Q1 2022 SK Telecom Co Ltd Earnings Call

And no I shouldn't you got when they can sell Kid, you shouldn't get up and get contamination, maintaining yeah chicken Baton SK Telecom Italia and she'd be uneven geek she stuck by pure components Kudisch stuck I guess to me that when they are components couldn't SK telecom that population or canceled.

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And I think the NIM can argue about the net IPO at Ivan any notice to keep out on me that come chicken Pita SK telecom, thereby to I guess to me that good morning, and good evening first of all thank you all for joining this conference call and now we will begin the conference out of fiscal year 2022 first quarter earnings.

Sure it's by SK Telecom.

This conference will start with the presentation, followed by a different doesn't have a Q&A session. If you have a question. Please press star one that is star one on your phone dreamed up Q&A.

I wish I commenced a presentation on the fiscal year 2022 first quarter earnings to be judged by SK telecom.

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Good afternoon. This is he didn't tell him I R. L. Like SK Telecom today's conference call will consist of the presentation on the earnings results for Q1 of 2022 and the future management plans and strategic direction by Qimonda, Kim CFO and head of corporate planning followed by a Q&A session.

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Today's conference call will provide consecutive interpretation and we have with us executives from relevant business divisions to help deepen your understanding before we begin we want to remind you that all forward looking statements are subject to change depending on the macroeconomic and market situations. Let me now present our CFO .

North America, SK Telecom CFO , Kim do you want me to.

Good afternoon. This is gene one team's CFO of SK telecom.

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Last year SK Telecom successfully completed its spin off to maximize shareholder value and then announced the launch of escape T 2.0, where we redefined our business centered on five business groups SK Telecom works to maximize total corporate value by developing and implementing strategies of optimized for each.

Each business group to achieve growth of their respective businesses.

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Can we just take a day unless somebody gets me to.

We ask investors and analysts for your continued support and interest for our efforts now let me report on the consolidated financial results of Q1, 2022.

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Consolidated revenue reported for Chilean 277.2 billion won it decreased by 0.5% Q on Q due to the base effect from seasonal sales in Q4, but on a Y O Y basis, it increased by 4%.

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Operating income posted $432 4 billion, one up 15, 5% year on year and 97% here in Q solid earnings growth was driven by multiple factors, including the expanded share of five G. For every new growth supported by growing I P. T V and broadband subscribers impact of Ste.

Well market competition and base effect from seasonal costs recognized in Q4.

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Net income recorded 220.3 billion, one posting a 61, 5% decline year on year, and a 30% decline Q on Q, mainly due to the exclusion of equity method gains from SK, Hynix and base effect, where gains of the sale of S. K Library were recognized in Q1 of 2021.

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On a non consolidated basis revenue grew three 2% year on year and to your 0.1% Q on Q to post three Chilean 77, 4 billion, one operating income and net income reported $356 9 billion, one and 252 billion one respectively.

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Having reported the financial highlights of Q1 of 2022 let me now move on to major it to friends and strategic directions for each business group.

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First both revenue and profitability of fixed and mobile business group continued to improve on the back of five G and I P. T V competitiveness etonian.

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As of the end of Q1 2022 we have 10.88 million five G subscribers, which represents an increase of 1 million from the previous quarter given the current trend. We expect the five G subscriber base to exceed our target of $13 million by the end of the year. The five G penetration rate is likely to surpass.

50% of the total handset subscribers during this year.

Against this backdrop, we will launch various price plans and services to meet the circumstance of five G, becoming mainstream and customer needs becoming more diversified.

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As this year marks the fourth year of five G launch markets stability trend is expected to continue SK telecom aims to maintain efficient market observation refraining from unhealthy marketing competition.

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The number of pay TV subscribers of SK broadband stands at $9 1 billion as of the end of Q1, the pay TV subscriber base growth has been driven by sustained increase in I P. T V subscriber net adds the large paid the large paid TV subscriber base leads to better bargaining power with business partners.

An improved profitability because of economies of scale.

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Media and enterprise businesses continued to enjoy topline growth.

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Cocoa entertainment to meet S. M C. S U I partnership will keep on at all to ensure program Trisha Proto junk consensual depends on 10 resonant contention channel platform. What are you doing on pounds on the topic of chips et cetera.

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So bullish by SK broadband as a multiple program provider in January last year media as celebrated the first anniversary of regular broadcasting in April on channel is 70% of the total programs are exclusive exclusive content through partnerships with Taco Entertainment and S. M. C N C channel.

And strengthening the value chain of media business that includes content channel and platform.

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His careers number one E Commerce company in terms of revenue S case, though our reported sustained growth with Q1 revenue of 89.5 billion won it will develop growth strategies in cooperation with SK ICT family companies to reinforce its market leadership.

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Advertising business is centered on diverse fixed line and wireless media with a combined has equaled 160 million daily views, we plan to apply our sophisticated AI based targeting capability to the advertising business and diversified types of media, including T phone up N P P platform and addressable.

T V to pursue an annual growth rate of 40% for the next four years.

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Moving on to the enterprise business, new data centers and costs on an shakes out we're open in July last year, and they have already secured customer contracts, thereby expecting sustained revenue growth. We're also preparing to open other datacenters in area such as the solo metropolitan area to meet the explosive growth in demand for data set.

Cloud business has also been growing thanks to traffic linked to revenue growth and increasing customer orders as the scope of cloud business continues to expand.

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In addition to promote AI robot based logistics business in March SK Telecom signed a business cooperation agreement with CMS on a robot software company, which includes an equity investment in team and we will work with same as to develop logistics AI robot business.

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For a diverse business, we continue to make efforts to strengthen core capabilities necessary to produce tangible results.

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Our subscription service T Universe has recently produced meaningful results with the number of users, reaching 1 million and G. M. B exceeding 130 billion won in Q1, we will keep strengthening key benefits through expanding the number of items for oversee sorry purchased on 11th Street launch breakthrough of subscription.

Through collaboration with popular brands and offer Personalised prescript subscription products by utilizing AI targeting capability. These are part of our efforts to ensure that subscription service has become a major source of income for SK telecom.

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With and then you're reaching 1.35 million in March.

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At Endo, we could see in February if funds was recognized as a successful five G use case for a telecom company.

Since then we have been receiving inquiries from various global companies for a partnership and we plan to expand globally. This year by offering our service in nearly 80 countries. In April we made an equity investment in morph interactive in meta versus platform developer in Korea to secure our core technologies and development capability.

For a metaverse and beef up our service competitiveness.

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We also plan to launch an open beta service for AI agent, which is a character based agent that shares daily life with customers. It is going to be a b to C. AI service that uses deep learning technology to continue to become personal lives based on customer usage, we will share more details with the market when the service is.

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Finally, let me discuss our shareholder return policy.

SK Telecom agenda can you give me that.

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SK Telecom currently pays dividend quarterly and the total dividend size will be determined within 30% to 40% of EBITDA minus Capex as was announced before the board the time in the first quarter D. P. S. T. B 800 831, okay.

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According to the National customer satisfaction Index released in April 2022 SK Telecom was ranked first for mobile phone service for 25 consecutive years since the launch of N. CSI in 1998 across all business categories. SK Telecom is the first the only company that has been ranked first for 'twenty.

Five consecutive years.

Broadband has been ranked first for broadband Internet and I P T be serviced for 12 consecutive years.

Telecom is making tireless efforts to create meaningful growth in new businesses based on unrivaled competitiveness of the fixed and mobile business.

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Within the framework of S. K T 2.0, we will improve financial performance and create meaningful results for new businesses to enhance corporate value with the goal of maximizing shareholder value. Once again, we ask for your continued support and interest. Thank you.

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We will now begin the Q&A session.

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Pat on the back human nature.

Hope you a lot.

Now Q&A session will begin please press star one did you start in one if you have any questions.

We will be taken according to deal W crash to start at number one.

Cancellation, Please press star two.

And two on your phone.

Tom why don't you manage as you bring in credit Suisse.

The first question will be presented by Kim.

From Credit Suisse. Please go ahead with your question.

Hi, Danielle.

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Good afternoon. This is so young from credit Suisse. Thank you for this opportunity I would like to ask two questions. The first question is that given you're a good performance in the first quarter and the competitive landscape in the industry. We expect that there will be better business performance improvement on a non consolidated basis. So.

I was wondering if there will be any possibility of increasing dividend for 2022 the.

The second question is that now Youre five G subscriber base is expanding and you were doing well in your industry. So when do you think by when do you think this medium and long term <unk> growth trend will sustain any guidance on this topic will be very helpful. Thank you.

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I'm, taking EBITDA minus capex here, some shippers as hush person to diesel peduncles made when it comes down a little bit away from either.

As I mentioned in my presentation, our dividend size is determined within 30% to 40% of EBITDA minus capex because I can tell.

Cause I need two minutes I put down in them.

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When we look at the growth trend of EBITDA, which is a source for dividend payout. We will continue to increase our five to competitiveness in the M. N O a business and we will add more value coming from new businesses. We will also continue to make efforts for cost efficiency, including distribution innovation centered on AI and digital therefore, we.

Belief that our EBITDA size will continue to grow upon many pixels on our fiber coverage you have done that to a quality.

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We still need to make essential investments to expand five G coverage and maintain 15 network quality, but we will execute capex efficient knee through efforts such as joint rollout of five three networks. Therefore, we expect to maintain the growth trend of EBITDA minus Capex, which is the reference point for this year's dividend.

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The annual dividend size will be at the time and in consideration of various sectors, including business performance and cash flow, but we will do our best to make sure that this year's dividend payout will be at least similar to the level of last year.

Five of July it doesn't go down and I'll put something or it isn't and I'll tell you pulling out of market until you have something that Shane Kim Jin sang Kim from majors gives me that.

Regarding your question on the ARPA growth trend based on the five <unk> subscriber growth Mr. Kim Jin Ho head of integrated marketing strategy office will address this question.

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There's one thing I've told you the Smith well Tricia.

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I am Kim Chi how head of integrated marketing strategy Office, Let me answer. Your question currently it is not easy to make predictions.

Oh I'm not this trend because of multiple variables such as the pandemic situation and the percentage of Iot accounts, but reflecting on at 2011 when L. T. He was launched even though we introduced selective discount options in the middle we were able to enjoy the ARPA growth trend for up to five years since the law.

As for five G. We expect that the five G usage period, it's going to be longer and out of L. T E, which means that we can extend the ARPA growth trend for longer than five years actually the handset ARPA has been on the rise since five J lunch. However, the ARPA of figures that we share with the market include low ARPA.

Low ARPA accounts, such as Iot lines and second devices.

Furthermore, acceleration of digitalization in all areas is leading to increasing Iot lines. So I hope that you will consider this aspect and be mindful of that when you look at our our two numbers. Thank you.

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Securities. Please go ahead with your question.

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Hi, Kevin.

Kevin.

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Yeah.

I am Kim manager from this in securities. Thank you for this opportunity I would like to ask two questions. The first question is about your annual outlook what targets for your five year subscriber base. I was wondering if you are going to maintain this annual target of $13 million by the end of the year as you.

And in your presentation, but I've been we can see that there has been some slowdown in the growth trend of five J subscribers and there maybe some issues with price plans. So given these circumstances do you think that you can maintain or you will maintain this annual target of 13 million and what is your outlook on M N O our revenue.

The second question is about the and they know our business growth strategies and also are your strategies in responding to the recent decline in the M. N O handset volume. Thank you.

Now when it comes out.

Okay.

Thank you for your questions.

Sure.

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And so at the end of Q1, five just subscribers grew by more than a million from the previous quarter.

To reach 10.88 million, we've communicated that our annual five just subscriber target its 13 million given the current trend even though there are some macroeconomic uncertainties. We believe that we can achieve this target.

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The Q1, and then no revenue did not grow as much as last quarter due to market operation focused on selective discount options with the launch of flagship devices high demand with the beginning of the school year and seasonal base effect, but you can see that the Q1 and then revenue grew on a year over a base.

By two 2% and we expect that our revenue growth trend will continue.

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Answering your question on our subscriber growth trend outlook and our situation with respect to N V. I know Mr. Kim Chi home head of integrated marketing strategy office will address the question.

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Let me address this question out of the total handset subscribers those share of five just subscribers was 41, 6% at the end of last year, but the figure increased to 45, 9% at the end of first quarter. Given this current trend we expect that the share of five just subscribers of the total hands.

Subscribers is going to reach about 58% by the end of the year.

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Our five G net adds market share exceeded 50%, thanks to effective market responses and we were able to further solidify our five G market leadership.

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Pardon me, we're expanding our <unk> subscriber base and market share effectively and strengthening the subscriber retention efforts and there's also the expectation for roaming revenue I'm grounded that there will be easing of quarantine guidelines. So we expect a stable growth trend of our immuno business.

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Let me now move on to answer your question regarding our position with respect to N V. I know, we have been working hard and considering various strategies and measures to find the right balance between cost prosperity with small envy and nose and or M. N O business growth.

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Okay.

As a mandatory wholesale network provider SK telecom will continue to follow government policies and help develop the N V in one market.

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But at the same time, SK telecom will focus on and they know subscriber retention by offering differentiated customer experiences, including additional benefits on SK telecoms subscription services as well as a trendy membership partnerships and customer centers that provide tailored and professional consulting.

Are not available from N B N O players and by making these efforts we will continue to retain our M N O subscribers.

Tom or Jim when edge.

But in each N D a.

The next question will be presented by <unk> from <unk>. Please go ahead with your question.

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Good morning.

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I am Ito win from our Youtube channel called E trend. Thank you for this opportunity I would like to ask you a couple of more practical questions that have been raised by individual investors in the market. The first is about the possibility of SK telecom being removed from M. S. C. I and I was wondering if the company could provide some more.

Mueller on the current situation. If this is going to happen and if that is going to be the case would be the impact on your business.

The second question is related to price plans recently the presidential transition Committee made proposals regarding our telecom business, which one of them was the introduction of middle Middle end price plans and there are some concerns in the market that this would signal a strengthening of regulations for telecom.

And this is so what is your position on this and what do you think will be the potential impact of this on your business. Thank you.

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No you shouldn't minions and one comes with Remington.

You don't mean from <unk>. Thank you for your questions.

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Chocolate in India.

So yeah, you choose a country to get you into the women's has to tell me you put out or do you need something that they want to automate rebalancing petrol they're kind of thinking of puzzles me the time on pension.

He kept telling me since I know to some degree until somebody told me that he did.

Oh, it's Samuel L. O M S. Jaeger pool was up in the high by our country.

To me that.

As of the end of April foreign ownership of SK telecom exceeded the threshold of 47.16% of M. S. C. I remove all criteria. So SK telecom may be removed from the index at the end of May when rebalancing happens, but such decision is not.

Is based on multiple factors, including qualitative elements. So we will need to wait for the MSC I report to be released on May 13th.

Or if you got to look at me I Miss you choose those countries will kill me all my rebel listing share.

M. A C, which is literally still on them to see what type of need with other novel clinical evidence.

If SK telecom is removed from M. A C I N. They during rebalancing some passive funds that follow what they are linked to MSCI will be outflows.

Oh come on tagging on Saturday.

Telecom it.

MSCI Kenny Peter when he took them getting back to me then.

John J F. K Teleconnect opinion vigilant, he usually will pray blah blah blah.

That is a potential that that cause people to have them to truecar. So she's young at Telemundo.

David or two done what I always say that.

But at the end of August last year, our weight was already adjusted so SK Telecom's weight is currently on the 25% and so market experts predict that the science or the impact of outflow of passive capital would be around 100 billion won.

Oh, it's hung on plenty of pendulum traditionally children placebo check with me because I'm sure you're Gonna tunnel once again little just jumping a coffee table somebody they wouldn't be able to not just looking to deploy that.

Turning them Puddle M. S yard she was a penny Penny pinching juncture young if you grew up in demand.

I just don't know it depends on I wish me, though.

And at the end of at the time of rebalancing last year at the outflow was estimated to be about 900 billion, so compared to that the impact for this time around is going to be much smaller so compared to the MSCI adjustment that we went through last August we cautiously anticipate that the impact this.

I'm around will be much smaller.

I'm going to talk to you about something to do with Pembina and I Miss you. It's useful when you do a.

No one in Tioga pentangle window, one ticket that English people from.

I'm going to pass you pointed it out then.

Bundling and what you're doing.

So forget alumina, Jennifer Panga Muslim Zimbabwe, and she's young age a bunch of things we're doing it because you don't get touched up on messenger Demeter.

I would like to also add that until there are particular methodologies used by MSCI for the index operation and.

Passive funds that follow M. S. C. I also have their own operational rules. Therefore, what I communicated with you is based on our best estimates I'd like to remind you of that thank you.

Towards your legitimate I shouldn't probably I'm going to have them do their somebody somebody gets me there.

Let me now move on to your question regarding our medium and our price plans.

Because I don't know how to Cook again did you dummy young pattern, because if I have to try to treat them with come up total codell tying on Johan Sverdrup comes out with a meter.

SK telecom is considering various price options and plans and consideration of customers' needs usage patterns and five just subscriber growth trend.

So you go into a five year launching once you go past those types of other big wheel Pro community Hospital, you mean total pounds, how long useful because why would you subject.

They really haven't done their.

Tying in Yoakum dates for Shannon tends not only understand what was incremental.

We have entered the fourth year of five G lunch and the penetration rate of five Gs already more than 40%. It really shows that five G has become mainstream therefore, we believe it is a natural phenomenon for more price plans to come out in the market.

So I would just obviously got dominant on services and just how long until we get something that is a quick one on yoga.

Total comfort Smith.

Because five G is no dominant in the market in order to expand our customers choices for various price plans saga SK Telecom will continue to consider various price options for our customers.

Thank you.

[noise] Pamela J managers have been in <unk>.

The next question will be presented by Kim <unk> from Kb Securities. Please go ahead with your question.

Yeah. She engages all I'm trying to duck QB two conclusions.

Oh Hello.

Hope you guys hope comes into play it's always Camille.

Okay Cool alright.

Alright.

Oh, you do try to plug a U K E.

Because you've told me they don't Homegoods.

Oh, you're talking deal.

So he just kicked me local Managua, who all will be the only real actually most likely.

He goes as hoped.

Now you're lucky.

There is still no neuropathy and Joe you too Yeah. He was telling me and then I'll continue to go to the computer actually do some cultural foundation.

Huh.

I am Kim Jin sang from Kb Securities. Thank you for this opportunity I would like to ask two questions. One regarding your IDC business and the other about your AI business.

First of all about your data center business I understand that there is a shortage of supply for data center capacity.

I was wondering what kinds of strategies do you have at SK telecom to secure additional data center capacity.

Secondly, about AI business I understand you call. This a diverse when do you think I would we be able to have substantial revenue and operating profit coming out of this AI first business and how do you think this will contribute to strengthening the competitiveness of your <unk> business.

Hmm.

Tim One comes on me there.

So it doesn't want to take them out that have been at or equal data center. They probably didn't then Jim Malone to escape rather than the corporate planning time diminishing pop tunes up something that gives them a tough winter in Colombia.

Thank you for your questions I'm going to cover your question regarding I first and so Mr Park Jong silk CFO and head of corporate planning of SK broadband is going to discuss strategies regarding data center.

Well there most of them didn't go to them and so kudos everything to travel.

So clip on me and you play Internet tongue of tissue that you spoke to or younger than yourself or to do a gut check one thing about a young that type of same unit pick some people in melanoma cells to me, though.

Since launched last year, our subscription service T universe, and our Med affairs platform, if land have been increasing their use users and recently the number of T. Universe users has exceeded 1 million and my diverse has more than 1.35 million M of use.

To address in a younger opinions on what part of your color in Chicago, Some formula and nobody can come on and there are a couple weeks.

He put into known Kevin on your content to flip hunger and FDA blockchain can you sort of give on it can you just used temperature and goodness.

How much of a chunky she junked and you can get it on my cell phone kept you can hook associated to Petra Nova Kimberly Smith.

T universe has been improving our user convenience rapidly and it has been preparing for a product lineups to to offer them more or more competitive product lineups and for if land, we're preparing to introduce open content platform and an F T and block chain technology based economics.

And so by making diesel effort. So we will go beyond the market entry phase to expand these businesses in full swing.

Kudoka med stop us of a problem than I ever could have any children, usually billionaire he tunnel west Virginia, Okay sounds good.

But.

You don't get you some jet ski and beach undergraduates and stuff.

[noise] Iva business group that includes subscription and motor versus revenue in 'twenty 'twenty. One was about 200 billion won and our goal and vision is to increase this number to two trillion won by 2025.

Kudoka amid tougher modal.

Capex of about on it.

Because you're going to come back on Firebird and pillar critical contact center cooling system than.

Billings you still got the market thinks that's not an acute bundle, sometimes javier so type jokes I'm going to fix some of those costs.

Kudos on their type of service, you're about to someday get tangled up with a plan to doing it yourself you must I'm talking telco. Okay to learn you have seen the infection. So you won the lottery that because it'll kido with them either.

Both subscription and matter versus services do not require massive capex, but they are growth businesses that are built upon the foundation of our strong five G infrastructure and marketing assets, including contact Center and building systems. Therefore, we believe that expanded user base will lead to better Pos.

Ability and in the long run we expect that.

Subscription and better risk businesses will become key sources of profit for SK telecom, along with fixed and mobile business.

Well it comes yourself come to your question because I got two minutes with you.

And the tools you have some of them I'm sorry hang on it.

Can you just told me that because certainly there was some either.

Moving on to the contribution of AI first businesses to our minerals business are we are confident that utilization and growth of its blend and T universe are going to contribute and strengthen or M. N O business made up of single cause of other sort of jumped out of pattern. They took on younger pay paradigms.

And the rest of our chemical.

Fiber deep holes will be clunky I can tell you. It was one five at your service took a production open until you go through because sort of think of alumina.

More usage of meta versus features and functions will increase demand for more stable and faster networks and demand for data.

So these will facilitate the expansion of five G services and this will also provide an opportunity for more attention to be given to our excellent quality five key services.

We don't know if she T. Membership question points are coming from but somehow I was I'm glad you called quake that type of thing come home until when I'm, putting a service that I tried to make it cause I don't say this because I'm getting a coke I'm going on in a study that of course at all.

Furthermore, subscription services will offer differentiated experiences for our customers through synergies with team membership by having these representatives services, we believe that our service will become even more competitive.

And so some years it doesn't have to send over there so perhaps doing some fantastic because it just gets me to.

Concerning your question regarding our IDC business, Mr. Pester them yourself CFO of SK broadband will address the question.

Yeah, guys capable vendors ship opportunities of them done either.

Data centers all of it is to look at how long it is because.

Because to me the new data center, all critical public clouds is huge and got all the things I'm going to use in the nation either.

And then they doesn't that kept other tissue cocktail solvay canola I'm thinking a little children and so we don't know exactly what used to be done.

I am talking to himself CFO of SK broadband, let me provide you with some information on our current status and strategy as there is increasing demand for traffic and also usage of public cloud, we expect that demand for data center capacity will continues to increase therefore, we are planning to.

Increase our size and also competitiveness.

So just sticking on that topic of synthetic meter shuttle coastal Congo, Suncal, noting chamber tool.

It is interesting if you could choose to.

To put it to Paolo you didn't make a single killed okay. We can do that.

Kearney SK telecom its operating five data centers in the solar and surrounding Metropolitan area and Additionally, we're planning to expand the datacenter capacities in the metropolitan area as well as in the Pusan area, thereby securing more than about 200 megawatts of IP I T power.

And yet even get close took when that person megawatt turnkey data center you can do another one book to give.

Neither one is when you don't even if it's okay, we'll be okay.

What would you see like I'm again, because I'm going to get us into talking about adults and children can always MELA comes I'm done.

So in Q1, we were already in the process of developing a data center in the sold them at surrounding Metropolitan area, which will be the size of 80 megawatts, which are scheduled to be operating in 2026.

In addition, we are pursuing a data center capacity in the Pusan area by utilizing SK telecom submarine cable and interconnection with Asia hub data Center.

Okay.

Tom what are the German edgy shaping in HSBC.

And the next question.

Western will be presented by Neale Anderson from HSBC. Please go ahead with your question.

Thank you very much good afternoon.

Similar question to the previous one S. K program. Please.

Really I want to ask about two things. The first is cost synergies. Following the people integration can we expect any more development.

Secondly, it's about the timing of the revenues and the costs. So you mentioned the development of the data center business.

Can you talk a little bit more about the cost side of that and.

Whether you were seeing increasing demand pool for staff and other taxes that might lead to cost inflation. Thank you.

Okay.

HSBC, Neil and they're sending me. That's you won't you incubate yourselves that kind of tells me that I'm, so sorry to the Moon and I'll, let Don go quite dispensary monetary the rockettes to meet Oh escape rather than do a handshake to key it wont get it you know you do E G. But you got to you when they come into any Boston G. By some interesting around kind of obvious to me that people take.

Fantastic.

Some attrition in that data center in Chicago.

They appear to.

Closer to your site in India grew up at all so that Youll get them hooked border told me. It's L. E. Bianchi money, so sorry inflation, who would be you mentioned gogo with anybody when you do that you can come out of beta.

And then came on it comes on me the escape route of ambition Takako, London Malone escaped the corporate planning some finishing Papa Johns Hopkins doesn't cause that type of thing. It just gets me to.

Thank you for your question. So for these questions Mr. Perhaps yourself CFO of SK broadband will address them.

Okay.

Good.

And that's because a it's good wind and prevent the ship hold someone's looking to do that.

Oh, well, let's keep moving to even just helps them quite as all the children are country really this one doesn't know what it gives me though.

I am talking to himself CFO of SK broadband, let me first elaborate more on the revenue and the revenue and cost drivers for the Q1.

I wonder if he should be here, you're going to get my children. Equally then youll see about one at all.

Just to go a bit give yourself, some downward or tenant only that'd be telling you put into sometimes how.

How about you won't be giggling about continuing to grow our contribution got some little thing you should be you don't want it.

So putting guns.

First of all for our business performance in the first quarter. Our revenue was a the total revenue was <unk> one trillion <unk> 26 billion won so it was an increase of six 2% year on year because of I P. TV subscriber growth and B to B business growth. However, when it comes to the operating profit or there was a slight.

Slowdown in the growth due to the marketing costs and depreciation effect. So the operating profit was $76 1 billion won.

Yeah.

Very good help Julien a petition obviously naive T V.

Isn't it.

To be as hoped it because I thought it was.

Somebody asked me the one to activate those my son, Damien excuse me in NN group.

Each month the problem. So it wasn't doing them as you did with Hudson.

Controls I'm going to cover some either between their two daughters, and then there'll be time to put into some guys meter.

When you look at the breakdown of our SK broadband business, though they it has three components. The first one is b to C business, which is a P. T E which includes a P. T V and the second is all high speed broadband and the third is b to B business as for the first one would be to see business in the first quarter. The I P T.

Subscriber growth was up about 109000 people, which was actually number one in terms of IP to be net adds market share and are the sales or revenue grew by six 6%.

I want to also be in tonnage.

[noise] towards maintenance lobbies and N type doesn't color congratulation there used to be in between so it tends to be mutually Thomas I'll put them into some of their lives.

And moving onto the second business line, which is broadband internet of things to subscriber growth and keep our internet related promotion, we were able to achieve one 4% growth of revenue year on year.

But curious how many children.

Sometimes you'll get killed as long as our solution, Okay, just checking chingola muffins.

Certainly it does help.

Well, sometimes little to none can either be put into sometimes Hudson Beth.

Moving on to our final division of business, which is b to be in addition to the growth of our dedicated line of businesses and solutions businesses for our business customers. There was also a growth in our data center business. Therefore, the revenue from this portion of the business increased by 14% on a year over year basis.

Yeah, My mother used to be.

Unchanged until money either.

I'm going to loosen some of them. So you think will take us until sold.

Particularly solid with shipping sometime in humans.

Oh My children was interesting because I mean, it would be you're going to need to become joins Tonight.

Can always meet up.

And as for our outlook for the entire ear of 2022 based on continued I P. T V subscriber growth and growth in B to B business, including data Center business, we expect 5% growth of revenue on a year over year basis, and operating profit growth that is similar to last year.

Yeah, it's all of them.

Doesn't the so called and then Uh huh.

Sometimes I envy champion.

So if I look at my son's because to me though.

Next I'd like to discuss the cluster impact coming from data center expansion.

They thought Santana and thinking about the struggles fund in its hospital when I'm talking when you're on food I mean to me it'll be stretching too much not too quick.

Do you have to pay online to shop on the secret of Kentucky's meter.

Because data center business requires massive amounts of investment. So we are pursuing efficient execution of our investments as well as hedging for financial risks.

And so I'll go Newman between an.

And but the only thing I could get stretched out before but don't count on what that sort of thing which comes into it all sounds good.

And then through someone there to Shannon is be sure terrorists.

To us I'm getting I'm, telling you I wish I could I wish me that.

As for our data centers in cotton and corn down Oh, we have a certain arrangements with them a real estate fund S. P. CS and also a real estate based.

C Corps security. Therefore, these are long term visa arrangements are in a stable manner.

You don't put up unless you go to central control.

Just got to study younger they've seen them some data to move them on it that's all I have somehow being one that is scheduled always hungry to imagine.

Nonetheless, he could ask me that.

By utilizing these investment arrangements, we were able to reduce financial burdens on it making massive amounts of investments for D C or data center construction and by utilizing Trc arrangement, we're able to reduce lease costs.

Oh, I'm, sorry, it's almost always looks a little bit of Sunday, we saw good terrorists.

Well just have to set a time, particularly coming on and goes out there. So I mean to the control group.

To me, though.

In addition, as our financial situation is continuing to improve we will not only continue to utilize a TR as arrangement, but also making some direct investments as well.

Thank you.

Oh Q1.

Yeah.

So it wouldn't take evolution than when you took it shouldn't go younger accumulation when your.

Do you see that.

Oh, she going along as uncle Humbling Sherman.

I guess to me, though I.

I guess in Utah.

That's another acumen that you're keeping in patients in <unk>.

The last question will be presented by Jae Kim from <unk> Securities. Please go ahead with your question.

Because you guys have been talking about.

With that let's talk so I heard you wrong.

Sure Joe.

Hum.

And I was just wondering if it took pretty real.

Just wondering if you can go to or you're having to choose.

I'm sorry.

Okay.

I am Kim at Jay from patient Securities I would like to ask some follow up questions, especially on a matter of US what is your specific plan on overseas expansion of meta versus services, what is the timeline and schedule and what will be your main business model.

The Kingman comes on me the what do you mean, you done yet until you get a bit tougher. This horrible leader will get you in the toughest shoot I'm talking young men's up sometimes there's hardly ever wish him to young don't think is a cleanup.

That's been interesting for me to.

Thank you for your question Oh here with US we have Mr. Young men's health head of meta versus company. So he's going to provide answers to your question.

Does anyone wish and visions of concomitant, even clear concerns it can be done.

First I'd like to thank you for your questions.

So I'm gonna so hopefully it on them you put into it actually got to argue is even because you know them well you can go out and commit community can alert when she model. So this will cause some cool you won't be you and them or popular form Congress. He assembled a ton that you can go get under each one of them for sure.

What is the most beautiful children pushing me, though.

On as far our eastland or meta versus business, we're trying to strengthen our core value, which is communication. So in the first quarter, we have improved meeting related and community related services. After the second quarter and we will add the open platform and if economic system. So that we can create.

A social meta versus world and a real sense.

A popular football player about pillar I'm Gonna. It took 10 months equal crypto congestion, Tim will keep on the role longer condenser, Craig I'll comment on Sunday So.

How long, yeah, Hudson, who gets interrupted kick in either.

So now users will be able to create their own avatars in spaces and by utilizing crypto currencies you spend there will be able to trade and invest in content and going forward, we're going to expand our service to more than 80 countries.

You put into a globally known goes on the road to them, but I don't go glad Tom teach Nippon who shouldn't jewelry, but I don't look I shouldn't go to Korea.

Did your local cluttered zone his uncle <unk> hundred per ton of wash them no Cozener KOL marketing.

Localization of hundreds of yellow rose.

Uh huh.

Or English version of it find will be launched in as many countries as possible and after this abroad expansion, we're going to identify key markets and we will work with our local partners for joint marketing and localization efforts.

So you put into them and gives them a good on them to help their children because none of them give on young politte pulmonary coupon it all PS.

Most of it or.

Could you kind of English and will now open platform doing dishes and Oh.

Oh, gosh tennis shoes, and boots, So I won't give you a little literally passing how it goes little qdoba with some stuff comes out of that.

Our short term goal for if land is to increase the number of users and in the medium to long term, we want to build and and and utilize our business model based on the open platform.

So in the long run it by utilizing the open platform and economic system, we're going to build and implement our business model from which we'll be able to enjoy revenue generation.

Yeah.

Yeah, I'm, telling me the grub.

From a Q&A session, where you'll get a hold of them react real challenges.

She'd been young did it wouldn't be you should still get the unconfirmed kudrun well do much to do I guess comes on me, though.

Thank you with this we would like to wrap up the Q&A portion of the earnings conference call for the first quarter of 2022 of SK Telecom and thank you for your participation.

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