Q3 2018 Net profit 1.0498 trillion won
Acquisition of ADT Caps, incorporation of SK Infosec, etc.
Developing into a comprehensive ICT company

On the 30th, SK Telecom reported sales of 4.1864 trillion won, operating profit of 304.1 billion won, and net profit of 1.0498 trillion won for the third quarter of 2018, based on consolidated financial statements.

Sales and operating profit decreased by 5.8% and 22.5%, respectively, compared to the same period last year. Revenue from the mobile telecommunications business declined due to factors such as an increase in subscribers to selective contract plans, a rise in discount rates (up from 20% to 25%), and fee reductions for vulnerable groups.

Net profit surpassed 1 trillion won on a quarterly basis for the first time in history. This was driven by equity method gains resulting from SK Hynix's record-breaking performance and increased by 32.4% compared to 2017.

Compared to the previous quarter, consolidated revenue and net profit increased by 0.8% and 14.8%, respectively, but operating profit decreased by 12.3%.

Despite concerns about a short-term decline in earnings, SK Telecom continues to innovate across the entire spectrum of mobile telecommunications, including rate plans, contract systems, roaming, and memberships. In particular, SK Telecom significantly revamped its rate plans and roaming services in the third quarter to reduce the burden of communication costs for customers.

'T Plan', launched in July, surpassed 3 million subscribers as of the end of October through expanded data allowances and family combination benefits. The number of subscribers to the '0 Plan,' a rate plan tailored for the 10-20 generation launched in August, also exceeded 300,000 within two months of its launch.

The 'T Guam & Saipan Pass' offers benefits that differentiate it from existing roaming services, such as allowing users to use data and voice at domestic rates in Guam and Saipan and receive membership discounts.
SK Telecom has taken steps to realize world-class 5G quality. Since selecting the first 5G equipment supplier in Korea in September, SK Telecom has successively succeeded in demonstrating a first call using commercial 5G equipment and interoperability between 5G equipment from different manufacturers.

In addition to this, SK Telecom has agreed to mutually invest with Deutsche Telekom to provide 5G services and is also working to expand the 5G ecosystem by launching immersive media services such as 'oksusu Social VR'.

The media business has established itself as SK Telecom's growth engine, continuing its growth in both revenue and subscribers in the third quarter. IPTV revenue recorded 322.8 billion won under standard accounting, up 26.3% from the same period last year. As of the end of September, the number of subscribers to the mobile IPTV Oksusu increased by 16.6% year-on-year to 9.46 million, and the number of monthly unique visitors to Oksusu surpassed 7 million, an increase of 29.4% year-on-year.

Along with this, SK Telecom has established itself as a comprehensive ICT company by successfully completing the acquisition of ADT Caps, incorporating SK Infosec as a subsidiary, and attracting investment and spinning off 11st.

SK Telecom plans to lead the transformation of the domestic security service market by establishing an integrated service system ranging from physical security to information security. In addition, it intends to actively discover new 5G-based security business models to develop its security business into a core new growth engine.

11st spun off into a new entity in September, attracting 500 billion won in investment funds, and laid the foundation to grow into the number one e-commerce business operator by developing services combined with SK Telecom's new ICT technology.

SK Telecom has accelerated efforts to strengthen its AI competitiveness, including launching new devices and releasing an open platform to expand the ecosystem. In September, SK Telecom reorganized its organization and personnel by establishing an 'AI Center' that integrated AI R&D and business organizations, and recruiting leading scholars in AI.

Yoo Young-sang, Head of SK Telecom’s Corporate Center, stated, “Even in a challenging mobile telecommunications business environment, we have continued sincere innovation across all areas of mobile telecommunications to provide tangible benefits to our customers,” adding, “Based on the customer trust secured through this, we will pursue the company’s healthy and long-term growth.”