New Street Research - SK Telecom Co. Ltd. (017670) New Street: SK Telecom (Buy, TP: KRW400,000, +36%) Q221: Encouraging mobile trends support decent dividend outlook

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New Street Research

Alastair Jones

New Street: SK Telecom (Buy, TP: KRW400,000, +36%) Q221: Encouraging mobile trends support decent dividend outlook

SK Telecom has reported a decent set of results, showing a very strong OpFCF performance which will be key post the spin-off. Management has detailed a new dividend policy for the telco business based off OpFCF of the mobile business which was up 58% y/y in H121. In this note we run through the feedback from the conference call, and discuss the areas investors are most focussed on.

11/08/2021 4 EN

Underlying

SK Telecom Co. Ltd.

SK Telecom is a wireless telecommunications services provider in the Republic of Korea (South Korea). Co. provides the following services: wireless Internet services, which include music portal services, game portal services, multimedia services, and wired and wireless integrated multimedia services; ubiquitous and convergence services, which include telematics, digital home, commerce, mobile radio frequency identification and mobile community; international roaming services, which include global system for mobile communication; video telephony services, which enable subscribers incorporating video conferences, as well as B2B services.

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KR7017670001 Korea Stock Exchange South Korea

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Analysts

Alastair Jones

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New Street: SK Telecom (Buy, TP: KRW400,000, +36%) Q221: Encouraging mobile trends support decent dividend outlook

Takeaways from Meetings with the Korean Telcos in Seoul. KT to KRW 105,000 SKT to Neutral.

SK Telecom (Buy, KRW 86,000, +65%) Q1 25 Quick Take: Good cost cutting progress overshadowed by impact of data breach

SK Telecom (Buy, KRW 86,000, +54%) Q4 24 Quick Take: Softer mobile revenue partially offset by better SKB trends; dividend payout in-line with expectations

VIPS 2Q25 Preview: Lowering 2Q Topline Estimates

Microsoft vs. OpenAI: Implications for investors?

SATS, Carr, and the Art of the No Deal…Yet

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