Sk Telecom Net Income dropped on 71.5%
07 Feb 2020 • About Sk Telecom (
$SKMD) • By InTwits
Sk Telecom reported FY2019 financial results today. Here are the key drivers of the company's long term financial model: It operates with medium-size leverage: Net Debt/EBITDA is 3.8x while industry average is -2.5x.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 5.2%.
Net Income margin dropped on 13.5 pp from 18.5% to 5.0% in FY2019. During the last 5 years Net Income margin topped in FY2018 at 18.5%.
Management team
The company's CEO is Park Jung-Ho. Park Jung-Ho is a founder and has 2 years tenure with the company.
Financial and operational results
FY ended 30 Nov -0001
Sk Telecom ($SKMD) key annual financial indicators| mln. KRW | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 17,136,734 | 17,091,816 | 17,520,013 | 16,873,960 | 17,743,700 | 5.2% |
| Gross Profit | 15,180,873 | 15,253,448 | 15,633,489 | 15,077,814 | | |
| SG&A | 10,251,332 | 10,393,211 | 10,569,537 | 10,324,050 | | |
| EBITDA | 4,701,492 | 4,604,302 | 4,784,145 | 4,486,099 | | |
| Net Income | 1,518,600 | 1,675,970 | 2,599,830 | 3,127,890 | 889,900 | -71.5% |
Balance Sheet
|
|---|
| Cash | 768,922 | 1,505,242 | 1,457,735 | 1,506,699 | | |
| Short Term Debt | 1,083,298 | 1,192,854 | 1,963,651 | 1,488,515 | | |
| Long Term Debt | 6,560,700 | 6,478,646 | 5,808,056 | 8,587,576 | | |
Cash flow
|
|---|
| Capex | 2,478,778 | 2,490,455 | 2,715,859 | 2,792,390 | | |
Ratios
|
|---|
| Revenue growth | -0.2% | -0.3% | 2.5% | -3.7% | 5.2% | |
| EBITDA growth | -0.3% | -2.1% | 3.9% | -6.2% | | |
|
|---|
| Gross Margin | 88.6% | 89.2% | 89.2% | 89.4% | | |
| EBITDA Margin | 27.4% | 26.9% | 27.3% | 26.6% | |
| SG&A, % of revenue | 59.8% | 60.8% | 60.3% | 61.2% | | |
| Net Income Margin | 8.9% | 9.8% | 14.8% | 18.5% | 5.0% | -13.5% |
| CAPEX, % of revenue | 14.5% | 14.6% | 15.5% | 16.5% | | |
|
|---|
| ROIC | 7.3% | 6.3% | 5.9% | 3.9% | | |
| ROE | 10.1% | 10.6% | 15.3% | 15.4% | | |
| Net Debt/EBITDA | 1.5x | 1.3x | 1.3x | 1.9x | |
Peers in Mobile Telecommunications
Below we provide Sk Telecom benchmarking against other companies in Mobile Telecommunications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Mobile Streams ($MOS) | -40.2% | -56.0% | -55.5% | -46.5% | |
| |
|---|
| Median (1 company) | -3.1% | -0.3% | 1.5% | -46.5% | |
|---|
| Sk Telecom ($SKMD) | | -0.3% | 2.5% | -3.7% | 5.2% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Mobile Streams ($MOS) | 26.4% | 27.6% | 30.8% | 38.7% | |
| |
|---|
| Median (1 company) | 46.7% | 46.2% | 43.9% | 38.7% | |
|---|
| Sk Telecom ($SKMD) | 88.6% | 89.2% | 89.2% | 89.4% | |
Top companies by EBITDA margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Mobile Streams ($MOS) | 2.9% | -6.2% | -28.0% | -38.7% | |
| |
|---|
| Median (1 company) | 31.3% | 9.6% | 26.2% | -38.7% | |
|---|
| Sk Telecom ($SKMD) | 27.4% | 26.9% | 27.3% | 26.6% | |
Top companies by CAPEX/Revenue, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Mobile Streams ($MOS) | 0.2% | 0.1% | 0.3% | 0.6% | |
| |
|---|
| Median (1 company) | 12.3% | 11.6% | 15.9% | 0.6% | |
|---|
| Sk Telecom ($SKMD) | 14.5% | 14.6% | 15.5% | 16.5% | |
Top companies by ROIC, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Mobile Streams ($MOS) | 24.0% | -35.3% | -105.7% | -117.8% | |
| Global Telecom Hldg Sae ($GLTD) | 14.7% | 17.9% | 20.7% | | |
| Megafon OJSC ($MFON) | 19.6% | 14.8% | 14.2% | | |
| Sistema Jsfc ($SSAA) | 7.4% | 8.6% | 11.0% | | |
| |
|---|
| Median (4 companies) | 17.2% | 2.6% | 11.0% | -117.8% | |
|---|
| Sk Telecom ($SKMD) | 7.3% | 6.3% | 5.9% | 3.9% | |
