2. Disclaimer
This material on Q4’13 earnings results of SK broadband based on K-IFRS contains the Company's preliminary figures which have not been audited yet, and is subject to change in the process of final auditing by external auditors.
In addition, this document has been restated as part of the item in the Income Statement for Year 2012 is restated as non-operating Income/Expenses, according to the amendment to financial accounting standards 1001.
This material may contain forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performances of the Company to be materially different from any future results or performances expressed or implied by such forward-looking statements.
Therefore, SK broadband has no liability for any risks or damages by investment decisions, while it may be utilized as references by other companies including securities firms.
The detailed criteria for classification in this document is following the Company's own criteria, and is subject to change without prior notice according to internal circumstances.
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4. ■ Summary of Income Statements
(KRW bn) Q4'13 Q3'13 QoQ 2013 2012 YoY
Operating Revenues 687.0 635.0 8.2% 2,539.4 2,492.2 1.9%
Operating Expenses 657.9 622.4 5.7% 2,466.2 2,410.6 2.3%
Operating Income 29.1 12.6 131.6% 73.2 81.6 -10.3%
Non-operating Income & Expenses -27.5 -10.3 -167.5% -60.9 -59.0 -3.2%
Income Before Income Tax 1.6 2.3 -29.4% 12.3 22.6 -45.6%
Income Tax - - N/A - 0.1 N/A
Net Income 1.6 2.3 -29.4% 12.3 22.5 -45.3%
EBITDA 146.6 129.1 13.5% 540.4 555.8 -2.8%
EBITDA Margin 21.3% 20.3% 1.0%p 21.3% 22.3% -1.0%p
Ⅰ. Financial Highlights
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5. (KRW bn) Q4'13 Q3'13 QoQ 2013 2012 YoY
Broadband 225.5 224.8 0.3% 909.2 935.0 -2.8%
TV 104.6 86.8 20.4% 344.7 221.8 55.4%
Residential Voice 44.6 47.1 -5.2% 197.4 256.6 -23.1%
Corporate Biz. 272.0 263.7 3.1% 1027.9 927.7 10.8%
- Corporate Voice 101.2 99.1 2.1% 386.6 341.4 13.2%
- Leased Line 106.7 103.6 3.0% 407.7 377.4 8.0%
- IDC/Solution, etc. 64.1 61.0 5.1% 233.6 208.9 11.8%
Others 40.3 12.6 220.2% 60.2 151.1 -60.2%
Total 687.0 635.0 8.2% 2,539.4 2,492.2 1.9%
▶ Broadband
– The YoY decrease was mainly due to declined in ARPU
– The QoQ increase was mainly due to subscriber growth
▶ TV
– The YoY and QoQ increase was due to subscriber
growth
▶ Residential Voice
– The YoY and QoQ decrease was mainly due to reduced
subscribers and telephony usage
▶ Corporate Biz.
– The YoY and QoQ increase was due to increase of
new customers and capacity expansion of existing
customers
▶ Others
– The YoY decrease was mainly due to decreased
revenue of fixed-line network construction
– The QoQ increase was mainly due to increased revenue
of fixed-line network construction
Ⅱ. Financial Results 1. Income Statements
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■ Operating Revenues
6. (KRW bn) Q4'13 Q3'13 QoQ 2013 2012 YoY
Labor Costs 33.2 37.5 -11.3% 151.4 144.4 4.8%
Marketing Expenses 102.1 87.0 17.2% 359.3 313.9 14.5%
- Sales Commissions 67.9 59.2 14.5% 246.6 218.5 12.9%
- Advertising 34.2 27.8 22.9% 112.7 95.4 18.1%
Other Commissions 201.2 177.8 13.2% 686.8 710.1 -3.3%
Interconnection Fees 56.8 59.8 -5.1% 242.7 246.1 -1.4%
NW Lease Expense 48.4 49.9 -3.1% 190.6 173.7 9.7%
Others 98.7 93.9 5.2% 368.2 348.2 5.7%
D&A 117.5 116.5 0.8% 467.2 474.2 -1.5%
Total 657.9 622.4 5.7% 2,466.2 2,410.6 2.3%
▶ Labor Costs
– The YoY increase was mainly due to the wage increase
implemented at the end of 2012.
– The QoQ decrease was mainly due to the reduced
allowances and employ benefit.
▶Marketing Expenses
– The YoY and QoQ increase was mainly due to subscriber
growth and increased media advertising.
▶Other Commissions
– The YoY decrease was mainly due to decreased
commission related to fixed-line network construction
– The QoQ increase was mainly due to increased
commission related to fixed-line network construction
▶ Interconnection Fees
– The YoY and QoQ decrease was mainly due to reduced
the usage of residential voice
▶Others
– The YoY and QoQ increase was mainly due to increased
selling expenses related to sales of facilities
Note1)
Note2)
Ⅱ. Financial Results 1. Income Statements
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■ Operating Expenses
Note1) Consists of wages(salaries & allowances + retirement pay) and employee benefits
Note2) Consists of maintenance, selling expenses, utilities, and bad debt, etc
7. (KRW bn) Q4'13 Q3'13 QoQ 2013 2012 YoY
Interest Income & Expenses -11.8 -11.0 -7.6% -46.3 -57.2 19.0%
- Interest Income 2.3 1.6 43.6% 8.1 14.7 -45.4%
- Interest Expenses 14.1 12.6 12.1% 54.4 71.9 -24.4%
Others -15.7 0.7
Turned
Negative
-14.6 -1.8 -727.9%
Total -27.5 -10.3 -167.5% -60.9 -59.0 -3.2%
Average Interest Rate of Debt(p.a) 3.9% 3.9% 0.0%p 3.9% 4.2% -0.3%p
▶ Interest Income & Expenses
– The YoY improvement was due to decreased interest
rate
– The QoQ decrease was due to increase in debt
balance
▶ Others
– The YoY and QoQ decrease mainly due to the
impairment loss of invested securities
Ⅱ. Financial Results 1. Income Statements
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■ Non-operating Income & Expenses
8. Q4'13 Q3'13 QoQ 2013 2012 YoY
Debt 1,322.1 1,247.0 6.0% 1,322.1 1,450.1 -8.8%
Cash Equivalents 71.5 100.5 -28.8% 71.5 239.9 -70.2%
Total Shareholders' Equity 1,127.6 1,121.1 0.6% 1,127.6 1,110.6 1.5%
Debt to Equity 117.2% 111.2% 6.0%p 117.2% 130.6% -13.4%p
Net Debt to Equity 110.9% 102.3% 8.7%p 110.9% 109.0% 1.9%p
(KRW bn)
▶ CAPEX
– The cumulative CAPEX for 2013 is KRW 576.2 billion
including KRW 226.3 for last-mile investment
▶ Debt to Equity
– The YoY improvement was mainly due to debt
repayment
– The QoQ increase was due to the rise of debt amount
■ CAPEX
Note1)
Note2)
(KRW bn) Q4'13 Q3'13 QoQ 2013 2012 YoY
Backbone 104.9 54.5 92.6% 177.2 149.8 18.3%
Last-mile 104.5 64.2 62.8% 226.3 175.0 29.3%
IDC, etc. 0.4 9.5 -95.9% 20.9 15.9 31.4%
Others 68.4 49.6 37.6% 151.8 90.6 67.6%
Total 278.2 177.8 56.4% 576.2 431.3 33.6%
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■ Financial Ratios
Ⅱ. Financial Results 2. Financial Ratios/CAPEX
Note1) Consists of borrowings, corporate bond, and other financial liabilities
Note2) Consists of cash & cash equivalents, and short-term financial instruments
9. Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13
Broadband 4,348,020 4,394,123 4,436,182 4,460,880 4,502,613 4,569,105
Net Addition +45,550 +46,103 +42,059 +24,698 +41,733 +66,492
Voice 4,480,435 4,509,608 4,528,203 4,566,480 4,531,641 4,568,210
Residential 3,304,814 3,287,390 3,232,613 3,189,238 3,144,123 3,099,067
Corporate 1,175,621 1,222,218 1,295,590 1,377,242 1,387,518 1,469,143
Net Addition +65,184 +29,173 +18,595 +38,277 -34,839 +36,569
TV 1,306,693 1,445,366 1,568,638 1,727,430 1,903,077 2,095,751
IPTV(Live) 1,252,584 1,402,529 1,533,841 1,704,562 1,884,519 2,081,260
Net Addition +131,536 +149,945 +131,312 +170,721 +179,957 +196,741
VOD 54,109 42,837 34,797 22,868 18,558 14,491
Net Addition +120,169 +138,673 +123,272 +158,792 +175,647 +192,674
Ⅲ. Subscribers
Note) Includes the number of subscriber from SK Telecom’s resale
Note)
Note)
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■ Subscriber Breakdown