SK Telecom Co., Ltd.: Company Profile and SWOT Analysis

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SK Telecom Co., Ltd.: Company Profile and SWOT Analysis
SK Telecom Co., Ltd.



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SK Telecom Co., Ltd. Financial Snapshot



Operating Performance

Fast Facts

SK T-Tower, Seoul, 110-110,Republic of The company reported revenue of US$13,307.85

Headquarters Address

Korea (S) million during the fiscal year 2010 (2010). The

company's revenue grew at a CAGR of 3.61% during

Telephone + 82 2 61002114

2006–2010, with an annual growth of 17.29% over

2009. In 2010, the company recorded an operating

Fax + 82 2 61007830 margin of 12.58%, as against 12.96% in 2009.



Website www.sktelecom.com

Revenue and Margins

Ticker Symbol, Stock Exchange 017670, Korea Stock Exchange



Number of Employees 4,441



Fiscal Year End December



Revenue (in US$ million) 13,307.85



Revenue (in KRW million) 15,435,373.07









SWOT Analysis Return on Equity



Strengths Weaknesses The company recorded a return on equity (ROE) of

12.18% for 2010, as compared to its peers, LG

Market Leading Position Substantial debts Telecom Ltd. (Ticker: 032640), KT Corporation

(Ticker: CVG) and KDDI Corporation (Ticker: CVG),

which recorded ROEs of 14.44%, 10.59% and

Network Infrastructure 10.54% respectively. The company reported a net

profit margin of 12.58% in 2010.

Strong Geographic Presence through

Roaming Service

Return on Equity

Strong top-line performance



Opportunities Threats

Increasing demand for 3G/4G

Currency Exchange Risk

technologies



Strategic Alliances Industry Consolidation









Liquidity Position



The company reported a current ratio of 1.18 in 2010,

as compared to its peers, LG Telecom Ltd., KT

Corporation and KDDI Corporation, which recorded

current ratios of 0.83, 1.09 and 1.18 respectively. As

of December 2010, the company recorded cash and

short-term investments of worth US$1,511.38 million,

against US$1,387.03 million current debt. The

company reported a debt to equity ratio of 0.53 in

2010 as compared to its peers, LG Telecom Ltd., KT

Corporation and KDDI Corporation, which recorded

debt to equity ratios of 0.71, 0.92 and 0.54

respectively.









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SK Telecom Co., Ltd. - SWOT Profile Page 1

SK Telecom Co., Ltd.



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview .................................................................................................................................................5

1.2 Business Description ...............................................................................................................................................5

1.3 Major Products and Services ...................................................................................................................................7

2 Analysis of Key Performance Indicators ............................................................................................... 8

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................8

2.2 Key Financial Performance Indicators ...................................................................................................................11

2.2.1 Revenue and Operating Profit .......................................................................................................................11

2.2.2 Asset, Liabilities and Capex ..........................................................................................................................12

2.2.3 Operational Efficiency ....................................................................................................................................13

2.2.4 Solvency ........................................................................................................................................................14

2.2.5 Valuation ........................................................................................................................................................15

2.3 Competitive Benchmarking ....................................................................................................................................16

2.3.1 Market Capitalization .....................................................................................................................................17

2.3.2 Efficiency .......................................................................................................................................................18

2.3.3 Capital Expenditure .......................................................................................................................................19

2.3.4 Valuation ........................................................................................................................................................20

2.3.5 Liquidity ................................................................................................................

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