SK Telecom “We will become a subscription economy platform company beyond telecommunication companies”

Input 2021.02.03 18:25 | Revision 2021.02.03 18:32

SK Telecom to drive in non-communications for old communication
“Launch subscription service in partnership with businesses such as F&B, education, and rental”
Target 20 million subscribers and 600 billion won in sales by 2023
Corporate structure reorganization such as spin-off “Promote in the direction of maximizing shareholder value”

SK Telecom (017670)Announced that it will create a new growth story from its flagship mobile communication (MNO) business this year as an’AI (artificial intelligence)-based subscription product marketing company’. He said that there is no set yet for corporate restructuring, such as the transition to an intermediate holding company that is receiving the most attention from investors.

SK Telecom Chief Financial Officer (CFO) Yoon Pung-young said in a conference call after the performance announcement on the 3rd, “Beyond the frame of communication, we cooperate with various businesses such as food and beverage (F&B), education, rental, and travel to provide impactful subscription products and services that customers want. “We are planning to release it,” he said. “We are building a new infrastructure to promote subscription-type product marketing, and we are preparing for a reorganization to effectively utilize membership, a powerful marketing tool for telecommunications companies.”

SK Telecom also said that it aims to secure 20 million subscribers for subscription-type products by 2023 and raise sales of 600 billion won.

This subscription-type service is a strategy that SK Telecom will actively reflect on the mobility (convenience of mobility) service that SK Telecom is promoting in partnership with Uber in April. “The establishment of a joint venture (JV) for the joint business of taxi calling with Uber and the launch of the service will take place in April,” said Ha Hyung-il, head of SK Telecom’s Corporate 2 Center. We will expand our existing business and launch subscription-type membership, which we did not have before.” He said, “Tmap Mobility will grow into an all-in-one mobility service that encompasses public transportation, rental cars, vehicle sharing, and taxis.”

Recently, the three telecom companies are also open to the possibility of a partnership between the global online video service (OTT) Disney Plus, which is known to be negotiating fiercely under water, and Wave, its own OTT. CFO Yoon said, “Currently, SK Telecom is working with an open attitude of initial cooperation in the media sector including Internet (IP) TV and OTT,” he said. “The possibility of a partnership with a specific company cannot be mentioned in advance.” In addition, it is said that various methods are being reviewed to strengthen the inherent competitiveness of Wave.

Regarding the corporate governance reorganization, he said, “With the ultimate goal of maximizing shareholder value not only in MNO but also in new business (media, security, commerce), we are opening all possibilities and exchanging opinions with various stakeholders related to the restructuring of governance.” . Although the reorganization, including the division, has not been decided yet, he also emphasized that if it does, it will pursue it in the direction of maximizing corporate value.

On this day, SK Telecom announced in its earnings announcement that it recorded 18,624.7 billion won in sales and 1.349.3 billion won in operating profit last year. This is an increase of 5% and 22%, respectively, compared to the previous year. SK Telecom also revealed its ambition to open an era of 20 trillion won in annual sales for the first time in history this year.