Q2 2022 SK Telecom Co Ltd Earnings Call
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Good morning, and good evening first of all thank you all for joining this conference call and now we'll begin the conference of the fiscal year 2022 second quarter earnings results by SK Telecom.
This conference will start with a presentation followed by a divisional Q&A session. If you have a question. Please press star one that has started and one on your phone and during the Q&A.
Now we shall commence the presentation on the fiscal year 2022 second quarter are nice results by SK Telecom.
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And I was thinking when Theyre SK Telecom has stepped up I feel comprised quit attempts will cause you should notice.
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Good afternoon.
Joe I R O of SK telecom. Thank you for joining SK Telecom's core earnings conference call.
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We are providing consecutive interpretation for the call, which will consist of the presentation on Q2 earnings highlights future business plans and strategic direction.
Q&A session.
And what are you studying in SK Telecom's CFO Kim upgrade planning come down you shouldn't cause you don't sense I tell my people tell us.
Hope you're.
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The call is attended by our executives from relevant business divisions, including Jinan, Kim CFO and head of corporate planning team of SK Telecom.
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Before we begin I would like to remind you that all forward looking statements are subject to change depending on market situations are crumbs, if we must amicus neither.
Let me now present our CFO .
SK Telecom safe welcome to know what you mean.
Good afternoon. This is keen on teams CFO of SK telecom.
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SK Telecom signed a stock swap deal with Hana financial group in July to exchange shares worth over 400 billion won and formed a strategic partnership.
The partnership is significant as it marks the beginning of hyper collaboration between SK ICT family companies and Hana financial group in a wide range of areas, including ITT and finance under the framework of S. K P 2.0.
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We will pursue strategic cooperation with Hana financial group in six areas, including digital transformation of finance and development of new business models, utilizing telecom and finance data, we aim to innovate value for customers through convergence along various services.
Remember, Joe and Tony should be nothing even get I'm getting I'm wondering figured there most of them did against them okay.
Now let me report on the consolidated financial results for the second quarter of 2022.
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Consolidated revenue reported for Trulia, and 289.9 billion, one up 4% year over year, and 0.3% Q O Q, Yeah, maybe even five would you tell you Tony any marketing Brandon Hey, guys, they're going to just keep telling you name it.
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Operating income posted $459 6 billion won up 16.6, 16, 1% year over year, primarily driven by the end of the accounting recognition of marketing expenses incurred at the beginning of five G rollout. It grew by six 3% you don't you mainly because of the eliminating of.
One off labor costs related to staff bonuses.
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Net income came in at $258 1 billion, one posting a 67, 6% decline year over year they need.
Excluding equity method gains from SK hynix, but it grew by 17.2% Q O Q.
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On a non consolidated basis revenue grew three 2% year over year, and 1.3% Q O Q to post three trillion $118 2 billion, one operating income and net income reported 389 billion, one and $224 5 billion one respectively.
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As five G became the major network in the industry with five G penetration rate, reaching 50%. We've made a preemptive move of introducing five new five G price plans on August 5th to offer more choices to customers as of the end of Q2 or five G subscribers stand at 11.68.
As more customers can enjoy five G services with the new price plans. We believe that we can reach our goal of 13 million five G subscribers by the end of the year.
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The pay TV subscribers of SK broadband reached 917 million as of the end of Q2 going forward, we expect content sales to recover as the pay TV subscriber base continues to expand in new movies are being released with the easing of COVID-19 related restrictions.
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Utilization rate growth is on track for the new data centers that opened in class on and she saw in July last year, which is expected to bring about sustained revenue growth.
Operations to open additional datacenters in area, such as Seoul Metropolitan area in Tucson are well underway.
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As for our cloud business, we focus on MSP services that all for specialized solutions, primarily based on our in network competitiveness and capabilities on M. S E AI and big data the strategic partnership with Hana Financial group is expected to accelerate mutual cooperation in areas, including.
Digital transformation of finance.
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A new growing AI service named eight Dot was launched in May as an open beta version. It aims to be a daily digital me. They can have human like conversation with customers. In addition to the media and daily information services already available a dot TV and eat that game were recently launched.
With many more useful services to be released going forward, especially aegon will evolve as a service that offers more valuable experiences in terms of communication, which is the killer feature of mobile and foundation of SK Telecom services.
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Moving onto T Universe Universe has life focused on daily benefits and universe has been centered on online shopping benefits were launched in late June and July respectively. In the second half of this year new functions, such as sharing and gifting will also be added as part of our efforts to expand the subs.
Christian product lineup and customer convenience.
By enhancing usage value of customers going forward T universe will reinforce its position as a subscription commerce platform focused on four pillars of action, namely product diversification customer experience innovation marketing based on the a and D T and business model expansion.
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Celebrating the first anniversary in July Eastland recorded $8 7 million cumulative downloads at the end of Q2. The platform is attracting millennials and Gen Z like connecting all fine and my diverse exhibitions to maximize customer's viewing experiences and by making various attempts like piloting innovative.
Concert models. We are also working for a gradual expansion into the global market in the second half of the year through close cooperation with leading telecom companies and major regions, including Europe , North America, the Middle East and Asia.
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Yes.
Finally for shareholder return the board a tremendous second quarter D. P. S to be the same as Q1 at 831.
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We're doing our best to improve financial performance and produce results from new businesses. My building diverse partnerships under the framework of S. K T 2.0, we will make sure that these efforts will result in maximizing corporate value and shareholder value.
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It comes out of that we ask for your continued support and encouragement. Thank you.
They call them chicken with Tau Q&A session. There are still cut that'll help us Anita.
We will now begin the Q&A session.
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Now Q&A session will begin please press star one that is started in one if you have any questions questions will be taken according to the order you have pressed a number started one for cancellation. Please press star two that is starting to on your phone.
Moodle, it's human nature as you put in she can't go too bad you send young you mean Nader.
The first question will be provided by Sean Lee from Citigroup. Please go ahead with your question.
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I'm, Sean Lee from Citigroup. Thank you for taking my questions I have two questions. The first question is related to your new five G. Price plans can you provide us with some more information about the background behind introducing these new price plans and what is your estimation of the impact of such new price plans on your revenue.
The second question is about the outlook for the second half of the year. So what is your understanding of the marketing landscape of the industry going forward and what is your you are planning for it expense management. Thank you.
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Thank you for the question before I address your questions I'd like to remind you that we have executives from the relevant business divisions, including subscription a meta versus M. N O and integrated marketing. We also have CFO of SK broadband and other executives from the relevant divisions, so if I'm deemed necessary.
I'm going to hand over to these executives for the answers.
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Regarding the new five Oh Gee price plans on August 5th we launched five new five new price plans that include two ontic plants.
Importantly, it is obesity luncheon in New York.
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Whenever we have new network rollout as the number of subscribers increase it is very natural that we offer them more they're more diverse price plans.
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As I mentioned in the beginning of my presentation. The five G market is becoming more mature with five G subscribers, taking up more than 50% of the total handset subscribers. As a result, we concluded that there should be more diverse price plus they can cater to different data usages and cluster my preferences and as a result.
We introduced a diverse price plans, including low medium and high end price plans and online only plans in order to offer more choices for our customers.
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Now I would like to hand over to Mr. Kimzey hung head of integrated marketing strategy office, who will discuss the details and expected benefits.
And it has its own market things are no convention Julien.
Hello, I am Kenji home head of integrated marketing strategy office.
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First of all as far as the regular five two plants. We have 49 price plan that offers eight gigabytes of data and 59 price plan that offers 24 gigabytes of data and 99 price plan that offers daily essential service benefits and unlimited data. So as a result, we have a five G price.
Glenn lineup that covers the price range of 48001, all the way to 100001, we'd be interval of 10001.
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The two new online only or on tact price plans include on page 34 that offers eight gigabytes of data and on Tech 42 that offers 24 gigabytes of data.
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With these new five G price plans, we expect and now customers can enjoy more diverse and economic plan choices in terms of price data and benefits and as a result, we expect that the five G subscriber base will continue to grow.
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Joe.
I understand that there was a question about the potential impact of price plans on our pool. So can you elaborate more on that.
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Summing it up.
So as you can see we now have more price plans for low and medium end compared to before.
Please go ahead.
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I'm Gonna L T homes every day.
Using your product.
Yeah.
As a consequence, some customers may downgrade their price plans, depending on their data usage and other customers may upgrade their price plans, depending on the increased trend of data usage and what is even more important is that we expect five G migration to be accelerated as now LTE users can choose more price plan.
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Uh huh.
Well, that's all as far as their impact on our revenue trend because all five price plans were launched all at once we believe that we can share with you more details after we get more data from actual customer feedback and usage patterns.
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Okay.
Based on the new five G pipe price plans that offer more choices for our customers will continue to expand or if Iot network and improve our services and offer a more convenient and useful services and as a result, we will continue to make sure that five G becomes mainstream and sustain our M N O growth.
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Now moving on to the second question regarding our marketing expenses in the overall landscape for the second quarter marketing expenses grew slightly quarter over quarter due to the increase in AD expenses, but as we previously communicated with respect to the middle market operation and then a related marketing fees has been.
Mining since the third quarter of last year.
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600.
Thanks, gentlemen.
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Okay.
And as for the second half of this year, we will continue the trend of market stabilization and cost reduction and we will reinforce the downward trend of marketing expenses through efficient market.
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Now regarding the overall industry and market landscape, Mr. Kim Jin head of integrated marketing strategy office will provide more details.
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Recently, the market landscape has seen a pretty stable.
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And in addition, the total number of five just subscribers has reached 24 million in Korea and fight your market is becoming more mature as a result, we see that there's very low likelihood of competition heating up again to attract five G subscribers.
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Earlier this year there was a flagship handset launch and the market was quite stable. So along the same line. There is another at flagship handset launch expected or scheduled in mid August and we do not expect the market to heat up once again.
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Ah recently SK telecom has been focusing on strengthening the competitiveness of our products and services that cater to our customers' needs. One it is.
One example is launching these new five do you price plans and likewise, we will continue to maintain our position in D C market.
Tom would or two minute just your opinion.
<unk> didn't go in here can you just sum you mean meter. The following question will be presented by Kim from Kb Securities. Please go ahead with your question.
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Correct.
Yes.
I'm Kim Jin sang from S. Kb Securities I I have two questions. The first question is related to the monetization of fund and the second question is related to your partnership with Honda Financial group. So regarding the first question in June SK Telecom and communicated with the market specific monetization models for.
Excellent. So I wonder if there's been any change in terms of the priorities of such monetization models and if you are planning to work on any new monetization models, where business models. The second question is regarding your partnership with Hana financial group them in the presentation CFO mentioned that there are six particular areas.
Where the two parties will cooperate so I'd like to learn more about the specific plans for cooperation and that will help me better understand this partnership. Thank you.
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Regarding your first question about Eastland I'd like to hand over to Mr. Yang Ming So I'll kind of meta versus company for answers and then I'm going to cover the second question.
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Up to this point our priority for insulin has been expanding their user base now and we will soon enter this stage of monetization by utilizing their user base.
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And so I'll need to be areas, we have been generating and call them by holding corporate events, and creating avatars and specious going forward, we're going to plan for monetization through various functions, including the function of sponsoring creators that host meetings are function of trading avatars in space creations and in service advertising.
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One example in the third quarter of this year, we're going to offer point to sponsors and participation as bonuses and these points can later be used for if land services and in addition, we're going to add more elements of the eastland equal just.
Lend economic system.
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Also in order to link virtual goods inside if land with real world value, we're planning to introduce a crypto economic system in connection with SK coin and we will provide support so that if land can be common important service that helps to develop the ecosystem of S. K coin.
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So this crypto economic system will be one element of many parts of their crews.
The economic system, and we're going to continue to closely monitor the market because we want to launch the crypto economic system at the optimal time when the effect of introducing if land crypto system can be maximized cause somebody that thank you.
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Gotcha.
Okay. Good to hear my sense that it gives to me that now.
Now I'd like to discuss the background behind establishing a strategic partnership with Hana financial group and our future plans.
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SK Telecom has been quiet collaborating with Hana financial group are in many areas starting with our Hanau called joined fund Kona card joint venture in 2010, and including various partnership cards and be business development or business models, we were able to produce good results.
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But at the same time as you may know very well the telecommunications industry and the financial industry has been going through many changes in particular as for the telecommunications market, we have new players, including charcoal and neighbor that are competing with us and in the financial sector. There is an urgent need and challenge for digital transfer.
Asian against this background there was a common recognition between SK telecom and Hana financial group for a need to form a new partnership.
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Right.
In that sense. This strategic partnership is very meaningful that it is it goes beyond the scope of cooperating just for credit card business, but rather to create a framework that allows us to cooperate in a wide range of areas that enables comprehensive cooperation between SK ICT family companies and.
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We see that there are many areas for cooperation first of all we can build financial services based on AI and cloud to accelerate digital transformation of finance and secondly, we can and develop new business models by combining telecom and finance data as you may know data.
It's becoming more important and there are many data driven services. So this is an area that we can cooperate. In addition, we can integrate products and services tailored for customers of SK Telecom at Hanmi financial group and utilize the infrastructure of join me and we can conduct joint marketing based on digital technology and we can also pursue cooperation.
ESG management.
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We will not just remain in self strategic partners on paper, we're going to strengthen our engage mutual engagement to produce tangible results for that we are going to form and operate a synergy of consultative body that is attended by key executives from the two parties and we're going to come up with concrete plans.
All our cooperation.
It sounds like things are though because when they say you got to be something going on so I will just hop when there's sometimes a moment I'm going to combine a Toyota partnership with plenty of attention in Congress can in kindergarten through <unk>, it's up to them.
That occasion.
And with that.
On our part SK Telecom will actively utilize this strategic partnership with Hana financial group. So that we can strengthen the growth momentum of the five business groups that we have defined earlier this year.
Thank you.
Tom literally two minutes as you bring in patients in coronary accumulates in human data.
The following question will be presented by Jae Kim from <unk> Securities. Please go ahead with your question.
Yes, I guess, you could issue a confusing them.
In one particular deal.
Choose you want them to do.
And then did you have anything.
I mean, you don't see them being him go.
Great.
It's your trader I would actually tell number Michael.
Yeah.
The ones, who can pay them quite well.
Yeah.
Perfect.
Yeah.
Oh, you're going to come.
We would actually equal Patricia coojong extending deal.
What is it.
Oh cool pool.
Uhm.
Oh yeah.
Yeah.
Got it.
Okay, I'm going to give that guidance.
I'm talking about.
Yeah.
I am Kim Hoi Jae from <unk> Securities I would like to ask two questions. The first question is related to U R. T universe business and I'd like to get some more updates when I look at the presentation material. It only gives us numbers about M. A U N G. N V. So can you share with US your revenue protection and a current.
Every new trend. The second question is related to your dividend payout a euro D. P. S has been set at 831 for the first quarter as well as the second quarter and this is the same level of level as last year and this is what we consider the minimum guarantee of dividend that we expect from SK telecom.
As we see there's upside potential for your earnings and also if you take into account the dividend income coming from Hana Financial group I believe that there is an upside potential for a dividend payout. So what is can you give us the overall guidance for the annual dividend payout. Thank you.
It was on two docks alcohol units on it until you can kind of tell me I'll get you an engine doing could open market, sometimes done careful penetration will pay them off and you hear it I got up into the Rockies for me, though.
Thank you for the questions. The first question regarding the T universe will be addressed by Mr. E. N J O head of subscription service marketing office, and then I will cover the second question.
I know things got put them up getting them done doing me, though.
Hello, I am Ian Jones head of subscription service marketing office.
Was the youngest sometimes they'll jamba did in young children and you should really unparalleled launching on the rule when tissue Cumani, even came out of it. So it sounds like you didn't really a big issue.
Thank you Don.
D. T Universe was launched in August 2021 and in just 10 months at the end of second quarter. Our T University users reached $1 2 million.
Susan in terms of attrition at the Nuc therapy function. So obviously junior so cousin, who can we give them a little you won't go to hooked up and then they will give just haven't got you to go to places where the consulting.
Some of them.
As you can see the user base growth of tea University is the highest among all of the non telecom services that SK Telecom has launched so far so we expect significant growth going forward by enhancing usage value for our customers.
Yeah.
It was something that isn't in Puget sound.
Thank you Bonnie we do Pisolite pool ecommerce to continue to persist longer term tenants come from door Trudell Tricia Smith.
And as for our product offerings last month, we introduced universe past life focused on daily benefits and universe pass Flynn I, which is focused on online shopping.
But how about in gaming from yoga, because it'll turn comes from Rockies being trained some comedy isn't doing and then you've got tens haven't got such a little 20. So tell me talk cause hometown Uchida there was some though.
And in the second half of this year, we plan to add more convenient features such as sharing and gifting, which are expected to bring about more significant growth in the future by creating more value for our customers like I mentioned I think she can be wrong, but switching goodness and then kudos on he can.
And how long ago, Jim because Tony pivotal part and then deal, especially I know you mentioned October two junior anchor two hapoel heavily spender.
And moving on to the size of the business. So the subscription business that's been producing meaningful results since its launch with a G. N V. Surpassing 200 260 billion won in the first half of the year.
But children.
And you don't envision to have triggered all group how we yeah. Yeah, you did some 10 transaction, yet and you're already putting the COVID-19 minutes not totally immune cousin don't persist for some time.
As for the sales revenue, we see a 1.5 fold track of growth and this does not include not just the one off sales, but it includes mostly recurring sales. So it is quite significant.
What was the root cause China to me answer them in offline, you too long or too Hon more contact center toward the T membership sort of only about 10 P. M in China between E X how should we be prudent.
Yeah.
And moving onto the district distribution channel of the subscription through online channels, such as contact Center T World T membership and 11th Street account for about 42%.
Well you should stay with the touch PGE oops people, probably as long as it goes.
He says I'll be there I mean, I'm trying to get someone said that things seem a little crazy erosion level bushes to go buy something.
And customers in their twenty's, all the way to the forties continue to account for more than 65%. So these figures show that young customers have been signing up for T. Universe made me through online channels.
What do you go to unpopular.
I mean, you should get are you telling them towards part of hip cool pool, which you talked to it a little pickup in NIM due to get to turnaround and it is how long it took up telling them. How cool you do you think it would be on some of them even looking at 10 hours from that.
And as for T University partnerships, the number of partners husband, surpassing 60, and we've been expanding the scope and breadth of benefits and among the partners, there's very strong demand and preferences for benefits related to daily lives and the media benefits you don't even know it.
Thank you.
Yes or no.
And then maybe there's something out there that.
Oh, I guess for me, though.
Now I'd like to comment about the question regarding using dividend gains from Hana financial group as part of SK telecoms dividend payout.
Kicked into the money as I know I'm glad it until like a partnership with Australia, you must something I'm trying to do.
Hum.
Tim would you again, you're taking two minutes of combined T. J can have immediate tenant at one time and you don't know how to Ocado Tricia.
Pneumonia due tricia little pocket of money is going to pay down your thoughts on how to cut away. So they don't need and then I'm not sure. If I can get you can mitigate I'm curious to me though.
I discuss the significance of strategic partnership with Hana Financial group and when we take a look at the financial impact of this deal I can see that we used to hold shares of Hana card. This does not to pay dividends and now these were exchanged with the shares of Hana Financial Group Holdings.
They pay dividends.
Well intended Tricia, maybe it's an angry at him a name or talk on commodities and doing most I'm doing well.
I'll now cover how long from noon to drill pads anytime you end up giving it to them as I'm, sometimes asked me the rest of the chicken tender young being an interesting maybe promoters hungry man well how come you talk when you get rid of the you'd be able to get them done pay downs and pay them see what would you be able to discuss them either.
Kearney those stock swap deal is underway. So I cannot give you the exact amount, but last year. The D. P S where Honda financial group was 3101 per share so given that given that as a reference point. We can expect about 20 billion one of dividend gains from Hana financial group.
She wouldn't boil it down and pay them figuring out what can you tell me if I havent gone when they told me they will create that as a 200 up to critical sort of Assam does that man.
So John I'm glad you got the younger they send them to come down and you have some particular shipyard kickwheel until you got to check what unemployment or keep wondering I'm. Good to go she doesn't sound God turmoil.
Talked a little Caruso.
I don't want you to taking my smoke that he gets to me to.
Yes.
Of course with the increase in dividend income coming from Hana financial group, it's going to be helpful for our cash flow generation and this means that we will be capable of increasing shareholder return, but as for a direct impact on our shareholder dividend payout I cannot give you any detail at this point in time, but I hope that you will consider that.
This is a very important means to enhance and maximize shareholder value and going forward, we're going to consider the market situations and our financial structure before we finally decided on the annual dividend size.
Oh Q1.
They didn't want to get Woogie Shimbun, Haynesville punto, Okay Chicago.
So familiar with.
Hum.
There is a person who asked a question there is one person with a question.
Colombia and go charger with a humble instrument cause your opinion was wrong as to me that.
Yeah.
Well now go to two minutes, what you're doing in EBIT stood two dozen going there each of them. Neither the last question will be follow are asked by suddenly from E. Best investment in Securities. Please go ahead with your question.
Oh no no.
Uh huh.
I was wondering what is your inventory.
How long you can picture on a personal level.
The leases signed.
How long do you do.
I wanted to touch it.
Ooh towards sugar in play what's it called.
So Jim do you touched on how long your question of yours, and builder, which they don't do.
So you don't get ticket suitable to tender.
Yeah.
What do we say you move along quite charged from Golar or chicken.
So not animals or we Wouldnt do Tony I, particularly like charter is critical Hudson good Bollywood with Bob.
You don't walk by touching two critical you have to teach them.
And just you know come about or not.
I'm <unk> from <unk> Securities I would like to ask two questions. The first question is about your cake pecs trend in the first half of this year. Your Capex size was 850 billion one I wonder if it's going to be similar in the second half of the year on year over ear base.
<unk> and you're engaged in building joined five gene networks together with the other telecom companies to increase the five coverage and I understand that this will continue until the end of the first half of 'twenty 'twenty four so up to that point, what is going to be your capex trend for next year and the year after and as for the <unk>.
Question is about your T T V.
And as I can see that there has been a slowdown in the net adds of pay TV subscribers and your P. I P. T V subscriber growth rate has been on high single digit on a year over year basis. So I'd like to know if this trend can be sustained.
Hum.
So I'll call in and talk to many of US are known to escape the vendor ship because someone just have gone onto a shingle you also take a K picks it until the money they want to penetrate the market for me though.
Regarding your question about pay TV business I'd like to hand over to Mr. Pat Joe himself CFO of SK broadband and then ill cover your question regarding Capex.
Yeah.
Yeah, no it's been quite stable again this year for a bathroom so give me that.
Hello, I am talking to himself CFO of SK broadband.
Understood.
We wish them at all.
Okay.
She was little tissue.
You don't want us to do.
You've been one bogey because neither.
The pay TV market in Korea has been enjoying a rapid subscriber growth driven by the ice P. T V market growth and in 'twenty 'twenty. One alone 700000 subscribers were added to the subscriber base and in total we have 36 million customers in the pay TV market.
You don't want it to be something chuckled, when young until Monday anytime soon.
And gentlemen, I'm sure you do a lot of interesting you should put sensors.
It was all coming down.
In particular, the I P. T V market has seen subscriber growth of more than 1 million each year for the past five years and the I P. T V market accounts for more than 60% of the total pay TV market.
On the I P T B S someone's on Keystone and eating Gogo second television shows to mention with symbolism. So I'm, telling you want that's what Tonight is that at all.
I Trust you can go to the tenants.
Okay.
She knows unbundle syndrome should come on line.
And so some of them are can show you didn't just don't always meet up.
D E. P. T V growth rate may slow down, but there is a continued demand coming from single person households, and demand for a second T V. As a result, we expect that the I P. T V subscriber growth trend will continue and as for SK telecom in the first half of this year, we have added more than 100.
90000 people to our IP TV subscriber base and we have maintained number one in terms of net add market share.
You don't have.
So club theater keep under the umbrella of contention.
I mean, your Oklahoma Duluth put me on hold or sell you took on someone's help 20 odd percent.
So could you say like always cause I'm done.
Based on the continued growth of the subscriber base of the pay TV business. We continued to strengthen our platform competitiveness in terms of advertising and content to pursue ARPA growth of the entire pay television business. Thank you.
They use our capex it until the month have been through the August meter.
I would now like to address your question regarding Capex.
The Capex it is and I'm not sure you got your entire younger topical.
Don't get it all the way down to penetrate it I'm going to kick it in India coming into it until you kept us to keep on doing my opinion is you have to put yourself towards younger your science of genetic Japan out of cable question.
As for our Capex plan as we communicated at the annual earnings conference call as well as for the first quarter Conference call. We are planning to maintain a capex level to be similar to that of last year through efficient management.
When did you find with your model are you telling them emerging because I, probably wasn't as I'm willing to pay.
Well, just as long as our market leadership.
But again the top 200 people.
Union Eugene Resona, they took kudos because she was looked at in a pure some meat chronologically you can come up with torturing yourself capex at a miracle that you cannot get that cause you to tell you that you can give me there.
Our activities for a nationwide five G rollout to continue and we believe that we continue or we need to continue to invest in network in order to improve net five to network competitiveness and quality. So that we can maintain five to market leadership, but at the same time, we're going to pursue on efficient execution of capex.
Mainly by utilizing the joint network.
So some things have been put up a carrier sorts of it almost.
They talk to Tyler can you own them kudos I took that up I mean, there's a hilton or what are you going to just throw Ferguson with it.
But at the same time, we need to continue to invest in growth businesses. So we're going to make these investments efficiently in connection with and in consideration of five G network investment.
Conjuncture Capex will soon it is no longer in there, which I'm going on particular, liquorice drunkards, who they talk to their health care, sometimes have it done.
So you have taken to depending on how you're thinking about Dunkin' donuts until they can kick us came over in July .
And that's going to sort of take a huge undertaking.
And as far as like apex trend and outlook in the medium term our position is the same until the nationwide fiber network is completed we will have to continue to invest in that network expansion and at the same time, we're going to invest in growth businesses and through efficient execution and management will be able.
To stabilize the capex trend in the medium term.
You're talking about.
Thank you.
That comes out of it on their own crews I'm sorry to jump in if you touch on bone comes out of a synthetic rutile.
He's done with all the changes you've been you won't get still get the unconfirmed school room will do about your total meter sometime ago.
Thank you for joining us for SK Telecom second quarter conference call. Thank you.
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