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 MAY 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- .)
================================================================================
MAY 6, 2003
1ST QUARTER EARNINGS FOR THE
PERIOD ENDED MARCH 31, 2003
* THE INFORMATION CONTAINED HEREIN IS BASED ON KOREAN GAAP.
(SK TELECOM LOGO)
================================================================================
SEOUL, KOREA, MAY 6, 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 FIRST QUARTER ENDED
MARCH 31, 2003.
================================================================================
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
\
---------------------------------------------------------------------------
CONTENTS
---------------------------------------------------------------------------
I. FINANCIAL HIGHLIGHTS..................................... 4
II. FINANCIAL RESULTS........................................ 5
1. INCOME STATEMENT
2. BALANCE SHEET
3. CAPITAL EXPENDITURE
III. QUARTERLY FACTSHEET...................................... 9
IV. SPECIAL ITEM (MERGER WITH SK IMT)........................ 10
V. APPENDIX (FINANCIAL STATEMENTS).......................... 11
VI. IR CONTACTS.............................................. 14
---------------------------------------------------------------------------
3
I. FINANCIAL HIGHLIGHTS
o SUMMARY OF INCOME STATEMENT
=================================================================================================
(KRW BN) 1Q 03 4Q 02 CHANGE(%) 1Q 02 1) CHANGE(%)
=================================================================================================
REVENUE 2,243 2,366 -5% 1,932 16%
-------------------------------------------------------------------------------------------------
OPERATING EXPENSES 1,492 1,773 -16% 1,269 18%
-------------------------------------------------------------------------------------------------
OPERATING INCOME 751 593 27% 663 13%
-------------------------------------------------------------------------------------------------
Operating Margin 33% 25% 34%
-------------------------------------------------------------------------------------------------
NON-OPERATING INCOME 49 68 -29% 59 -18%
-------------------------------------------------------------------------------------------------
NON-OPERATING EXPENSES 149 424 -65% 86 75%
-------------------------------------------------------------------------------------------------
ORDINARY INCOME 650 238 173% 637 2%
-------------------------------------------------------------------------------------------------
NET INCOME 449 163 176% 444 1%
-------------------------------------------------------------------------------------------------
Net Margin 20% 7% 23%
-------------------------------------------------------------------------------------------------
EBITDA 2) 1,094 1,057 4% 979 12%
-------------------------------------------------------------------------------------------------
EBITDA Margin 49% 45% 51%
=================================================================================================
1) Excludes the 12 days of Shinsegi Telecomm's performance before the official
merger on January 13, 2002
2) EBITDA = Operating income + Depreciation + R&D related depreciation
included in R&D expense
o OTHER MAIN ITEMS
===============================================================================================
(KRW BN) 1Q 03 4Q 02 CHANGE(%) Q1 02 1) CHANGE(%)
===============================================================================================
WIRELESS INTERNET SALES 265 251 5% 127 108%
-----------------------------------------------------------------------------------------------
% of Cellular Revenue 13% 12% 8%
===============================================================================================
===============================================================================================
MARKETING EXPENSES 357 526 -32% 357 0%
===============================================================================================
Marketing Commissions 264 371 -29% 287 -8%
-----------------------------------------------------------------------------------------------
Advertising 93 155 -40% 70 33%
-----------------------------------------------------------------------------------------------
% of Revenue 16% 22% 18%
===============================================================================================
===============================================================================================
CAPITAL EXPENDITURE 174 806 -78% 174 0%
-----------------------------------------------------------------------------------------------
% of Revenue 8% 34% 9%
===============================================================================================
===============================================================================================
INTEREST-BEARING DEBT 5,815 4,455 31% 3,896 49%
-----------------------------------------------------------------------------------------------
Debt/Equity ratio (%) 118% 81% 70%
===============================================================================================
1) Excludes the 12 days of Shinsegi Telecomm's performance before the official
merger on January 13, 2002
4
II. FINANCIAL RESULTS
1. INCOME STATEMENT
A. REVENUE
===================================================================================================
(KRW BN) 1Q 03 4Q 02 CHANGE(%) 1Q 02 1) CHANGE(%)
===================================================================================================
SIGN-UP FEES 45 47 -3% 72 -37%
---------------------------------------------------------------------------------------------------
MONTHLY FEES 2) 737 753 -2% 664 11%
---------------------------------------------------------------------------------------------------
VOICE REVENUE 2) 935 1,033 -9% 807 16%
---------------------------------------------------------------------------------------------------
USAGE CHARGES 830 922 -10% 745 12%
---------------------------------------------------------------------------------------------------
VAS AND OTHERS 105 111 -6% 62 70%
---------------------------------------------------------------------------------------------------
WIRELESS INTERNET SALES 2) 265 251 5% 127 108%
---------------------------------------------------------------------------------------------------
% of Cellular Revenue 13% 12% 8%
===================================================================================================
TOTAL CELLULAR REVENUE 1,983 2,084 -5% 1,670 19%
===================================================================================================
INTERCONNECTION REVENUE 260 282 -8% 262 -1%
===================================================================================================
L-M 164 174 -6% 169 -3%
---------------------------------------------------------------------------------------------------
M-M 96 108 -11% 93 3%
===================================================================================================
TOTAL REVENUE 2,243 2,366 -5% 1,932 16%
===================================================================================================
1) Excludes the 12 days of Shinsegi Telecomm's performance before the official
merger on January 13, 2002
2) Net sales reflecting sales discounts
1) SIGN-UP FEES & MONTHLY FEES
- SIGN-UP FEES: Mainly due to the decrease in new adds, sign-up fees
decreased 3% QoQ and 37% YoY.
- MONTHLY FEES: Despite a cut in standard monthly fees by 6.7%, monthly
fees revenue decreased only 2% QoQ, and increased 11% YoY due to
increased subscribers.
2) VOICE REVENUE
- USAGE CHARGES: Despite 1) a cut in standard usage charges of 4.8%, 2)
an increase in free minutes (from 7 to 10 minutes), and 3) a decrease
in MOU from seasonal effect from Lunar New Year Holiday and fewer days
in February, usage charges revenue decreased 10% QoQ. But owing to
increase in subscribers and MOU, usage charges revenue increased 12%
YoY.
- VAS AND OTHERS: Due to 1) the accounting method change (to net sales
excluding commissions to contents providers) in voice information
services (ARS service, 114 , etc) and 2) seasonal effect, revenue from
VAS and others decreased 6% QoQ. Under the previous method, including
commissions to contents providers in revenue, VAS and others would
have increased 1% QoQ to KRW 112.2b. Because of a gradual increase in
VAS subscribers, VAS and others revenue increased 70% YoY.
3) WIRELESS INTERNET SALES
- WIRELESS INTERNET SALES: In spite of 1) the accounting method change
(to post net sales excluding sourcing cost of contents such as
e-lottery and tickets) and 2) seasonal effect, wireless Internet sales
increased 5% QoQ. With the old accounting method of realizing
e-lottery sales, wireless Internet sales would have increased 8% QoQ
to KRW 272.3b. Owing to the increase in Internet-enabled handsets and
high-end handsets which generate higher wireless Internet ARPU(June,
EV-DO, Color, 1X), wireless Internet sales increased 108% YoY.
- PORTION IN CELLULAR REVENUE: Wireless Internet sales portion in total
revenue excluding interconnection revenue was 13%, a sustained
increase from 8% in the 1st quarter, and 12% in the 4th quarter in
2002.
-
4) INTERCONNECTION REVENUE
- L-M: Despite a 10.3% reduction in interconnection rate, L-M revenue
decreased only 6% QoQ due to the adjustments of difference between the
estimates and final settlement.
- M-M: Due to the interconnection rate adjustment, M-M revenue
decreased 11% QoQ.
5
B. OPERATING EXPENSES
===============================================================================================
(KRW BN) 1Q 03 4Q 02 CHANGE(%) 1Q 02 1) CHANGE(%)
===============================================================================================
WAGE AND EMPLOYEE BENEFITS 124 60 107% 97 28%
-----------------------------------------------------------------------------------------------
COMMISSIONS 525 603 -13% 440 19%
-----------------------------------------------------------------------------------------------
MARKETING COMMISSIONS 264 371 -29% 287 -8%
-----------------------------------------------------------------------------------------------
INITIAL COMMISSIONS 75 121 -38% 118 -37%
-----------------------------------------------------------------------------------------------
MONTHLY COMMISSIONS 104 127 -18% 98 6%
-----------------------------------------------------------------------------------------------
RETENTION COMMISSIONS 85 122 -30% 71 20%
-----------------------------------------------------------------------------------------------
FEES 172 167 3% 126 37%
-----------------------------------------------------------------------------------------------
OTHER COMMISSIONS 89 65 37% 27 236%
-----------------------------------------------------------------------------------------------
ADVERTISING 93 155 -40% 70 33%
-----------------------------------------------------------------------------------------------
DEPRECIATION 315 425 -26% 298 6%
-----------------------------------------------------------------------------------------------
NETWORK INTERCONNECTION 181 197 -8% 149 22%
-----------------------------------------------------------------------------------------------
M-M 121 133 -9% 111 9%
-----------------------------------------------------------------------------------------------
M-L 61 64 -6% 38 59%
-----------------------------------------------------------------------------------------------
LEASED LINE 73 70 4% 66 11%
-----------------------------------------------------------------------------------------------
OTHER 2) 181 262 -31% 150 20%
===============================================================================================
TOTAL 1,492 1,773 -16% 1,269 18%
===============================================================================================
1) Excludes the 12 days of Shinsegi Telecomm's performance before the official
merger on January 13, 2002
2) For more details, please refer to income statements in appendix.
1) WAGE AND EMPLOYEE BENEFITS
- Due to 1) the payment of incentive bonus for the 2002 performance, and
2) a basic salary increase, wage and employee benefits increased 107%
QoQ and 28% YoY.
2) COMMISSIONS
- MARKETING COMMISSIONS : Due to the "Clean marketing" policy and focus
on profitability, marketing commissions decreased 29% QoQ and 8% YoY.
- FEES : Fees include outsourcing service fees, general fees, financial
fees, roaming fees, etc.
- OTHER COMMISSIONS : VAS expenses (paid to contents providers for
wireless Internet information sales) account for most of the other
commissions.
3) ADVERTISING
- As there were no introduction of new brands like June and Moneta in
the 4th quarter last year, advertising decreased 40% QoQ.
- Due to an increase in number of new brands (Cara, June, Moneta),
advertising increased 33% YoY.
4) DEPRECIATION
- Depreciation decreased 26% QoQ due to reduction in the depreciable
assets in the 1st quarter this year from the 4th quarter last year
because of our declining balance depreciation method.
5) NETWORK INTERCONNECTION
- M-M : Due to the interconnection rate cut, M-M Interconnection cost
decreased 9% QoQ.
- M-L : For USOB Fund, W22.5b was paid in the 1st quarter 2003.
Excluding USOB payment, M-L interconnection cost decreased 9% q-q due
to the interconnection rate cut (7.5%) and reduced outgoing MOUs.
6
C. NON-OPERATING ITEMS
=================================================================================================
(KRW BN) 1Q 03 4Q 02 CHANGE(%) 1Q 02 1) CHANGE(%)
=================================================================================================
NON-OPERATING INCOME 49 68 -29% 59 -18%
=================================================================================================
INTEREST INCOME 12 14 -14% 9 27%
-------------------------------------------------------------------------------------------------
INCOMING FEES 27 25 10% 22 25%
-------------------------------------------------------------------------------------------------
OTHER 2) 10 30 -68% 28 -65%
=================================================================================================
NON-OPERATING EXPENSES 149 424 -65% 86 75%
=================================================================================================
INTEREST EXPENSES 87 77 13% 69 26%
-------------------------------------------------------------------------------------------------
DONATIONS 20 73 -72% 11 76%
-------------------------------------------------------------------------------------------------
LOSS ON DISPOSAL OF PROPERTY AND EQUIPMENT 2 178 -99% 3 -34%
-------------------------------------------------------------------------------------------------
LOSS ON EQUITY METHOD 11 0 - 0 -
-------------------------------------------------------------------------------------------------
OTHER 2) 29 96 -70% 2 1320%
=================================================================================================
1) Excludes the 12 days of Shinsegi Telecomm's performance before the official
merger on January 13, 2002
2) For more details, please refer to income statements in appendix.
1) LOSS ON DISPOSAL OF PROPERTY AND EQUIPMENT
- There was no significant loss from the disposal of property and
equipment like in the 4th quarter of last year when the company
charged KRW 157.4b due to disposal of unusable equipments from
Shinsegi Telecomm.
2) OTHER (NON-OPERATING EXPENSES)
- Other non-operating expenses were substantially high in the 4th
quarter last year due to losses on disposal of KT shares (W47.9b) and
losses on impairment of KT shares (W44.5b ) incurred by the share swap
with KT.
7
2. BALANCE SHEET
==============================================================================================
(KRW BN) MAR 03 DEC 02 CHANGE(%)
==============================================================================================
TOTAL ASSETS 13,104 12,721 3%
==============================================================================================
CURRENT ASSETS 4,109 2,747 50%
----------------------------------------------------------------------------------------------
CASH AND MARKETABLE SECURITIES 1,621 546 197%
----------------------------------------------------------------------------------------------
INVESTMENT ASSETS 2,352 3,132 -25%
----------------------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT 4,279 4,452 -4%
----------------------------------------------------------------------------------------------
INTANGIBLE ASSETS 2,364 2,390 -1%
==============================================================================================
LIABILITIES 8,166 7,184 14%
==============================================================================================
CURRENT LIABILITIES 4,929 4,016 23%
----------------------------------------------------------------------------------------------
SHORT-TERM BORROWINGS 1,691 620 173%
----------------------------------------------------------------------------------------------
CURRENT PORTION OF LONG-TERM DEBT 1,140 921 24%
----------------------------------------------------------------------------------------------
LONG-TERM LIABILITIES 3,238 3,168 2%
----------------------------------------------------------------------------------------------
LONG-TERM DEBT 2,984 2,914 2%
==============================================================================================
SHAREHOLDERS' EQUITY 4,938 5,537 -11%
==============================================================================================
DEBT/EQUITY RATIO (%) 118% 81%
==============================================================================================
1) ASSETS
- CASH AND MARKETABLE SECURITIES : Because of unstable money market due
to the North Korean nuclear issue and War in Iraq, SK Telecom has been
increasing its level of cash to increase liquidity as a part of risk
management. As a result, cash and marketable securities increased 197%
QoQ.
- INVESTMENT ASSETS : Due to the disposal of KT shares (W730.6b) from
the share swap in January, investment assets decreased 25% QoQ. (The
amount of disposal of KT shares in December 2002 was W846.9b)
2) LIABILITIES
- SHORT-TERM BORROWINGS : Due to the issuance of CP (W1, 071.3b) to
increase liquidity, short-term borrowings increased 173% QoQ. 3)
SHAREHOLDERS' EQUITY
- Despite a W448.7b of net income, shareholders' equity decreased 11%
QoQ mainly because of the reduction in retained earnings due to the
share buyback and cancellation conducted in January.
4) DEBT/EQUITY RATIO
- Debt/Equity ratio rose to 118% in the 1st quarter, 2003 compared to
81% in the 4th quarter, 2002 due to the increased short-term
borrowings for liquidity and the decreased shareholders' equity after
the stock cancellation.
3. CAPITAL EXPENDITURE
==========================================================================================
(KRW BN) 1Q 03 4Q 02 CHANGE(%) 1Q 02 1) CHANGE(%)
==========================================================================================
NETWORK 87 680 -87% 150 -42%
------------------------------------------------------------------------------------------
95 A/B 8 71 -89% 2 397%
------------------------------------------------------------------------------------------
CDMA 2000 1X 65 456 -86% 127 -49%
------------------------------------------------------------------------------------------
BACKBONE AND OTHER 14 153 -91% 21 -33%
------------------------------------------------------------------------------------------
NON-NETWORK 86 126 -32% 24 256%
------------------------------------------------------------------------------------------
WIRELESS INTERNET 41 109 -66% 16 163%
------------------------------------------------------------------------------------------
GENERAL SUPPORTING 37 17 121% 9 329%
------------------------------------------------------------------------------------------
OTHERS 8 - - - -
==========================================================================================
TOTAL CAPEX 174 806 -78% 174 0%
==========================================================================================
1) Excludes the 12 days of Shinsegi Telecomm's performance before the official
merger on January 13, 2002
- Capital Expenditure was about the same level as the 1st quarter last
year and a decrease of 78% QoQ.
8
III. QUARTERLY FACTSHEET
=======================================================================================================
1Q 03 4Q 02 CHANGE(%) 1Q 02 1) CHANGE(%)
=======================================================================================================
SUBSCRIBERS ('000) 17,628 17,220 2% 16,001 10%
-------------------------------------------------------------------------------------------------------
NET ADDS 408 223 83% 822 -50%
-------------------------------------------------------------------------------------------------------
ACTIVATIONS 945 948 0% 1,516 -38%
-------------------------------------------------------------------------------------------------------
DEACTIVATIONS 537 725 -26% 694 -23%
-------------------------------------------------------------------------------------------------------
Monthly Churn Rate(%) 1.0% 1.5% 1.4%
-------------------------------------------------------------------------------------------------------
AVERAGE SUBSCRIBERS ('000) 17,428 17,121 2% 15,503 12%
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MONTHLY ARPU (WON) 42,895 46,057 -7% 41,546 3%
-------------------------------------------------------------------------------------------------------
SIGN-UP FEE 868 908 -4% 1,553 -44%
-------------------------------------------------------------------------------------------------------
MONTHLY FEE & CALL CHARGE 29,980 32,604 -8% 30,288 -1%
-------------------------------------------------------------------------------------------------------
VAS & OTHER 2,011 2,168 -7% 1,332 51%
-------------------------------------------------------------------------------------------------------
WIRELESS INTERNET 5,068 4,893 4% 2,736 85%
-------------------------------------------------------------------------------------------------------
INTERCONNECTION 4,968 5,484 -9% 5,637 -12%
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
MOU (OUTGOING) 186 1) 196 -5% 182 2%
-------------------------------------------------------------------------------------------------------
MOU (INCOMING) 113 1) 117 -3% 113 0%
-------------------------------------------------------------------------------------------------------
SUBSCRIBER BY HANDSET FEATURE ('000)
-------------------------------------------------------------------------------------------------------
1X(INCL. EV-DO) 11,173 9,936 12% 5,114 118%
-------------------------------------------------------------------------------------------------------
EV-DO(INCL. JUNE) 608 134 355% - -
-------------------------------------------------------------------------------------------------------
JUNE 393 67 486% - -
-------------------------------------------------------------------------------------------------------
COLOR 6,211 4,729 31% 1,235 403%
-------------------------------------------------------------------------------------------------------
WIRELESS INTERNET ARPU BY HANDSET (WON) 2)
-------------------------------------------------------------------------------------------------------
2G 1,419 1,566 -9% 1,524 -7%
-------------------------------------------------------------------------------------------------------
1X (EXCLUDING EV-DO) 5,655 6,355 -11% 5,282 7%
-------------------------------------------------------------------------------------------------------
COLOR 9,329 9,748 -4% 8,892 5%
=======================================================================================================
1) March MOU is an estimate.
2) Excludes others in wireless Internet sales such as financial enabler, PDA,
VMT, Solution/Platform sales, etc.
9
IV. SPECIAL ITEM
O MERGER WITH SK IMT
MERGER SCHEDULE
- December 21, 2002 - Approved by the Board of Directors
- April 30, 2003 - Approved by the Ministry of Information and
Communication
- Mary 1, 2003 - Official merger date
- May 13, 2003 - Listing of new shares issued to minority shareholders
in SK IMT
ISSUANCE OF NEW SHARES
- Merger ratio : 0.11276 SK Telecom share per SK IMT share (based on the
price of W243,000 of SK Telecom and W27,400 per SK IMT share)
- Exercise of put-back option : The sum of the stake of SK IMT's
shareholders who opposed to the merger and exercised the put-back
option was 36.8% (22,078,770 shares of SK IMT). The amount that had
been paid to these shareholders was W 605.0b , financed by the cash in
SK IMT.
- Number of New Shares : 1.86% of SK IMT shareholders approved the
merger (1,119,872 shares of SK IMT), which comes to 126,276 shares of
SK Telecom.
OTHERS
- As of March 2003, book value of SK IMT in our balance sheet was W1,
017.7b. - For more details, please refer to financial statements of SK
IMT in appendix.
10
V. APPENDIX - INCOME STATEMENT
===================================================================================================
(KRW MN) 1Q 03 4Q 02 1Q 02 1)
===================================================================================================
REVENUE 2,242,746 2,365,638 1,932,239
---------------------------------------------------------------------------------------------------
OPERATING EXPENSES 1,491,808 1,772,653 1,269,150
---------------------------------------------------------------------------------------------------
WAGE AND EMPLOYEE BENEFITS 123,926 59,844 96,891
COMMISSIONS PAID 525,085 603,457 439,690
ADVERTISING 92,696 155,115 69,793
DEPRECIATION 315,180 425,386 297,689
NETWORK INTERCONNECTION 181,112 196,759 149,010
LEASED LINE 72,894 70,193 65,730
R&D EXPENSES 47,784 58,538 33,212
FREQUENCY USAGE FEES 31,569 30,634 27,992
BAD DEBT 3,731 15,357 1,902
RENT 30,644 33,359 39,989
OTHERS 67,187 124,011 47,252
---------------------------------------------------------------------------------------------------
OPERATING INCOME 750,938 592,985 663,089
---------------------------------------------------------------------------------------------------
NON-OPERATING INCOME 48,691 68,421 59,008
---------------------------------------------------------------------------------------------------
INTEREST INCOME 11,813 13,687 9,282
INCOMING FEES 27,168 24,618 21,746
FOREIGN EXCHANGE AND TRANSLATION GAINS 2,453 6,217 160
REVERSAL OF ALLOWANCE FOR DOUBTFUL ACCOUNTS 0 -5,826 1,527
GAIN ON DISPOSAL OF PROPERTY AND EQUIPMENT 276 596 1,862
GAIN ON EQUITY METHOD 0 23,478 21,679
OTHER 6,981 5,652 2,751
---------------------------------------------------------------------------------------------------
NON-OPERATING EXPENSES 149,479 423,643 85,555
---------------------------------------------------------------------------------------------------
INTEREST EXPENSES 86,734 77,175 68,745
DONATIONS 20,102 72,621 11,427
LOSS ON DISPOSAL OF PROPERTY AND EQUIPMENT 2,194 177,830 3,338
LOSS ON EQUITY METHOD 11,405 - -
FOREIGN EXCHANGE AND TRANSLATION LOSS 11,796 1,798 1,274
LOSS ON IMPAIRMENT OF INVESTMENT SECURITIES 16,417 44,496 -
LOSS ON DISPOSAL OF INVESTMENT ASSETS 77 49,281 354
OTHER 753 441 417
---------------------------------------------------------------------------------------------------
ORDINARY INCOME 650,149 237,764 636,543
---------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 650,154 238,268 636,543
---------------------------------------------------------------------------------------------------
INCOME TAXES 201,480 75,628 192,902
---------------------------------------------------------------------------------------------------
NET INCOME 448,674 162,640 443,641
---------------------------------------------------------------------------------------------------
1) Excludes the 12 days of Shinsegi Telecomm's performance before the official
merger on January 13, 2002
11
V. APPENDIX - BALANCE SHEET
---------------------------------------------------------------------------------------------------
(KRW MN) MAR 03 DEC 02 MAR 02
---------------------------------------------------------------------------------------------------
TOTAL ASSETS 13,104,257 12,721,218 13,104,257
---------------------------------------------------------------------------------------------------
CURRENT ASSETS 4,108,732 2,746,991 2,757,529
---------------------------------------------------------------------------------------------------
CASH AND MARKETABLE SECURITIES 1,620,876 546,382 430,291
ACCOUNTS RECEIVABLE - TRADE 1,253,421 1,290,475 1,046,660
SHORT-TERM LOANS 27,640 29,623 22,790
ACCOUNTS RECEIVABLE - OTHER 1,103,879 809,616 1,204,752
ACCRUED INCOME RECEIVABLES 8,877 4,805 5,447
INVENTORIES 9,872 10,718 2,823
OTHER 84.168 55,372 44,766
---------------------------------------------------------------------------------------------------
INVESTMENT ASSETS 2,352,419 3,132,330 2,190,441
---------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENT SECURITIES 2,010,099 2,806,963 1,834,059
LONG-TERM LOANS 54,215 57,984 73,726
GUARANTEE DEPOSITS 240,170 221,815 252,910
OTHER 47,935 45,568 29,745
---------------------------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT 4,279,040 4,451,548 4,011,519
---------------------------------------------------------------------------------------------------
LAND 439,270 439,915 440,302
BUILDING AND FIXTURE 775,553 778,833 777,246
EQUIPMENT 2,499,356 2,432,552 2,289,971
CONSTRUCTION IN PROGRESS 233,958 345,063 194,907
OTHER 330,904 455,186 309,094
---------------------------------------------------------------------------------------------------
INTANGIBLE ASSETS 2,364,066 2,390,350 2,446,556
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
LIABILITIES 8,166,462 7,184,271 5,856,095
---------------------------------------------------------------------------------------------------
CURRENT LIABILITIES 4,928,846 4,015,859 2,976,394
---------------------------------------------------------------------------------------------------
ACCOUNTS PAYABLE 903,446 1,587,532 789,377
SHORT-TERM BORROWINGS 1,691,326 620,000 390,552
INCOME TAXES PAYABLE 411,083 362,365 715,000
ACCRUED EXPENSES 359,974 354,716 382,330
CURRENT PORTION OF LONG-TERM DEBT 1,139,794 920,745 489,325
OTHER 423,223 170,502 209,809
---------------------------------------------------------------------------------------------------
LONG-TERM LIABILITIES 3,237,617 3,168,412 2,879,701
---------------------------------------------------------------------------------------------------
LONG-TERM DEBT 2,984,162 2,913,922 2,691,594
FACILITY DEPOSITS 45,249 46,850 48,127
ACCRUED SEVERANCE INDEMNITIES 55,448 45,861 4,088
OTHER 152,758 161,778 135,892
---------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY 4,937,794 5,536,948 4,937,794
---------------------------------------------------------------------------------------------------
CAPITAL STOCK 44,576 44,576 44,576
CAPITAL SURPLUS 2,884,355 2,884,385 2,895,246
RETAINED EARNINGS 4,184,402 4,897,099 3,829,462
CAPITAL ADJUSTMENTS (2,175,539) (2,289,112) (1,219,335)
TREASURY STOCK (2,047,087) (2,192,449) (1,192,940)
UNREALIZED LOSS ON VALUATION OF
LONG-TERM INVESTMENT SECURITIES (131,322) (99,115) (27,592)
STOCK OPTIONS 2,870 2,452 1,198
===================================================================================================
12
V. APPENDIX -FINANCIAL STATEMENTS OF SK IMT
INCOME STATEMENT
----------------------------------------------------------
(KRW MN) 1Q 03 2002
----------------------------------------------------------
REVENUE 0 0
----------------------------------------------------------
OPERATING EXPENSES 2,647 7,737
----------------------------------------------------------
WAGE AND EMPLOYEE BENEFITS 1,560 3,748
R&D EXPENSES 510 1,921
OTHER 577 2,068
----------------------------------------------------------
OPERATING INCOME -2,647 -7,737
----------------------------------------------------------
NON-OPERATING INCOME 9,097 47,795
----------------------------------------------------------
INTEREST INCOME 7,797 34,214
OTHER 1,300 13,581
----------------------------------------------------------
NON-OPERATING EXPENSES 0 1,265
----------------------------------------------------------
INCOME BEFORE TAXES 6,450 38,792
----------------------------------------------------------
INCOME TAXES 1,529 11,554
----------------------------------------------------------
NET INCOME 4,920 27,238
----------------------------------------------------------
BALANCE SHEET
------------------------------------------------------------------------
(KRW MN) MAR 03 DEC 02
------------------------------------------------------------------------
TOTAL ASSETS 2,221,920 2,238,526
------------------------------------------------------------------------
CURRENT ASSETS 932,781 963,897
------------------------------------------------------------------------
CASH AND MARKETABLE SECURITIES 928,948 958,457
OTHER 3,833 5,440
------------------------------------------------------------------------
INVESTMENT ASSETS 10,101 5,173
------------------------------------------------------------------------
PROPERTY AND EQUIPMENT 9,130 8,529
------------------------------------------------------------------------
INTANGIBLE ASSETS 1,269,534 1,260,928
------------------------------------------------------------------------
SPECTRUM USAGE RIGHTS 1,269,210 1,259,253
OTHER 324 1,675
------------------------------------------------------------------------
LIABILITIES 564,078 584,271
------------------------------------------------------------------------
CURRENT LIABILITIES 2,072 26,164
------------------------------------------------------------------------
ACCRUED EXPENSES 952 25,169
OTHER 1,120 995
------------------------------------------------------------------------
LONG-TERM LIABILITIES 562,006 558,107
------------------------------------------------------------------------
LONG-TERM PAYABLES - OTHER 554,795 551,983
OTHER 7,211 6,124
------------------------------------------------------------------------
SHAREHOLDERS' EQUITY 1,657,843 1,654,255
------------------------------------------------------------------------
CAPITAL STOCK 300,000 300,000
CAPITAL SURPLUS 1,300,020 1,300,020
RETAINED EARNINGS 57,823 54,235
------------------------------------------------------------------------
13
VI. IR CONTACTS
----------------------------------------------------------------------------------------------
IR OFFICE
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MR. TAE-JIN PARK HEAD OF IR TEAM 1 + 82-2) 2121-4212 TJPARK@SKTELECOM.COM
MR. HANS LEE HEAD OF IR TEAM 2 + 82-2) 2121-4514 HANSLEE@SKTELECOM.COM
MR. UK JANG MANAGER + 82-2) 2121-4215 UJANG@SKTELECOM.COM
MR. WOO IL KIM MANAGER + 82-2) 2121-4214 STARRY_KIM@NATE.COM
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THANK YOU
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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
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Name: Sung Hae Cho
Title: Vice President
IR Office
Date: May 20, 2003
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