SK Telecom Co.,Ltd (NYSE:SKM) Q2 2022 Earnings Conference Call August 9, 2022 2:00 AM ET

Company Participants

Jeong Hwan Choi - IRO

Jin-won Kim - Chief Financial Officer and Head of Corporate Planning Team

Young Sang Ryu - Chief Executive Officer

Yang Maeng-seok - Head of Metaverse Company

Conference Call Participants

Sean Lee - Citigroup

Joonsop Kim - KB Securities

Hoi Jae Kim - Daishin Securities

Operator

First of all, thank you all for joining this conference call. And now, we will 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. [Operator Instructions] Now, we shall commence the presentation on the fiscal year 2022 second quarter earnings results by SK Telecom.

Unidentified Company Representative

[Foreign Language] Good afternoon, I'm [Jeong Hwan Choi] [ph], IRO of SK Telecom. Thank you for joining SK Telecom's earnings conference call.

[Foreign Language] We are providing consecutive interpretation for the call, which will consist of a presentation on Q2 earnings highlights, future business plans, and strategic directions, as well as a Q&A session.

[Foreign Language] The call is attended by our executives from relevant business divisions including Jin-won Kim, CFO and Head of Corporate Planning Team, of SK Telecom.

[Foreign Language] Before we begin, I would like to remind you that all forward-looking statements are subject to change depending on market situations.

[Foreign Language] Let me now present our CFO.

Jin-won Kim

[Foreign Language] Good afternoon. This is Jin-won Kim, CFO of SK Telecom.

[Foreign Language] SK Telecom signed a stock swap deal with Hana Financial Group in July to exchange shares worth over KRW 400 billion 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 ICT and finance under the framework of SKT 2.0.

[Foreign Language] 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 among various services.

[Foreign Language] Now, let me report on the consolidated financial results for second quarter of 2022.

[Foreign Language] Consolidated revenue reported KRW 4,289.9 billion, up 4.0% year-over-year and 0.3% Q-on-Q.

[Foreign Language] Operating income posted KRW 459.6 billion, up 16.1% year-over-year, primarily driven by the end of the accounting recognition of marketing expenses incurred at the beginning of 5G roll-out. It grew by 6.3% Q-on-Q mainly because of eliminating one-off labor costs related to stock bonuses.