------------------------------------------------------------------------------
NET INCOME 1,512 1,140 33% 1,172 29% 164 444 (63%)
--------------------------------------------------------------------------------------------------------------------------------
EBITDA 4,087 3,302 24% 4,001 2% 1,008 1,088 (7%)
--------------------------------------------------------------------------------------------------------------------------------
EBITDA margin 47% 53% 53% 42.6% 48.9%
--------------------------------------------------------------------------------------------------------------------------------
1) UNAUDITED FIGURES ASSUMING THE MERGER TAKING PLACE ON JANUARY 13, 2002
2) UNAUDITED FIGURES ASSUMING THE MERGER TAKING PLACE ON DECEMBER 31, 2000
3
I. DISCUSSION OF FINANCIAL RESULTS
A. REVENUES
(KRW mn)
-------------------------------------------------------------------------------------------------------------------
2002 2001 CHANGE 2001 CHANGE Q4 02 Q3 02 CHANGE
(SKT) (%) (MERGED) (%) (%)
-------------------------------------------------------------------------------------------------------------------
CELLULAR 7,542,308 5,056,065 49% 6,241,748 21% 2,083,720 1,943,963 7%
-------------------------------------------------------------------------------------------------------------------
INTERCONNECTION 1,092,301 1,171,062 (7%) 1,342,422 (19%) 282,479 279,679 1%
-------------------------------------------------------------------------------------------------------------------
TOTAL 8,634,610 6,227,127 39% 7,584,170 14% 2,366,199 2,223,641 6%
-------------------------------------------------------------------------------------------------------------------
The total revenue in 2002 increased by 39% (SKT alone) and 14% (merged basis) to
KRW 8,634,610 mn from the last year.
1. CELLULAR REVENUE
(KRW mn)
----------------------------------------------------------------------------------------------------------------------------------
2002 2001 CHANGE 2001 CHANGE Q4 02 Q3 02 CHANGE
(SKT) (%) (MERGED) (%) (%)
----------------------------------------------------------------------------------------------------------------------------------
SIGN-UP FEE 229,941 113,227 103% 146,712 57% 46,592 62,691 (26%)
----------------------------------------------------------------------------------------------------------------------------------
MONTHLY FEE 3,035,145 2,143,776 42% 2,729,283 10% 811,003 777,030 4%
----------------------------------------------------------------------------------------------------------------------------------
CALL CHARGE1) 3,064,907 2,290,701 34% 2,826,403 8% 848,432 801,999 6%
----------------------------------------------------------------------------------------------------------------------------------
VAS & OTHERS 479,559 249,655 92% 184,464 160% 126,995 109,366 16%
----------------------------------------------------------------------------------------------------------------------------------
VOICE SUBTOTAL 6,809,552 4,797,359 42% 5,886,861 16% 1,833,023 1,751,086 5%
----------------------------------------------------------------------------------------------------------------------------------
WIRELESS INTERNET (WI) 732,756 258,706 183% 296,755 147% 250,697 192,876 30%
----------------------------------------------------------------------------------------------------------------------------------
WI / CELLULAR 10% 5% 5% 12% 10%
----------------------------------------------------------------------------------------------------------------------------------
TOTAL 7,542,308 5,056,065 49% 6,241,748 21% 2,083,720 1,943,963 7%
----------------------------------------------------------------------------------------------------------------------------------
1) SALES DISCOUNT INCLUDED
Cellular voice revenue increased by 42%(SKT alone) and 16%(merged basis) from
the last year to KRW 6,809,552 mn.
Reasons for 16%(merged basis) increase in cellular voice revenue were:
1) 57% increase in sign-up fee from subscriber gross additions (2001:
3,198,914 - > 2002: 4,771,844 subs)
2) 10% increase in monthly fee and 8% increase in call charge from the
increase in average subscriber numbers (2001: 13,925,421 - > 2002:
16,382,434 subs)
Wireless Internet Sales increased by 183% (SKT alone) and 147% (merged basis) to
732,756 mn, representing 10% of total cellular revenue. It was due to the
increased number of wireless Internet enable handset holders during the year.
4
2. ARPU
(KRW)
------------------------------------------------------------------------------------------------------------------------------
2002 2001 CHANGE 2001 CHANGE Q4 02 Q3 02 CHANGE
(SKT) (%) (MERGED) (%) (%)
------------------------------------------------------------------------------------------------------------------------------
SIGN-UP FEE 1,170 853 37% 878 33% 907 1,250 (28%)
------------------------------------------------------------------------------------------------------------------------------
MONTHLY FEE 15,439 16,159 (5%) 16,333 (5%) 15,790 15,498 2%
------------------------------------------------------------------------------------------------------------------------------
CALL CHARGE 15,590 17,266 (10%) 16,914 (8%) 16,518 15,996 3%
------------------------------------------------------------------------------------------------------------------------------
WIRELESS INTERNET 3,727 1,950 91% 1,776 110% 4,881 3,847 27%
------------------------------------------------------------------------------------------------------------------------------
VAS 2,439 1,882 30% 1,104 121% 2,473 2,181 13%
------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL 38,366 38,110 1% 37,004 4% 40,569 38,773 5%
------------------------------------------------------------------------------------------------------------------------------
L-M INTERCON. 3,498 5,464 (36%) 5,429 (36%) 3,386 3,524 (4%)
------------------------------------------------------------------------------------------------------------------------------
M-M INTERCON. 2,058 3,363 (39%) 2,604 (21%) 2,114 2,054 (3%)
------------------------------------------------------------------------------------------------------------------------------
TOTAL 43,922 46,937 (6%) 45,038 (3%) 46,068 44,351 4%
------------------------------------------------------------------------------------------------------------------------------
The total ARPU including interconnection revenue decreased by 3% (merged basis)
compared with last year to KRW 43,922. This was due to a tariff cut and
interconnection rate adjustment applied from January 2002.
On the other hand, ARPU excluding interconnection revenue increased by 4%
(merged basis) to KRW 38,366 due to the increased usage in wireless Internet and
value-added service. The ARPU in the 4th Quarter increased by 4% from the
previous quarter to KRW 38,366
3. INTERCONNECTION REVENUE/COST
(KRW mn)
-------------------------------------------------------------------------------------------------------------------------------
2002 2001 CHANGE 2001 CHANGE Q4 02 Q3 02 CHANGE
(SKT) (%) (MERGED) (%) (%)
-------------------------------------------------------------------------------------------------------------------------------
INTERCONN. REV. 1,092,301 1,171,062 (7%) 1,342,422 (19%) 282,479 279,679 1%
-------------------------------------------------------------------------------------------------------------------------------
L-M 687,695 724,892 (5%) 907,272 (24%) 173,891 176,687 (2%)
-------------------------------------------------------------------------------------------------------------------------------
M-M 404,607 446,170 (9%) 435,150 (7%) 108,588 102,992 5%
-------------------------------------------------------------------------------------------------------------------------------
INTERCONN. EXP. 738,033 603,149 22% 620,861 19% 196,802 197,835 (1%)
-------------------------------------------------------------------------------------------------------------------------------
M-L (EXCL. USOB FUND) 156,540 131,616 19% 132,924 18% 41,699 51,294 (19%)
-------------------------------------------------------------------------------------------------------------------------------
USOB 87,439 (30,400) (8,000) 22,500 22,500
-------------------------------------------------------------------------------------------------------------------------------
M-M 494,054 501,933 (2%) 495,937 (0.4%) 132,603 124,042 7%
-------------------------------------------------------------------------------------------------------------------------------
Interconnection revenue decreased by 19% (merged basis) to KRW 1,092,301 mn and
interconnection expense increased by 19% (merged basis) to KRW 738,033 mn.
The related law regarding the payment in Universal Service Obligation (USOB)
fund was changed during the 3rd Quarter. According to the new arrangement, SKT
had to pay about KRW 90 bn for USOB fund in 2002. As of December 31, KRW 87.44
bn (12 month) was recognized in the book.
M-M interconnection rate decreased by 14% from KRW63.6 to KRW55 (= 53.5*0.7
+59*0.3: weighted average based on KTF and LGT subscriber numbers) but M-M
interconnection cost decreased by only 0.4% (merged basis) due to the increase
in outgoing call traffic.
5
B. OPERATING EXPENSES
(KRW mn)
-------------------------------------------------------------------------------------------------------------------------------
2002 2001 CHANGE 2001 CHANGE Q4 02 Q3 02 CHANGE
(SKT) (%) (MERGED) (%) (%)
-------------------------------------------------------------------------------------------------------------------------------
WAGES 304,608 219,803 39% 316,362 (4%) 59,807 81,086 (26%)
-------------------------------------------------------------------------------------------------------------------------------
MARKETING EXP. 1,630,892 906,058 80% 1,158,520 41% 533,536 388,168 37%
-------------------------------------------------------------------------------------------------------------------------------
INTERCONN. EXP. 738,033 603,149 22% 620,861 19% 196,802 197,835 (1%)
-------------------------------------------------------------------------------------------------------------------------------
DEPRECIATION 1,414,627 1,097,992 29% 1,673,027 (15%) 425,386 365,324 16%
-------------------------------------------------------------------------------------------------------------------------------
LEASED-LINE EXP. 266,804 215,569 24% 299,970 (11%) 70,193 59,686 18%
-------------------------------------------------------------------------------------------------------------------------------
OTHERS 1,606,797 980,389 64% 1,187,295 35% 498,316 409,327 22%
-------------------------------------------------------------------------------------------------------------------------------
TOTAL 5,961,761 4,022,959 48% 5,256,036 13% 1,784,041 1,501,427 19%
-------------------------------------------------------------------------------------------------------------------------------
Total operating expenses increased by 48% (SKT alone) and 13% (merged basis)
from last year to KRW 5,961,761 mn.
1. MARKETING EXPENSES
(KRW mn)
-------------------------------------------------------------------------------------------------------------------------------
2002 2001 CHANGE 2001 CHANGE Q4 02 Q3 02 CHANGE
(SKT) (%) (MERGED) (%) (%)
-------------------------------------------------------------------------------------------------------------------------------
CELLULAR COMMISSION 1,190,728 627,529 90% 817,530 46% 378,281 281,153 35%
-------------------------------------------------------------------------------------------------------------------------------
INITIAL COMM. 371,825 123,052 202% 168,669 120% 124,993 74,371 68%
-------------------------------------------------------------------------------------------------------------------------------
MONTHLY COMM. 433,002 286,513 51% 402,840 8% 128,440 103,466 24%
-------------------------------------------------------------------------------------------------------------------------------
RETENTION COMM. 385,900 217,964 77% 246,020 57% 124,847 103,317 21%
-------------------------------------------------------------------------------------------------------------------------------
OTHERS - 2,365 2,376 - -
-------------------------------------------------------------------------------------------------------------------------------
ADVERTISING 440,164 276,164 59% 338,614 30% 155,256 107,014 45%
-------------------------------------------------------------------------------------------------------------------------------
TOTAL 1,630,892 906,058 80% 1,158,520 41% 533,536 388,168 37%
-------------------------------------------------------------------------------------------------------------------------------
Marketing expenses increased by 80% (SKT alone) and 41% (merged basis) to KRW
1,630,892 mn.
Marketing expenses in 4th Quarter increased by 37% compared to the previous
quarter. This was due to our aggressive marketing activities to lock-in our
existing customers during the business suspension period and maintain our market
leadership in 2& 2.5G service as well as 3G service ("June") going forward.
6
C. NON-OPERATING INCOME/EXPENSES
(KRW mn)
--------------------------------------------------------------------------------------------------------------------------------
2002 2001 CHANGE 2001 CHANGE Q4 02 Q3 02 CHANGE
(SKT) (%) (MERGED) (%) (%)
--------------------------------------------------------------------------------------------------------------------------------
NON-OPERATING INCOME 286,001 112,563 154% 175,959 63% 81,964 65,486 25%
--------------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME 45,868 38,869 18% 50,628 (9%) 13,280 10,600 25%
--------------------------------------------------------------------------------------------------------------------------------
INCOMING FEE 103,066 53,058 94% 49,618 108% 24,173 31,477 (23%)
--------------------------------------------------------------------------------------------------------------------------------
FX GAIN 8,599 6,671 29% 6,889 25% 4,753 1,768 169%
--------------------------------------------------------------------------------------------------------------------------------
FX TRANSLATION GAIN 26,200 2,369 1,006% 2,369 1,006% 1,463 (7,105)
--------------------------------------------------------------------------------------------------------------------------------
OTHERS 102,268 11,596 782% 66,445 54% 38,294 28,746 33%
--------------------------------------------------------------------------------------------------------------------------------
NON-OPERATING EXP. 776,987 555,319 40% 576,392 35% 424,488 148,748 185%
--------------------------------------------------------------------------------------------------------------------------------
INTEREST EXP. 304,482 150,575 102% 271,202 12% 77,147 78,054 (1%)
--------------------------------------------------------------------------------------------------------------------------------
LOSS ON USING EQUITY METHOD - 177,048
--------------------------------------------------------------------------------------------------------------------------------
R&D CONTRIBUTION 58,555 23,000 155% 39,183 49% 14,680 15,575 (6%)
--------------------------------------------------------------------------------------------------------------------------------
DONATION 67,432 111,146 (39%) 124,743 (46%) 57,941 6,823 749%
--------------------------------------------------------------------------------------------------------------------------------
FX LOSS 1,789 783 128% 4,823 (63%) 897 694 29%
--------------------------------------------------------------------------------------------------------------------------------
FX TRANSLATION LOSS 4,231 12,366 (66%) 15,770 (73%) 901 (935)
--------------------------------------------------------------------------------------------------------------------------------
OTHERS 340,498 80,401 324% 120,670 182% 272,922 48,537 462%
--------------------------------------------------------------------------------------------------------------------------------
Non-Operating Income increased 154%(SKT alone)/63%(merged basis) to
KRW 286,001 mn.
Others in Non-Operating Income section include gain on equity method KRW 69 bn,
reimbursed allowance for bad debts KRW 9 bn, gain on disposal of fixed assets
KRW 9 bn and miscellaneous income KRW 11 bn, etc.
Non-Operating Expenses increased 40%(SKT alone)/35%(merged basis) to
KRW 776,987 mn.
The increase in Non-Operating Expenses was mainly due to the loss on disposal of
fixed assets which were the STI's unused equipment removed from current network
facilities. Total KRW 229,753 mn was recognized for the loss on disposal of
fixed assets during 2002.
Due to the share exchange transaction with KT, the loss on disposal of
marketable securities (KRW 48 bn) and the loss on investment securities
impairment (KRW 44.5 bn) were recognized during 2002.
7
D. BALANCE SHEET
(KRW mn)
---------------------------------------------------------------------------------------------------------------------
2002.12.31 2002.9.30 % 2002.6.30 2002.3.31
CHANGE
---------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS 2,894,392 2,894,013 0.1% 2,486,072 2,757,529
---------------------------------------------------------------------------------------------------------------------
CASH & MARKETABLE SECURITIES 476,059 445,661 6.8% 511,207 430,291
---------------------------------------------------------------------------------------------------------------------
INVESTMENT ASSETS 3,211,613 3,837,999 (16.3%) 3,954,544 2,190,441
---------------------------------------------------------------------------------------------------------------------
FIXED ASSETS 4,451,548 4,233,181 5.2% 4,105,068 4,011,519
---------------------------------------------------------------------------------------------------------------------
INTANGIBLE ASSETS 2,390,350 2,400,366 (0.4%) 2,438,802 2,446,556
---------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 12,947,904 13,365,558 (3.1)% 12,984,486 11,406,045
---------------------------------------------------------------------------------------------------------------------
CURRENT LIABILITIES 4,261,630 3,653,450 16.6% 3,914,957 2,976,394
---------------------------------------------------------------------------------------------------------------------
SHORT-TERM BORROWING 620,000 1,065,000 (41.8%) 1,515,000 715,000
---------------------------------------------------------------------------------------------------------------------
CURRENT PORTION OF LONG-TERM DEBT 920,745 541,139 32% 411,417 489,325
---------------------------------------------------------------------------------------------------------------------
LONG-TERM LIABILITIES 3,148,439 3,314,207 (5.0%) 3,274,887 2,879,791
---------------------------------------------------------------------------------------------------------------------
LONG-TERM DEBT 2,913,992 3,056,702 (4.7%) 3,070,892 2,691,594
---------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 7,410,069 6,967,657 6.3% 7,189,844 5,856,095
---------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 5,537,835 6,397,901 (13.4%) 5,794,642 5,549,950
---------------------------------------------------------------------------------------------------------------------
1. INVESTMENT ASSETS
Investment assets decreased 16.3% as of December 31, 2002, compared with
September 30, 2002, to KRW 3,211,613 mn. The main changes were attributed to
sales of KT shares (KRW 847 bn) and IT Fund Investment (KRW 190 bn).
On December 30, the sales of 15,454,659 KT shares (5% of SKT's holding in KT)
was executed per unit price of KRW 50,900. But the sales of KT shares was
recorded on book value of 847 bn KRW.
(847 bn won = 15,454,659 shares X KRW 54,800 per unit price as of September 30)
2. DEBT PROFILE
(KRW mn)
----------------------------------------------------------------------------------------------------------------------------------
2002.12.31 2002.9.30 % 2002.6.30 2002.3.31
CHANGE
----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM BORROWING 620,000 1,065,000 (42%) 1,515,000 715,000
----------------------------------------------------------------------------------------------------------------------------------
WON-DENOMINATED BANK LOAN - - 25,000 52,725
----------------------------------------------------------------------------------------------------------------------------------
DOMESTIC BOND 3,569,855 3,275,664 9% 3,129,758 2,737,120
----------------------------------------------------------------------------------------------------------------------------------
WON-DENOMINATED DEBT SUB-TOTAL 4,189,855 4,340,664 (3%) 4,669,758 3,504,845
----------------------------------------------------------------------------------------------------------------------------------
YANKEE BOND (US $1,000) 199,872 199,835 - 199,800 199,764
----------------------------------------------------------------------------------------------------------------------------------
$-DENOMINATED BANK LOAN (US $1,000) 20,731 63,060 (67%) 72,750 95,075
----------------------------------------------------------------------------------------------------------------------------------
$-DENOMINATED DEBT SUB-TOTAL
(US $1,000) 220,603 262,895 (16%) 272,549 294,839
----------------------------------------------------------------------------------------------------------------------------------
TOTAL DEBT 4,454,667 4,662,842 (4.5%) 4,997,308 3,895,920
(1$ = 1,200.4 WON) (1$ = 1,225.5 WON) (1$ = 1,201.8 WON) (1$ = 1,326.4 WON)
----------------------------------------------------------------------------------------------------------------------------------
Debt decreased 4.5 % to KRW 4,454,667mn as of December 31, 2002, compared with
September 30, 2002. The decrease is mainly due to repayment of short-term
borrowing.
As of December 31, 2002, debt to equity ratio was 80%.
8
3. SHAREHOLDERS' EQUITY
(KRW mn)
-------------------------------------------------------------------------------------------------------------------
2002.12.31 2002.9.30 % 2002.6.30 2002.3.31
CHANGE
-------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK 44,576 44,576 - 44,576 44,576
-------------------------------------------------------------------------------------------------------------------
CAPITAL SURPLUS 2,884,385 2,884,430 - 2,884,430 2,895,246
-------------------------------------------------------------------------------------------------------------------
RETAINED EARNINGS 4,898,146 4,734,459 3.5% 4,290,442 3,829,462
-------------------------------------------------------------------------------------------------------------------
CAPITAL ADJUSTMENT (2,289,272) (1,265,564) (80.9%) (1,424,806) (1,219,335)
-------------------------------------------------------------------------------------------------------------------
TREASURY STOCK (2,192,449) (1,192,940) (83.8%) (1,192,940) (1,192,940)
-------------------------------------------------------------------------------------------------------------------
LOSS ON VALUATION OF INVESTMENT
SECURITIES (99,275) (74,657) 33.0% (233,481) (27,592)
-------------------------------------------------------------------------------------------------------------------
STOCK OPTIONS 2,452 2,034 20.6% 1,616 1,198
-------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDER'S EQUITY 5,537,835 6,397,901 (13.4%) 5,794,642 5,549,950
-------------------------------------------------------------------------------------------------------------------
As of December 31, 2002, total shareholders' equity decreased by 13.4% to KRW
5,537,835 mn compared with September 30, 2002. The decrease is mainly due to
stock buyback of * KRW 999bn for the cancellation.
* KRW 999bn = KRW 224,000 per unit price X 4,457,635 shares (5% of KT's holding
in SKT)
Loss on valuation of investment securities increased 33% to KRW 99,275mn as of
December 31, 2002, compared with September 30, 2002. The increase is mainly due
to removal of gain on valuation of KT shares as of September 30 (KRW 24bn) and
loss on valuation of Hanaro Telecom shares (KRW 2 bn)
E. CAPEX TREND
(KRW BN)
------------------------------------------------------------------------------------------------------------------
2001
2002 (SKT+STI) Q4 02 Q3 02 Q2 02 Q1 02
------------------------------------------------------------------------------------------------------------------
NETWORK 1,675 1,016 680 460 385 150
------------------------------------------------------------------------------------------------------------------
95 A/B 175 252 71 66 36 2
------------------------------------------------------------------------------------------------------------------
CDMA 2000 1X 1,186 601 456 290 313 127
------------------------------------------------------------------------------------------------------------------
BACKBONE & OTHERS 314 163 153 105 35 21
------------------------------------------------------------------------------------------------------------------
WIRELESS INTERNET 221 96 109 79 16 16
------------------------------------------------------------------------------------------------------------------
IMT-2000 (R&D) 15 40 4 2 4 5
------------------------------------------------------------------------------------------------------------------
OTHERS 53 218 17 17 10 9
------------------------------------------------------------------------------------------------------------------
TOTAL 1,964 1,370 810 558 416 180
------------------------------------------------------------------------------------------------------------------
II. SELECTED OPERATING DATA
------------------------------------------------------------------------------------------------------------------
Q4 02 Q3 02 Q2 02 Q1 02 Q4 01 Q3 01
------------------------------------------------------------------------------------------------------------------
No. of Employees 4,816 4,819 4,811 4,768 3,772 3,759
------------------------------------------------------------------------------------------------------------------
2G Cell Site 4,820 4,406 4,658 5,634 5,820 5,807
------------------------------------------------------------------------------------------------------------------
2.5G Cell Site 2,564 2,164 1,965 1,921 1,921 1,872
------------------------------------------------------------------------------------------------------------------
Fiber Optic Transmitter
(Incl. RF) 121,779 91,121 101,552 120,154 120,503 114,864
------------------------------------------------------------------------------------------------------------------
9
III. INCOME STATEMENT
(KRW MN)
--------------------------------------------------------------------------------------------------------------------
2001 2001
2002 (SKT) (Merged) Q4 02 Q3 02
--------------------------------------------------------------------------------------------------------------------
SIGN-UP FEE 229,941 113,227 146,712 46,592 62,691
MONTHLY FEE 3,035,145 2,143,776 2,729,283 811,003 777,030
CALL CHARGE 4,140,391 2,949,878 3,492,869 1,169,568 1,063,303
WIRELESS INTERNET 732,756 258,706 296,755 250,697 192,876
VAS AND OTHERS 479,559 249,655 184,464 126,995 109,366
SALES DISCOUNT (1,075,484) (659,177) -666,466 (321,136) (261,304)
CELLULAR REVENUE 7,542,308 5,056,065 6,241,748 2,083,720 1,943,963
Mobile to Mobile 404,607 446,170 435,150 108,588 102,992
Land to Mobile 687,695 724,892 907,272 173,891 176,687
INTERCONNECTION REVENUE 1,092,301 1,171,062 1,342,422 282,479 279,679
TOTAL REVENUE 8,634,610 6,227,127 7,584,170 2,366,199 2,223,641
WAGE & EMPLOYEE BENEFITS 304,608 219,803 316,362 59,807 81,086
- - -
MARKETING EXPENSES 1,630,892 906,058 1,158,520 533,536 388,168
Cellular Initial Commission 371,825 123,052 168,669 124,993 74,371
Cellular Monthly Commission 433,002 286,513 402,840 128,440 103,466
Advertisement 440,164 276,164 338,614 155,256 107,014
Retention Commission 385,900 217,964 246,020 124,847 103,317
Others 2,365 2,376
REPAIR EXPENSES 95,787 46,233 66,912 35,117 32,709
RENT 136,924 127,429 148,458 33,141 33,456
FEES 634,305 418,937 507,432 167,352 168,706
DEPRECIATION (INCL. AMORTIZATION) 1,414,627 1,097,992 1,673,027 425,386 365,324
LEASED-LINE EXPENSES 266,804 215,569 299,970 70,193 59,686
R&D 170,536 105,725 110,595 58,538 45,457
FREQUENCY USAGE FEES 119,216 55,898 78,861 30,634 29,943
BAD DEBT 19,783 108 6,409 19,783 (8,333)
INTERCONNECTION EXPENSES 738,033 603,149 620,861 196,802 197,835
Mobile to Mobile 494,054 501,933 495,937 132,603 124,042
Mobile to Land 156,540 131,616 132,924 41,699 51,294
USOB 87,439 (30,400) (8,000) 22,500 22,500
OTHERS 430,246 226,058 268,629 153,752 107,389
--------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES 5,961,761 4,022,959 5,256,036 1,784,041 1,501,427
OPERATING INCOME 2,672,849 2,204,168 2,328,134 582,158 722,215
EBITDA
(OPERATING INCOME + DEPRECIATION) 4,087,476 3,302,160 4,001,161 1,007,545 1,087,539
INTEREST INCOME 45,868 38,869 50,628 13,280 10,600
INCOMING FEES 103,066 53,058 49,618 24,173 31,477
FX GAIN 8,599 6,671 6,889 4,753 1,768
FX TRANSLATION GAIN 26,200 2,369 2,369 1,463 (7,105)
OTHERS 102,268 11,596 66,456 38,294 28,746
--------------------------------------------------------------------------------------------------------------------
NON-OPERATING INCOME 286,001 112,563 175,959 81,964 65,486
10
(KRW MN)
--------------------------------------------------------------------------------------------------------------------
2001 2001
2002 (SKT) (Merged) Q4 02 Q3 02
--------------------------------------------------------------------------------------------------------------------
304,482 150,575 271,202 77,147 78,054
INTEREST EXPENSES
LOSS ON USING EQUITY METHOD 177,048
R&D CONTRIBUTION 58,555 23,000 39,183 14,680 15,575
DONATIONS 67,432 111,146 124,743 57,941 6,823
FX LOSS 1,789 783 4,823 897 694
FX TRANSLATION LOSS 4,231 12,366 15,770 901 (935)
OTHERS 340,498 80,401 120,670 272,922 48,537
--------------------------------------------------------------------------------------------------------------------
NON-OPERATING EXPENSES 776,987 555,319 576,392 424,488 148,748
ORDINARY INCOME 2,181,864 1,761,412 1,927,701 239,634 638,952
EXTRAORDINARY GAIN 504 25 30
EXTRAORDINARY LOSS
--------------------------------------------------------------------------------------------------------------------
INCOME BEFORE TAXES 2,182,368 1,761,437 1,927,733 240,138 638,952
- -
INCOME TAXES 670,043 621,115 756,220 76,451 194,935
--------------------------------------------------------------------------------------------------------------------
NET INCOME 1,512,325 1,140,322 1,171,513 163,687 444,017
11
IV. BALANCE SHEET
(KRW MN)
----------------------------------------------------------------------------------
Dec-01
Dec-02 Sep-02 Jun-02 Mar-01 (Merged)
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
CASH & MARKETABLE SECURITIES 476,059 445,661 511,207 430,291 870,172
TRADE RECEIVABLES 1,293,257 1,179,222 1,120,436 1,046,660 1,046,311
SHORT-TERM LOAN 29,623 32,960 29,883 22,790 17,988
ACCOUNTS RECEIVABLE 1,018,236 1,167,711 760,029 1,204,752 1,106,479
ACCRUED INCOME RECEIVABLES 4,764 9,827 7,591 5,447 3,072
INVENTORIES 11,317 5,406 3,649 2,823 26,220
PREPAID EXPENSES AND OTHERS 61,136 53,225 53,278 44,766 41,141
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,894,392 2,894,013 2,486,072 2,757,529 3,111,383
INVESTMENT 1) 2,686,086 3,490,829 3,600,805 1,820,555 1,778,637
LONG-TERM DEPOSITS 2) 201,682 12,830 12,910 12,895 1,515
LEASEHOLD GUARANTEE DEPOSITS 221,815 237,697 243,660 252,910 261,377
OTHERS 102,030 96,643 97,169 104,081 114,650
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT ASSETS 3,211,613 3,837,999 3,954,544 2,190,441 2,156,178
LAND 439,915 442,346 440,751 440,302 441,934
BUILDING & FIXTURE 778,833 760,527 769,585 777,246 780,213
MACHINERY AND EQUIPMENT 2,432,552 2,233,838 2,239,683 2,289,971 2,396,319
CONSTRUCTION IN PROGRESS 345,063 276,593 224,265 194,907 166,626
OTHERS 455,186 519,877 430,784 309,094 320,395
NET PP&E 4,451,548 4,233,181 4,105,068 4,011,519 4,105,489
INTANGIBLE & DEFERRED ASSETS 2,390,350 2,400,366 2,438,802 2,446,556 2,482,362
----------------------------------------------------------------------------------------------------------------------------------
TOTAL FIXED ASSETS 6,841,898 6,633,546 6,543,870 6,458,076 6,587,851
TOTAL ASSETS 12,947,904 13,365,558 12,984,486 11,406,045 11,855,412
LIABILITIES & SHAREHOLDERS' EQUITY
ACCOUNTS PAYABLE 1,680,268 1,030,984 972,150 789,377 994,065
ACCRUED EXPENSES 469,267 473,815 423,598 390,475 293,347
SHORT-TERM BORROWING 620,000 1,065,000 1,515,000 715,000 1,135,000
INCOME TAX PAYABLE 384,179 338,700 396,375 382,330 357,201
CURRENT PORTION OF LONG-TERM DEBT 920,745 541,139 411,417 489,325 664,664
OTHERS 187,171 203,812 196,418 209,886 133,913
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 4,261,630 3,653,450 3,914,957 2,976,394 3,578,190
DEPOSIT FOR FACILITIES 46,850 48,743 47,278 48,127 56,520
LONG-TERM DEBT 2,913,922 3,056,702 3,070,892 2,691,594 2,695,354
ACCRUED SEVERANCE INDEMNITIES 46,879 94,730 88,708 75,992 60,319
OTHERS 38,010 39,995 39,427 36,904 32,911
DEFERRED INCOME TAX CREDITS 102,778 74,038 28,582 27,084 15,353
----------------------------------------------------------------------------------------------------------------------------------
TOTAL LONG-TERM LIABILITIES 3,148,439 3,314,207 3,274,887 2,879,701 2,860,457
TOTAL LIABILITIES 7,410,069 6,967,657 7,189,844 5,856,095 6,438,647
CAPITAL STOCK 44,576 44,576 44,576 44,576 44,576
12
(KRW MN)
----------------------------------------------------------------------------------
Dec-01
Dec-02 Sep-02 Jun-02 Mar-01 (Merged)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SURPLUS 2,884,385 2,884,430 2,884,430 2,895,246 2,890,754
RETAINED EARNINGS 4,898,146 4,734,459 4,290,442 3,829,462 3,386,458
CAPITAL ADJUSTMENTS (2,289,272) (1,265,564) (1,424,806) (1,219,335) (905,023)
Treasury Stock (2,192,449) (1,192,940) (1,192,940) (1,192,940) (841,206)
Loss on valuation of investment (99,275) (74,657) (233,481) (27,592) (64,777)
Stock Options 2,452 2,034 1,616 1,198 960
----------------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 5,537,835 6,397,901 5,794,642 5,549,950 5,416,765
1) INVESTMENT IN AFFILIATES + INVESTMENT SECURITIES
2) LONG-TERM DEPOSITS + LONG-TERM FINANCIAL INSTRUMENTS + INVESTMENT IN FUNDS
13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SK TELECOM CO., LTD.
By: /s/ Sung Hae Cho
--------------------------------
Name: Sung Hae Cho
Title: Vice President
IR Office
Date: January 29, 2003
14