SK Telecom Co Ltd (SKM) 2022 Q1 法說會逐字稿

[Interpreted] Good morning, and good evening. First of all, thank you all for joining this conference call. And now we will begin the conference for the fiscal year 2022 first quarter earnings results by SK Telecom. (Operator Instructions)

【翻譯】早上好，晚上好。首先，感謝大家參加本次電話會議。現在我們將開始 SK 電訊 2022 財年第一季度收益發布會。 （操作員說明）

Now we shall commence the presentation on the fiscal year 2022 first quarter earnings results by SK Telecom.

現在我們將開始介紹 SK Telecom 2022 財年第一季度的盈利結果。

[Interpreted]

[解讀]

This is Jeong Choi, IRO of SK Telecom. Today's conference call will consist of the presentation on the earnings results for Q1 of 2022 and the future management plans and strategic direction by Jinwon Kim, CFO and Head of Corporate Planning, followed by a Q&A session.

我是 Jeong Choi，SK Telecom 的 IRO。今天的電話會議將由首席財務官兼企業規劃主管 Jinwon Kim 介紹 2022 年第一季度的盈利結果以及未來的管理計劃和戰略方向，隨後進行問答環節。

Today's conference call will provide consecutive interpretation, and we have with us executives from relevant business divisions to help deepen your understanding. Before we begin, we want to remind you that all forward-looking statements are subject to change, depending on the macroeconomic and market situations. Let me now present our CFO.

今天的電話會議將提供交替傳譯，我們有相關業務部門的高管與我們一起幫助加深您的理解。在開始之前，我們想提醒您，所有前瞻性陳述都可能發生變化，具體取決於宏觀經濟和市場情況。現在讓我介紹一下我們的首席財務官。

[Interpreted]

[解讀]

Good afternoon. This is Jinwon Kim, CFO of SK Telecom. Last year, SK Telecom successfully completed a spin-off to maximize shareholder value, and announced the launch of SKT 2.0, where we redefined our business centered on 5 business groups. SK Telecom works to maximize total corporate value by developing and implementing strategies optimized for each business group to achieve growth of their respective businesses.

下午好。我是 Jinwon Kim，SK 電訊首席財務官。去年，SK電訊成功完成分拆，以實現股東價值最大化，並宣布推出SKT 2.0，以5個業務集團為中心重新定義了我們的業務。 SK Telecom 致力於通過制定和實施針對每個業務部門優化的戰略來實現企業總價值最大化，以實現各自業務的增長。

We ask investors and analysts for your continued support and interest for our efforts.

我們請求投資者和分析師繼續支持和關注我們的努力。

Now let me report on the consolidated financial results of Q1 of 2022. Consolidated revenue reported KRW 4.2772 trillion. It decreased by 0.5% Q-on-Q due to the base effect from seasonal sales in Q4. On a Y-o-Y basis, it increased by 4%. Operating income posted KRW 432.4 billion, up 15.5% year-on-year and 90.7% Q-on-Q. Solid earnings growth was driven by multiple factors, including the expanded share of 5G, revenue growth supported by growing IPTV and broadband subscribers, impact of stable market competition and base effect from seasonal costs recognized in Q4.

現在讓我報告一下2022年第一季度的合併財務業績。合併收入為4.2772萬億韓元。由於第四季度季節性銷售的基數效應，環比下降 0.5%。同比增長 4%。營業收入達 4,324 億韓元，同比增長 15.5%，環比增長 90.7%。盈利的穩健增長受到多種因素的推動，包括5G份額的擴大、IPTV和寬帶用戶增長支持的收入增長、穩定的市場競爭的影響以及第四季度確認的季節性成本的基數效應。

Net income recorded KRW 220.3 billion, posting a 61.5% decline year-on-year and a 30% decline Q-on-Q, mainly due to the exclusion of equity message gains from SK Hynix, and base effect where gains of the sale of SK Wyverns were recognized in Q1 of 2021.

淨利潤為 2,203 億韓元，同比下降 61.5%，環比下降 30%，主要是由於剔除 SK 海力士的股權信息收益以及出售 SK 海力士的收益的基數效應所致。 SK Wyverns 於2021 年第一季度獲得認可。

On a nonconsolidated basis, revenue grew 3.2% year-on-year and 0.1% Q-on-Q to post KRW 3.0774 trillion. Operating income and net income reported KRW 356.9 billion and KRW 252 billion, respectively.

在非合併基礎上，收入同比增長 3.2%，環比增長 0.1%，達到 3.0774 萬億韓元。營業收入和淨利潤分別為 3,569 億韓元和 2,520 億韓元。

Having reported the financial highlights of Q1 of 2022, let me now move on to major achievements and strategic directions for each business group. First, both revenue and profitability of fixed and mobile business group continued to improve on the back of 5G and IPTV competitiveness. As of the end of Q1 2022, we have 10.88 million 5G subscribers, which represents an increase of 1 million from the previous quarter.

報告了 2022 年第一季度的財務亮點後，現在讓我談談每個業務部門的主要成就和戰略方向。首先，在5G和IPTV競爭力的推動下，固定和移動業務收入和盈利能力持續改善。截至2022年第一季度末，我們擁有1088萬5G用戶，較上季度增加100萬。

Given the current trend, we expect the 5G subscriber base to exceed our target of $13 million by the end of the year. The 5G penetration rate is likely to surpass 50% of the total handset subscribers during this year. Against this backdrop, we will launch various price plans and services to meet the circumstance of 5G becoming mainstream and customer needs becoming more diversified.

鑑於目前的趨勢，我們預計 5G 用戶基數到年底將超過 1300 萬美元的目標。今年5G滲透率可能會超過手機用戶總數的50%。在此背景下，我們將推出豐富的資費方案和服務，以適應5G成為主流、客戶需求更加多元化的情況。

As this year marks the fourth year of 5G launch, market stability trend is expected to continue. SK Telecom aims to maintain efficient market operation while refraining from unhealthy marketing competition. The number of pay TV subscribers of SK Broadband stands at 9.1 billion as of the end of Q1. The pay TV subscriber base growth has been driven by sustained increase in IPTV subscriber net adds, the large pay TV subscriber base leads to better bargaining power with business partners and improved profitability because of economies of scale.

今年是5G推出的第四個年頭，市場穩定趨勢有望延續。 SK Telecom 的目標是保持高效的市場運營，同時避免不良的營銷競爭。截至第一季度末，SK Broadband 的付費電視用戶數量為 91 億。付費電視用戶基數的增長是由IPTV用戶淨增量的持續增長所推動的，龐大的付費電視用戶基數帶來了與業務合作夥伴更好的議價能力，並因規模經濟而提高了盈利能力。

Media and Enterprise businesses continue to enjoy top line growth. Established by SK Broadband is a multiple program provider in January last year, Media has celebrated the first anniversary of regular broadcasting in April. On Channel S, 70% of the total programs are exclusive content through partnerships with Kakao Entertainment and S.M.C&C. Channel S is strengthening the value chain of media business that includes content, channel and platform.

媒體和企業業務繼續實現營收增長。 SK Broadband於去年1月成立了一家多節目提供商，Media於4月慶祝了定期廣播一周年。在 Channel S 上，70% 的節目都是與 Kakao Entertainment 和 S.M.C&C 合作的獨家內容。 Channel S正在加強包括內容、渠道和平台在內的媒體業務價值鏈。

As Korea's #1 e-commerce company in terms of revenue, SK Stoa reported sustained growth with Q1 revenue of KRW 89.5 billion. It will develop growth strategies in cooperation with SK ICT family companies to reinforce its market leadership.

作為韓國收入第一的電子商務公司，SK Stoa 報告持續增長，第一季度收入達 895 億韓元。它將與 SK ICT 家族企業合作制定增長戰略，以鞏固其市場領導地位。

Advertising business is centered on diverse and fixed line and wireless media with a combined pass rate of 160 million daily views. We plan to apply our sophisticated AI-based targeting capability to the advertising business and diversify types of media, including tPhone app, MPP platform and addressable TV to pursue an annual growth rate of 40% for the next 4 years.

廣告業務以多元化、固網、無線媒體為主，日均瀏覽量合計達1.6億次。我們計劃將我們先進的基於人工智能的定位能力應用於廣告業務，並使媒體類型多樣化，包括tPhone應用程序、MPP平台和可尋址電視，以追求未來4年40%的年增長率。

Moving on to Enterprise business. New data centers in Kosan and [Shiksha] were opened in July last year, and they have already secured customer contracts, thereby expecting sustained revenue growth. We're also preparing to open other data centers in areas such as the solar metropolitan area to meet the exclusive growth in demand for data centers. Cloud business has also been growing, thanks to traffic-linked revenue growth and increasing customer orders as the scope of cloud business continues to expand.

轉向企業業務。 Kosan 和 [Shiksha] 的新數據中心於去年 7 月啟用，並且已經獲得了客戶合同，因此預計收入將持續增長。我們還準備在太陽能都市區等地區開設其他數據中心，以滿足數據中心需求的獨家增長。雲業務也一直在增長，這得益於與流量掛鉤的收入增長以及隨著雲業務範圍不斷擴大而增加的客戶訂單。

In addition, to promote AI robot-based logistics business in March, SK Telecom signed a business cooperation agreement with CMES, an AI robot software company, which includes an equity investment in CMES. We will work with CMES to develop logistics AI robot business.

此外，為推動基於AI機器人的物流業務，SK電訊於3月份與AI機器人軟件公司CMES簽署了業務合作協議，其中包括對CMES的股權投資。我們將與招商輪船合作發展物流人工智能機器人業務。

For AIVERSE business, we continue to make efforts to strengthen core capabilities necessary to produce tangible results. Our subscription service, T Universe, has recently produced meaningful results with a number of users reaching 1 million, and GMV exceeding KRW 130 billion in Q1. We will keep strengthening key benefits through expanding the number of items for overseas that are purchased on the 11th Street, launch breakthrough subscription products through collaboration with popular brands, and offer personalized subscription products by utilizing AI-targeting capability. These are part of our efforts to ensure that subscription services become a major source of income for SK Telecom.

對於AIVERSE業務，我們不斷努力強化核心能力，以取得實實在在的成果。我們的訂閱服務T Universe最近取得了有意義的成果，用戶數量達到100萬，第一季度GMV超過1300億韓元。我們將不斷強化核心優勢，擴大11街海外購買的商品數量，通過與熱門品牌合作推出突破性的訂閱產品，並利用人工智能定位能力提供個性化的訂閱產品。這些都是我們努力確保訂閱服務成為 SK Telecom 的主要收入來源的一部分。

Ifland, our Metaverse platform achieved a fivefold growth from July last year, the month of launch, with MAU reaching 1.35 million in March. At MWC in February, Ifland was recognized as a successful 5G use-case for a telecom company. Since then, we have been receiving inquiries from various global companies for partnership, and we plan to expand globally this year by offering our service in nearly 80 countries. In April, we made an equity investment in Morph Interactive, a Metaverse platform developer in Korea, to secure core technologies and development capability for Metaverse and beef up our service competitiveness.

我們的元界平台Ifland比去年7月推出時增長了五倍，3月份月活躍用戶達到135萬。在 2 月份的 MWC 上，Ifland 被認為是電信公司成功的 5G 用例。從那時起，我們不斷收到來自多家全球公司的合作詢問，我們計劃今年在全球範圍內擴張，在近 80 個國家提供服務。 4月，我們對韓國Metaverse平台開發商Morph Interactive進行股權投資，以確保Metaverse的核心技術和開發能力，增強我們的服務競爭力。

We also plan to launch an open-data service for AI agent, which is a character-based agent that shares daily life with customers. It is going to be a B2C AI service that uses deep learning technology to continue to become personalized based on customer usage. We will share more details with the market when the service is launched.

我們還計劃推出人工智能代理的開放數據服務，這是一個基於角色的代理，與客戶分享日常生活。這將是一項 B2C 人工智能服務，利用深度學習技術，根據客戶的使用情況繼續變得個性化。當服務推出時，我們將與市場分享更多細節。

Finally, let me discuss our shareholder return policy. SK Telecom currently pays dividend quarterly, and the total dividend size will be determined within 30% to 40% of EBITDA minus CapEx, as was announced before. The Board determined the first quarter DPS to be KRW 830.

最後，讓我討論一下我們的股東回報政策。 SK Telecom 目前每季度支付股息，總股息規模將在 EBITDA 減去資本支出的 30% 至 40% 範圍內確定，正如之前宣布的那樣。董事會確定第一季度股息為 830 韓元。

According to the National Customer Satisfaction Index released in April 2022, SK Telecom was ranked first for mobile phone service for 25 consecutive years. Since the launch of NCSI in 1998 across all business categories, SK Telecom is the first -- the only company that has been ranked first for 25 consecutive years.

根據2022年4月發布的全國客戶滿意度指數，SK電訊連續25年在移動電話服務方面排名第一。自 1998 年在所有業務類別中推出 NCSI 以來，SK Telecom 是第一家——也是唯一一家連續 25 年排名第一的公司。

SK Broadband has been ranked first for broadband Internet and IPTV service for 12 consecutive years. SK Telecom is making tireless efforts to create meaningful growth in new businesses based on unrivaled competitiveness of the fixed and mobile business.

SK Broadband連續12年在寬帶互聯網和IPTV服務方面排名第一。 SK Telecom 正在不懈努力，以固定和移動業務無與倫比的競爭力為基礎，在新業務中創造有意義的增長。

Within the framework of SKT 2.0, we will improve financial performance and create meaningful results for new businesses to enhance corporate value with the goal of maximizing shareholder value. Once again, we ask for your continued support and interest. Thank you.

在SKT 2.0的框架內，我們將改善財務績效，為新業務創造有意義的成果，以提升企業價值，實現股東價值最大化。我們再次請求您繼續支持和關注。謝謝。

[Interpreted] We will now begin the Q&A session.

[解讀]我們現在開始問答環節。

[Interpreted] (Operator Instructions)

[解釋]（操作說明）

The first question will be presented by Soyun Shin from Credit Suisse.

第一個問題將由瑞士信貸銀行的 Soyun Shin 提出。

[Interpreted] This is Shin Soyun from Credit Suisse. I would like to ask 2 questions. The first question is that given your good performance in the first quarter and the competitive landscape in the industry, we expect that there will be better business performance improvement on a nonconsolidated basis. So I was wondering if there will be any possibility of increasing dividend for 2022?

[解讀] 我是瑞士信貸銀行的 Shin Soyun。我想問2個問題。第一個問題，鑑於你們一季度良好的業績表現以及行業競爭格局，我們預計非並表業務業績會有更好的提升。所以我想知道2022年是否有可能增加股息？

The second question is that now your 5G subscriber base is expanding, and you're doing well in your industry. So when do you think -- by when do you think this medium- and long-term ARPU growth trend will sustain? Any guidance on this topic will be very helpful.

第二個問題是，現在你們的5G用戶群正在擴大，你們的行業做得很好。那麼您認為這種中長期 ARPU 增長趨勢會持續到什麼時候？關於這個主題的任何指導都會非常有幫助。

[Interpreted] Thank you very much for the questions.

[解釋]非常感謝您的提問。

As I mentioned in my presentation, our dividend size is determined within 30% to 40% of EBITDA minus CapEx. When we look at the growth trend of EBITDA, which is a source for dividend payout, we will continue to increase our 5G competitiveness in the MNO business, and we will add more value coming from new businesses. We will also continue to make efforts for cost efficiency, including distribution innovation centered on AI and digital. Therefore, we believe that our EBITDA size will continue to grow.

正如我在演講中提到的，我們的股息規模由 EBITDA 減去資本支出的 30% 至 40% 決定。當我們觀察作為股息支付來源的EBITDA的增長趨勢時，我們將繼續增強我們在MNO業務中的5G競爭力，並且我們將通過新業務增加更多價值。我們還將繼續在成本效率方面做出努力，包括以人工智能和數字化為中心的分銷創新。因此，我們相信我們的 EBITDA 規模將繼續增長。

We still need to make essential investments to expand 5G coverage and maintain 5G network quality, but we will execute CapEx efficiently through efforts such as joint rollout of 5G networks. Therefore, we expect to maintain the growth trend of EBITDA minus CapEx, which is the reference point for this year's dividend. The annual dividend size will be determined in consideration of various factors, including business performance and cash flow, but we will do our best to make sure that this year's dividend payout will be at least similar to the level of last year.

我們仍然需要進行必要的投資來擴大5G覆蓋範圍並維持5G網絡質量，但我們將通過聯合推出5G網絡等努力來有效執行資本支出。因此，我們預計將維持EBITDA減去CapEx的增長趨勢，這是今年股息的參考點。年度股息規模將根據經營業績和現金流等多種因素確定，但我們將盡力確保今年的股息支付至少與去年的水平相似。

Regarding your question on the ARPU growth trend based on the 5G subscriber growth, Mr. Kim Ji Hong, Head of Integrated Marketing Strategy Office will address this question.

關於您提出的基於5G用戶增長的ARPU增長趨勢的問題，整合營銷策略室主任Kim Ji Hong先生將回答這個問題。

[Interpreted]

[解讀]

I am Kim Ji Hong, Head of Integrated Marketing Strategy Office. Let me answer your question. Currently, it is not easy to make predictions on this trend because of multiple variables such as the pandemic situation and the percentage of IoT accounts. But reflecting on 2011, when LTE was launched, even though we introduced selective discount options in the middle, we were able to enjoy the ARPU growth trend for up to 5 years since the launch. As for 5G, we expect that the 5G usage period is going to be longer than that of LTE, which means that we can expand the ARPU growth trend for longer than 5 years.

我是整合營銷戰略室主任 Kim Ji Hong。讓我回答你的問題。目前，由於疫情、物聯網賬戶佔比等多個變數，很難對這一趨勢做出預測。但回想2011年，當LTE推出時，儘管我們在中間推出了選擇性折扣選項，但自推出以來長達5年的時間裡，我們仍能享受到ARPU的增長趨勢。至於5G，我們預計5G的使用周期將比LTE更長，這意味著我們可以將ARPU增長趨勢擴大到5年以上。

Actually, the handset ARPU has been on the rise since 5G launch. However, the ARPU figures that we share with the market include low ARPU accounts such as IoT lines and second devices. Furthermore, acceleration of digitalization in all areas is leading to increasing IoT lines. So I hope that you will consider this aspect and be mindful of that when you look at our ARPU numbers. Thank you.

事實上，自5G推出以來，手機ARPU一直在上升。然而，我們與市場分享的 ARPU 數據包括低 ARPU 賬戶，例如物聯網線路和第二設備。此外，所有領域數字化的加速導致物聯網線路不斷增加。所以我希望您在查看我們的 ARPU 數字時能夠考慮到這一點並留意這一點。謝謝。

[Interpreted] Next question will be presented by Kim Hoi Jae Daishin Securities.

[解讀]下一個問題將由大信證券金會才提出。

[Interpreted]

[解讀]

I'm Kim Hoi Jae from Daishin Securities. I would like to ask 2 questions. The first question is about your annual outlook or target for your 5G subscriber base. I was wondering if you're going to maintain this annual target of 13 million by the end of the year, as you mentioned in your presentation. But I've been -- we can see that there has been some slowdown in the growth trend of 5G subscribers, and there may be some issues with price plans. So given these circumstances, do you think that you can maintain, or you will maintain this annual target of 13 million? And what is your outlook on MNO revenue?

我是大信證券的 Kim Hoi Jae。我想問2個問題。第一個問題是關於您的 5G 用戶群的年度展望或目標。我想知道您是否會像您在演講中提到的那樣，在年底前保持 1300 萬的年度目標。但我一直——我們可以看到5G用戶的增長趨勢有所放緩，並且價格計劃可能存在一些問題。那麼在這樣的情況下，您認為能夠維持或者維持這個1300萬的年度目標嗎？您對移動網絡運營商的收入有何展望？

The second question is about the MNO business growth strategies, and also your strategies in responding to the recent decline in the MNO handset volume?

第二個問題是關於MNO業務的增長策略，以及你們針對最近MNO手機銷量下降的策略？

[Interpreted] Thank you for your questions. As of the end of Q1, 5G subscribers grew by more than 1 million from the previous quarter to reach 10.88 million. We communicated that our annual 5G subscriber target is 13 million, given the current trend, even though there are some macroeconomic uncertainties, we believe that we can achieve this target.

[解釋]謝謝您的提問。截至一季度末，5G用戶數環比增長超100萬戶，達到1088萬戶。我們傳達的信息是，我們每年的5G用戶目標是1300萬戶，從目前的趨勢來看，儘管宏觀經濟存在一些不確定性，但我們相信我們能夠實現這個目標。

The Q1 MNO revenue did not grow as much as last quarter due to market operation focused on selective discount options with the launch of flagship devices, high demand with the beginning of the school year and then seasonal base effects, but you can see that the Q1 MNO revenue grew on a year-over basis by 2.2%, and we expect that our revenue growth trend will continue.

由於市場運營側重於旗艦設備推出的選擇性折扣選項、學年開始時的高需求以及季節性基數效應，第一季度 MNO 收入的增長不如上季度，但您可以看到，第一季度MNO 收入同比增長2.2%，我們預計我們的收入增長趨勢將持續下去。

Concerning your question on our subscriber growth trend outlook and the situation with respect to MVNO, Mr. Kim Ji Hong, Head of Integrated Marketing Strategy Office, will address the question.

關於您對我們的用戶增長趨勢展望和MVNO狀況的疑問，整合營銷策略辦公室主任Kim Ji Hong先生將對此進行解答。

[Interpreted] Let me address this question. Out of the total handset subscribers, the share of 5G subscribers was 41.6% at the end of last year, but the figure increased to 45.9% at the end of first quarter. Given this current trend, we expect that the share of 5G subscribers of the total handset subscribers is going to reach about 58% by the end of the year.

[解讀]這個問題我來解答一下。在手機用戶總數中，去年底5G用戶佔比為41.6%，一季度末這一數字增至45.9%。鑑於目前的趨勢，我們預計到年底5G用戶佔手機用戶總數的比例將達到58%左右。

Our 5G net adds market share exceeded 50%, thanks to effective market responses, and we were able to further solidify our 5G market leadership. Currently, we're expanding our 5G subscriber base and market share effectively, and strengthening the subscriber retention efforts. And there's also expectation for roaming revenue grounded that there will be easing of quarantine guidelines. So we expect a stable growth trend of our MNO business.

通過有效的市場反應，5G淨增市場份額超過50%，進一步鞏固了5G市場領先地位。目前，我們正在有效擴大5G用戶規模和市場份額，加強用戶保留工作。由於檢疫指南的放鬆，漫遊收入也有望增加。因此，我們預計 MNO 業務將呈現穩定增長趨勢。

Let me now move on to answer your question regarding our position with respect to MVNO. We have been working hard and considering various strategies and measures to find the right balance between cost prosperity with small MVNOs and our MNO business growth.

現在讓我繼續回答您關於我們對 MVNO 立場的問題。我們一直在努力工作並考慮各種策略和措施，以在小型 MVNO 的成本繁榮和我們的 MNO 業務增長之間找到適當的平衡。

As a mandatory wholesale network provider, SK Telecom will continue to follow government policies and help develop the MVNO market.

作為強制性批發網絡提供商，SK Telecom 將繼續遵循政府政策並幫助開發 MVNO 市場。

But at the same time, SK Telecom will focus on MNO subscriber retention by offering differentiated customer experiences, including additional benefits on SK Telecom's subscription services as well as trendy membership partnerships and customer centers that provide tailored and professional consulting. These are not available from MVNO players. And by making these efforts, we will continue to retain our MNO subscribers.

但與此同時，SK Telecom 將通過提供差異化​​的客戶體驗來專注於 MNO 用戶保留，包括 SK Telecom 訂閱服務的額外優惠以及時尚的會員合作夥伴關係和提供定制專業諮詢的客戶中心。這些是 MVNO 玩家無法獲得的。通過這些努力，我們將繼續留住我們的移動網絡運營商用戶。

[Interpreted] The next question will be presented by Etong Min from ETREND.

[解讀]下一個問題將由ETREND的Etong Min提出。

[Interpreted] I am Etong Min from a YouTube channel called ETREND. I would like to ask you a couple of more practical questions that have been raised by individual investors in the market. The first is about the possibility of SK Telecom being removed from MSCI. And I was wondering if the company could provide some more color on the current situation if this is going to happen? And if that is going to be the case, what will be the impact on your business?

[解讀] 我是 YouTube 頻道 ETREND 的 Etong Min。我想問大家幾個市場上個人投資者提出的比較實際的問題。第一個是關於 SK Telecom 被從 MSCI 剔除的可能性。我想知道如果這種情況真的發生的話，公司是否可以就目前的情況提供更多信息？如果是這種情況，會對您的業務產生什麼影響？

The second question is related to price plans. Recently, the presidential transition committee made proposals regarding telecom business, which one of them was an introduction of middle-end price plans. And there are some concerns in the market that this would signal a strengthening of regulations for telecom businesses. So what is your position on this? And what do you think will be the potential impact of this on your business?

第二個問題與價格計劃有關。最近，總統過渡委員會提出了有關電信業務的提案，其中之一就是引入中端價格計劃。市場擔心這將標誌著對電信業務監管的加強。那麼你對此持什麼立場？您認為這會對您的業務產生什麼潛在影響？

[Interpreted] Etong Min from ETREND, thank you for your questions. As of the end of April, foreign ownership of SK Telecom exceeded the threshold of 47.16% of MSCI removal criteria. So SK Telecom may be removed from the index at the end of May when rebalancing happens. But such decision is not -- is based on multiple factors, including qualitative elements. So we will need to wait for the MSCI report to be released on May 13.

【解讀】ETREND的Etong Min，謝謝您的提問。截至4月底，SK電訊的外資持股比例超過了MSCI剔除標準47.16%的門檻。因此，當重新平衡發生時，SK Telecom 可能會在 5 月底從指數中剔除。但這樣的決定並非基於多種因素，包括定性因素。所以我們需要等待5月13日MSCI報告的發布。

If SK Telecom is removed from MSCI in May during rebalancing, some passive funds that follow -- that are linked to MSCI will be outflowed. But at the end of August last year, our weight was already adjusted. So SK Telecom's weight is currently only 25%. And so market experts predict that the signs or the impact of outflow of passive capital would be around KRW 100 billion.

如果 SK Telecom 在 5 月份重新平衡期間被從 MSCI 中剔除，隨後與 MSCI 相關的一些被動基金將流出。但去年8月底，我們的體重就已經調整好了。所以SK電訊的權重目前只有25%。因此，市場專家預測，被動資本流出的跡像或影響將在1000億韓元左右。

And at the end of -- at the time of rebalancing last year, the outflow was estimated to be about KRW 900 billion. So compared to that, the impact for this time around is going to be much smaller. So compared to the MSCI adjustment that we went through last August, we cautiously anticipate that the impact this time around will be much smaller.

去年年底再平衡時，資金外流估計約為 9000 億韓元。所以相比之下，這一次的影響要小得多。因此，與去年8月經歷的MSCI調整相比，我們謹慎預計這次的影響會小得多。

I would like to also add that there are particular methodologies used by MSCI for the index operation, and passive funds that follow MSCI also have their own operational rules. Therefore, what I communicated with you is based on our best estimates, I'd like to remind you of that.

我還想補充一點，MSCI對於指數操作有特定的方法論，遵循MSCI的被動基金也有自己的操作規則。因此，我與您溝通的內容是基於我們的最佳估計，我想提醒您這一點。

Let me now move on to your question regarding medium-end price plans. SK Telecom is considering various price options and plans in consideration of customers' needs, usage patterns and 5G subscriber growth trend. We have entered the fourth year of 5G launch, and the penetration rate of 5G is already more than 40%. It really shows that 5G has become mainstream. Therefore, we believe it is a natural phenomenon for more price plans to come out in the market.

現在讓我繼續回答您有關中端價格計劃的問題。 SK Telecom 正在考慮客戶需求、使用模式和 5G 用戶增長趨勢，考慮各種價格選擇和計劃。我們已經進入5G推出的第四個年頭，5G滲透率已經超過40%。這確實表明5G已經成為主流。因此，我們認為市場上出現更多的價格計劃是一個自然現象。

Because 5G is now dominant in the market, in order to expand our customers' choices for various price plans, SK Telecom will continue to consider various price options for customers. Thank you.

由於5G現在在市場上佔據主導地位，為了擴大客戶對各種價格計劃的選擇，SK Telecom將繼續為客戶考慮各種價格選擇。謝謝。

[Interpreted] The next question will be presented by Kim Joonsop from KB Securities.

[解讀]下一個問題將由KB證券的Kim Joonsop提出。

[Interpreted] I am Kim Joonsop from KB Securities. I will like to ask 2 questions. One, regarding your IDC business and the other about your AI business.

[解讀]我是KB證券的金俊燮。我想問2個問題。一是關於你的IDC業務，二是關於你的AI業務。

First of all, about your data center business. I understand that there is a shortage of supply for data center capacity, so I was wondering what kind of strategies you have at SK Telecom to secure additional data center capacity?

首先，關於您的數據中心業務。據我了解，數據中心容量供應短缺，所以我想知道 SK Telecom 有哪些策略來確保額外的數據中心容量？

Secondly, about AI business. I understand you call this AIVERSE. When do you think you will be able to have substantial revenue and operating profit coming out of this AIVERSE business? And how do you think this will contribute to strengthening the competitiveness of your MNO business?

其次，關於AI業務。我知道你稱之為 AIVERSE。您認為您什麼時候能夠從 AIVERSE 業務中獲得可觀的收入和營業利潤？您認為這將如何有助於增強您的移動網絡運營商業務的競爭力？

[Interpreted] Thank you for your questions. I'm going to cover your question regarding AIVERSE. And Mr. [Park Jong Salk], CFO and Head of Corporate Planning of SK Broadband, is going to discuss strategies regarding data center.

[解釋]謝謝您的提問。我將回答您關於 AIVERSE 的問題。 SK Broadband 首席財務官兼企業規劃主管 [Park Jong Salk] 先生將討論有關數據中心的戰略。

Since launched last year, our subscription service, T Universe, and our Metaverse platform, Ifland, has been increasing their users. And recently, the number of T Universe users has succeeded 1 million, and Metaverse has more than 1.35 million MAUs.

自去年推出以來，我們的訂閱服務 T Universe 和 Metaverse 平台 Ifland 的用戶數量一直在增加。而近期，T Universe用戶數已成功突破100萬，Metaverse MAU超過135萬。

T universe has been improving user convenience rapidly, and has been preparing for product lineups to offer more -- or more competitive product lineups. And for Ifland, we're preparing to introduce open content platform and NFT and blockchain technology based economic system. So by making these efforts, we will go beyond the market entry phase to expand these businesses in full swing.

T Universe一直在快速提高用戶便利性，並一直在產品陣容上做準備，以提供更多或更具有競爭力的產品陣容。對於Ifland，我們準備引入開放內容平台以及基於NFT和區塊鏈技術的經濟系統。因此，通過這些努力，我們將超越市場進入階段，全面拓展這些業務。

AIVERSE business group, that includes subscription and Metaverse, revenue in 2021 was about KRW 200 billion, and our goal and vision is to increase this number to KRW 2 trillion by 2025. Both subscription and Metaverse services do not require massive CapEx, but they are growth businesses that are built upon the foundation of our strong 5G infrastructure and marketing assets, including contact centers and building systems. Therefore, we believe that expanded user base will lead to better profitability. And in the long run, we expect that subscription and Metaverse businesses will become key sources of profit for SK Telecom along with fixed and mobile business.

AIVERSE業務集團，包括訂閱和元界，2021年的收入約為2000億韓元，我們的目標和願景是到2025年將這個數字增加到2萬億韓元。訂閱和元界服務都不需要大量的資本支出，但它們增長型業務建立在我們強大的 5G 基礎設施和營銷資產（包括聯絡中心和樓宇系統）的基礎上。因此，我們相信擴大的用戶基礎將帶來更好的盈利能力。從長遠來看，我們預計訂閱和Metaverse業務將與固定和移動業務一起成為SK Telecom的主要利潤來源。

Moving on to the contribution of AIVERSE businesses to our MNO business. We are confident that utilization and growth of Ifland and T Universe are going to contribute, and strengthen our MNO business. More usage of Metaverse features and functions will increase demand for more stable and faster networks and demand for data. And so these will facilitate the expansion of 5G services, and this will also provide an opportunity for more attention to be given to our excellent quality 5G services. Furthermore, subscription services will offer differentiated experiences for our MNO customers through synergies with team membership. By having these representative services, we believe that our MNO service will become even more competitive.

接下來討論 AIVERSE 業務對我們 MNO 業務的貢獻。我們相信 Ifland 和 T Universe 的利用和增長將為我們的 MNO 業務做出貢獻並加強。更多地使用Metaverse特性和功能將增加對更穩定、更快速的網絡的需求以及對數據的需求。這些都將有利於5G業務的拓展，也將為我們優質的5G業務得到更多關注提供機會。此外，訂閱服務將通過與團隊成員的協同作用，為我們的移動網絡運營商客戶提供差異化​​的體驗。通過擁有這些代表性服務，我們相信我們的MNO服務將變得更具競爭力。

And concerning your question regarding our IDC business, Mr. Park Jong Salk , CFO of SK Broadband will address the question.

關於您關於我們IDC業務的問題，SK Broadband首席財務官Park Jong Salk先生將為您解答。

[Interpreted] I am [Park Jong Salk], CFO of SK Broadband. Let me provide you with some information on our current status and strategy. As there is increasing demand for traffic and also usage of public cloud, we expect that demand for our data center capacity will continue to increase. Therefore, we are planning to increase our size and also competitiveness.

[翻譯]我是[Park Jong Salk]，SK Broadband 的首席財務官。讓我向您提供一些有關我們當前狀況和戰略的信息。隨著對流量的需求以及公共雲的使用不斷增加，我們預計對數據中心容量的需求將繼續增加。因此，我們計劃擴大規模並提高競爭力。

Currently, SK Telecom is operating 5 data centers in the Solan surrounding metropolitan area. And additionally, we are planning to expand the data center capacities in the metropolitan area as well as in the Pusan area, thereby securing more than about 200 megawatts of IT power.

目前，SK Telecom 在 Solan 周邊大都市區運營著 5 個數據中心。此外，我們還計劃擴大首都圈和釜山地區的數據中心容量，從而確保超過約200兆瓦的IT電力。

So in Q1, we are already in the process of developing a data center in the Solan surrounding metropolitan area, which will be the size of 80 megawatts, which are scheduled to be operating in 2026. In addition, we are pursuing data center capacity in the Pusan area by utilizing SK Telecom submarine cable and in connection with Asia hub data center.

所以在第一季度，我們已經在索蘭周邊大都市區開發一個數據中心，規模為80兆瓦，計劃於2026年投入運營。此外，我們正在追求數據中心容量釜山地區利用SK Telecom 海底電纜並與亞洲樞紐數據中心連接。

[Interpreted] The next question will be presented by Neale Anderson from HSBC.

[解讀]下一個問題將由匯豐銀行的 Neale Anderson 提出。

It's a similar question to the previous one on SK Broadband, please. So really, I want to ask about 2 things. The first is cost synergies following the [T Board] integration. Can we expect any more development there? And secondly, it's about the timing of the revenues and the cost. So you mentioned the development of the data center business. Can you talk a little bit more about the cost side of that? And whether you're seeing increasing demand for staff and other factors that might lead to cost inflation?

這是與 SK Broadband 上的上一個問題類似的問題。所以真的，我想問兩件事。首先是[T Board]整合後的成本協同效應。我們可以期待那裡有更多的發展嗎？其次，這與收入和成本的時間安排有關。所以你提到了數據中心業務的發展。您能多談談成本方面嗎？您是否看到對員工的需求不斷增加以及其他可能導致成本上漲的因素？

(foreign language)

（外語）

[Interpreted] Thank you for your questions. For these questions, Mr. [Park Jong Salk], CFO of SK Broadband will address them.

[解釋]謝謝您的提問。對於這些問題，SK Broadband首席財務官[Park Jong Salk]先生將為您解答。

[Interpreted] I am [Park Jong Salk], CFO of SK Broadband. Let me first elaborate more on the revenue and cost drivers for the Q1. First of all, for our business performance in the first quarter, our revenue was -- the total revenue was KRW 1.26 trillion. So it was an increase of 6.2% year-on-year because of IPTV subscriber growth and B2B business growth. However, when it comes to the operating profit, there was a slight slowdown in the growth due to the marketing costs and depreciation effect. So the operating profit was KRW 76.1 billion.

[翻譯]我是[Park Jong Salk]，SK Broadband 的首席財務官。讓我首先詳細說明第一季度的收入和成本驅動因素。首先，就我們第一季度的業績而言，我們的收入是——總收入是1.26萬億韓元。由於IPTV用戶增長和B2B業務增長，同比增長6.2%。然而，營業利潤方面，由於營銷成本和折舊影響，增長略有放緩。因此營業利潤為761億韓元。

When we look at the breakdown of our SK Broadband business, it has 3 components. The first was -- is B2C business, which is IPTV -- which includes IPTV, and the second is our high-speed broadband, and the fact the third is B2B business. As for the first one, B2C business, in the first quarter, the IPTV subscriber growth was about 109,000 people, which was actually #1 in terms of IPTV net adds market share. And the sales -- or revenue grew by 6.6%.

當我們查看 SK 寬帶業務的細分時，它由 3 個組成部分組成。第一個是B2C業務，也就是IPTV，包括IPTV，第二個是我們的高速寬帶，第三個是B2B業務。第一個是B2C業務，第一季度IPTV用戶增長約10.9萬人，實際上IPTV淨增市場份額排名第一。銷售額（或收入）增長了 6.6%。

And moving on to the second business line, which is broadband Internet, thanks to subscriber growth and Kika Internet-related promotion, we were able to achieve 1.4% growth of revenue year-on-year. Moving on to our final division of business, which is B2B. In addition to the growth of our dedicated line businesses and solution businesses for our business customers, there was also growth in our data center business. Therefore, the revenue from this portion of the business increased by 14% on a year-over-year basis.

轉向第二條業務，即寬帶互聯網，得益於用戶增長和Kika互聯網相關推廣，我們實現了收入同比1.4%的增長。繼續我們的最後一個業務部門，即 B2B。除了我們的專線業務和為企業客戶提供的解決方案業務的增長外，我們的數據中心業務也有增長。因此，該部分業務的收入同比增長14%。

And as for our outlook for the entire year of 2022, based on continued IPTV subscriber growth and growth in B2B business, including data center business, we expect 5% growth of revenue on a year-over-year basis, and operating profit growth that is similar to last year.

至於我們對2022年全年的展望，基於IPTV用戶的持續增長和包括數據中心業務在內的B2B業務的增長，我們預計收入同比增長5%，營業利潤增長與去年類似。

Next, I'd like to discuss the cost impact coming from data center expansion. Because data center business requires massive amounts of investment, we are pursuing efficient execution of our investments as well as hedging for financial risks.

接下來，我想討論一下數據中心擴建對成本的影響。由於數據中心業務需要大量的投資，我們追求投資的高效執行以及對沖金融風險。

As for our data centers in Kazan and [Pundam], we have certain arrangements with real estate fund SPCs, and also real estate based security. Therefore, these long-term lease arrangements are in a stable manner. By utilizing these investment arrangements, we were able to reduce financial burdens on making massive amounts of investments for DC, or data center construction, and by utilizing TRC arrangement, we were able to reduce lease costs.

至於我們在喀山和 [Pundam] 的數據中心，我們與房地產基金 SPC 以及基於房地產的安全性有一定的安排。因此，該等長期租賃安排處於穩定狀態。通過利用這些投資安排，我們能夠減輕對DC或數據中心建設進行大量投資的財務負擔，並且通過利用TRC安排，我們能夠降低租賃成本。

In addition, as our financial situation is continuing to improve, we will not only continue to utilize a TRS arrangement, but also making some direct investments as well. Thank you.

此外，隨著我​​們的財務狀況不斷改善，我們不僅會繼續利用TRS安排，還會進行一些直接投資。謝謝。

[Interpreted] The last question will be presented by Hoi Jae Kim from Daishin Securities.

[解讀]最後一個問題將由大信證券的 Hoi Jae Kim 提出。

[Interpreted] I am Kim Hoi Jae from Daishin Securities. I would like to ask some follow-up questions, especially on Metaverse. What is your specific plan on overseas expansion of Metaverse services? What is the time line and schedule? And what will be your main business model?

[翻譯]我是大信證券的金會宰。我想問一些後續問題，特別是關於元界的問題。元界服務海外拓展的具體計劃是什麼？時間線和日程是怎樣的？您的主要商業模式是什麼？

[Interpreted]

[解讀]

Thank you for your question. Here with us, we have Mr. Yang Maeng-seok, Head of Metaverse company. So he's going to provide answers to your question.

謝謝你的問題。和我們在一起的還有Metaverse公司負責人Yang Maeng-seok先生。所以他將為你的問題提供答案。

[Interpreted] First, I'd like to thank you for your questions. As for our Ifland or Metaverse business, we're trying to strengthen our core value, which is communication. So in the first quarter, we have improved meeting-related and community-related services. After the second quarter, we will add our open platform and economic system so that we can create a social Metaverse world in a real sense.

[解讀]首先感謝您的提問。至於我們的Ifland或Metaverse業務，我們正在努力加強我們的核心價值，即溝通。所以第一季度我們改善了會議相關、社區相關的服務。第二季度之後，我們將添加我們的開放平台和經濟系統，以便我們能夠創建一個真正意義上的社交元宇宙世界。

So now users will be able to create their own avatars and spaces. And by utilizing cryptocurrency system, they will be able to trade and invest in content. And going forward, we're going to expand our service to more than 80 countries.

因此，現在用戶將能夠創建自己的頭像和空間。通過利用加密貨幣系統，他們將能夠交易和投資內容。展望未來，我們將把我們的服務擴展到 80 多個國家。

Our English version of Ifland will be launched in as many countries as possible. And after this broad expansion, we're going to identify key markets, and we will work with local partners for joint marketing and localization efforts.

我們的 Ifland 英文版將在盡可能多的國家推出。在這次廣泛的擴張之後，我們將確定關鍵市場，我們將與當地合作夥伴合作進行聯合營銷和本地化工作。

Our short-term goal for Ifland is to increase the number of users. And in the medium to long term, we want to build and utilize our business model based on the open platform. So in the long run, by utilizing the open platform and economic system, we're going to build and implement our business model from which we'll be able to enjoy revenue generation.

我們 Ifland 的短期目標是增加用戶數量。從中長期來看，我們希望建立和利用基於開放平台的商業模式。因此，從長遠來看，通過利用開放平台和經濟系統，我們將建立並實施我們的商業模式，從中我們將能夠享受創收。

[Interpreted] Thank you. With this, we would like to wrap up the Q&A portion of the earnings conference call for the first quarter of 2022 of SK Telecom. Thank you for your participation.

[已翻譯] 謝謝。至此，我們結束了 SK Telecom 2022 年第一季度財報電話會議的問答部分。感謝您的參與。

[Portions of this transcript that are marked Interpreted were spoken by an interpreter present on the live call.]

[本文字記錄中標記為“已翻譯”的部分是由現場通話中的口譯員說出的。]