1934 Act Registration No. 1-14418
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULES 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF: AUGUST 2004
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SK TELECOM CO., LTD.
(Translation of registrant's name into English)
99, Seorin-dong
Jongro-gu
Seoul, Korea
(Address of principal executive offices)
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Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F _____
Indicate by check mark whether the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _____ No X
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):82- .)
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In this report on Form 6-K, unless the context indicates or otherwise
requires, references to "we", "us", "our" or the "Company" shall mean SK Telecom
Co., Ltd. and its consolidated subsidiaries.
This report contains "forward-looking statements", as defined in Section
27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S.
Securities Exchange Act of 1934, as amended, that are based on our current
expectations, assumptions, estimates and projections about our company and our
industry. The forward-looking statements are not historical facts and are
subject to various risks and uncertainties, including factors described under
"Additional Factors" in this release. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as
"anticipate", "believe", "estimate", "expect", "intend", "project", "should",
and similar expressions. Forward-looking statements in this release include,
among other things, the discussions of our business outlook and expected
performance, our revenue target, our subscriber target, our estimates for
capital expenditures, our EBITDA margin target and our dividend plans. EBITDA is
a non-GAAP measure that refers to income before interest income, interest
expense, taxes, depreciation and amortization.
We caution you that reliance on any forward-looking statement involves
risks and uncertainties, and that although we believe that the assumptions on
which our forward-looking statements are based are reasonable, any of those
assumptions could prove to be inaccurate, and, as a result, the forward-looking
statements based on those assumptions could be incorrect. In light of these and
other uncertainties, you should not conclude that we will necessarily achieve
any plans and objectives or projected financial results referred to in any of
the forward-looking statements. We do not undertake to release the results of
any revisions of these forward-looking statements to reflect future events or
circumstances.
(SK TELECOM LOGO)
110-110. (KOREAN CHARACTERS)
99, Seorin-dong, Jongro-gu,
Seoul 110-110, Korea
Report to the Korea Stock Exchange
RE : REVISED GUIDANCE FOR 2004
The following statements are current estimates and projections for 2004
reflecting management's judgment and involve a number of risks and uncertainties
that could cause actual results to differ materially from those suggested by
these forward-looking statements. These forward-looking information were based
on various factors and were derived utilizing numerous assumptions. Some of the
assumptions and other important factors that could cause actual results to
differ materially from those in the forward-looking information are identified
below.
1. REVENUE TARGET FOR 2004: APPROXIMATELY KRW 9.8 TRILLION
The Company has previously provided guidance for its revenues for the year
2004 at approximately KRW 10.2 trillion. The Company has adjusted its
expectations and now estimates its 2004 revenues to be KRW 9.8 trillion. The
adjustment was caused by the changes in the underlying assumptions for the
previously reported revenue guidance. Such changes were as follows:
o The Company has adjusted its target with respect to the number of wireless
subscribers in 2004 (discussed below);
o The Company has revised its target with respect to the monthly average
revenue per user ("ARPU") from KRW 46,000 to KRW 44,000 due to the reduced
interconnection revenues, the contract-based discount plans and the
relatively low ARPU among certain of the new subscribers compared to the
existing subscribers given the mature market; and
o The Company has been adversely affected by the changes in the policies
regarding network interconnection fees among the telecommunications service
providers by the Ministry of Information and Communication ("MIC").
Since the Company's previous report, the MIC has also imposed sanctions on
the Company by suspending the Company from signing with new subscribers for 40
days based on its findings that the Company had provided handset subsidies. Such
sanctions have also led the Company to adjust its revenue guidance for 2004.
2. SUBSCRIBER TARGET FOR 2004: APPROXIMATELY 18.7 MILLION
The Company has previously reported that its estimate for the number of new
subscribers for 2004 was 18.8 million. The Company has modified its expectations
and revised its guidance for the number of new subscribers to 18.7 million. The
adjustment of the guidance was caused by the 40-day suspension on attracting new
subscribers described above as well as the Company's policy to improve the
quality of its subscriber base by disconnecting the subscribers who have been
suspended due to delinquent payments.
3. EBITDA MARGIN TARGET: APPROXIMATELY 42%
The Company has also adjusted its EBITDA margin target from 47% to 42%
primarily due to the new network interconnection rates set forth by the MIC and
the increased marketing expenses under the new mobile number portability policy.
These factors have led the Company to record an EBITDA margin of 40% during the
first half. The Company believes that the impact of these factors will stabilize
during the second half of 2004 and thus has adjusted the year-end EBITDA margin
target to 42%.
You should not place undue reliance on forward-looking statements, which
are based on current expectations and speak only as of the date of this report.
The Company is not obligated to publicly release any revisions to
forward-looking statements to reflect events after the date of this report. The
Company provides a detailed discussion of risk factors in periodic SEC filings,
including its Form 20-F, and you are encouraged to review these filings.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SK TELECOM CO., LTD.
By: /s/ Sung Hae Cho
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Name: Sung Hae Cho
Title: Vice President
IR Office
Date: August 4, 2004