SK TELECOM CO LTD — Interim / Quarterly Report 2004

Feb 9, 2004

1934 Act Registration No. 1-14418 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------- FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE MONTH OF FEBRUARY 2004 ------------------- SK TELECOM CO., LTD. (Translation of registrant's name into English) 99, Seorin-dong Jongro-gu Seoul, Korea (Address of principal executive offices) ------------------- (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 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- .) ================================================================================ February 6, 2004 RESULTS FOR THE YEAR ENDED DECEMBER 31, 2003 *THE INFORMATION CONTAINED HEREIN IS BASED ON KOREAN GAAP. [SK TELECOM] ___________ SEOUL, KOREA, FEBRUARY 6, 2004 - SK TELECOM CO., LTD. (KSE: 017670, NYSE: SKM) ("SKT" OR "THE COMPANY"), THE LEADING WIRELESS TELECOMMUNICATIONS COMPANY IN KOREA, TODAY ANNOUNCED THE RESULTS OF ITS OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003. ___________ This material contains forward-looking statements with respect to the financial condition, results of operations and business of SK Telecom and plans and objectives of the management of SK Telecom. Statements that are not historical facts, including statements about SK Telecom's beliefs and expectations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of SK Telecom to be materially different from any future results or performance expressed or implied by such forward-looking statements. SK Telecom does not make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained in this management presentation, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Such forward-looking statements were based on current plans, estimates and projections of SK Telecom and the political and economic environment in which SK Telecom will operate in the future, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and SK Telecom understates no obligation to update publicly any of them in light of new information or future events. Additional information concerning these and other risk factors are contained in SK Telecom's latest annual report on Form 20-F and in SK Telecom's other filings with The U.S. Securities and Exchange Commission (SEC). [GRAPHIC SK Telecom] CONTENTS

[GRAPHIC SK Telecom] I. FINANCIAL HIGHLIGHTS SUMMARY OF INCOME STATEMENT

1) EBITDA = Operating income + Depreciation + R&D related depreciation within the R&D expense OTHER MAIN ITEMS

______________ 1 [GRAPHIC SK Telecom] II. FINANCIAL RESULTS 1. INCOME STATEMENT A. OPERATING REVENUE

1) SIGN-UP FEES - Sign-up fee in 2003 decreased due to the reduction in subscriber addition. 2) CALL CHARGES - Despite the tariff cut in January 2003, call charges in 2003 increased due to the increase in MOU and subscriber numbers. 3) VAS & others - VAS and others sales in 2003 increased due to the increased usage of value-added services such as Color Ring. VAS and others sales in the 4th quarter decreased compared to the previous quarter due to the reduction in Caller ID service fee. 4) WIRELESS INTERNET SALES - Due to the continued increase in the usage of wireless internet, the QoQ sales growth rate has accelerated from 11% in the 3rd quarter to 22% in the 4th quarter. - Accordingly, wireless internet sales accounted for 18.5% of cellular revenue in the 4th quarter. 5) INTERCONNECTION REVENUE - LM revenue in 2003 decreased due to the reduction in interconnection rate and KT's direct connection to HLR. ______________ 2 [GRAPHIC SK Telecom] B. OPERATING EXPENSES

1) For details, please refer to non-consolidated statements of income in appendix 1) LABOR COST - Increase in 2003 labor cost was due to incentive bonus and wage increase. - The 4th quarter labor cost was higher compared to the previous quarter because the wage increase for 2003 was finalized in the quarter and retroactively recognized in the 4th quarter. 2) COMMISSIONS PAID - Marketing commissions Initial commissions in 2003 decreased due to the reduction in subscriber addition and lower commission per subscriber. Monthly commissions in 2003 decreased due to reduction in the subscriber numbers which require monthly commission payment to retail outlets. Retention commissions increased due to the increased commission for handset changes in preparation for Mobile Number Portability. - Other commissions: The increase was mainly due to the increase in the payment of Information Usage Fee to Content Provider as the wireless internet usage increased. 3) ADVERTISING COST - Relatively low advertising cost in the 3rd quarter resulted in higher 4th quarter number. 4) NETWORK INTERCONNECTION COST - SKT's portion of Universal Service Fund (USF) was finalized in the 4th quarter and 45.2 bn won('02. 9.5bn/'03. 35.7bn) of contribution reimbursement to SKT was reflected in the 4th quarter NOTE) SKT USF BREAKDOWN

______________ 3 [GRAPHIC SK Telecom] C. NON-OPERATING ITEMS

1) For details, please refer to non-consolidated statements of income in appendix 1) OTHERS IN OTHER EXPENSES - Loss on disposal of Hanaro telecom securities(44.8 bn won) was recognized in the 4th quarter. 2. CAPITAL EXPENDITURE

1) NETWORK - Investment in base stations and repeaters for coverage and capacity expansion decreased YoY. 2) NON-NETWORK - The increase was mainly due to the increase in marketing relating expenditure to strengthen distribution channels. ______________ 4 [GRAPHIC SK Telecom] 3. BALANCE SHEET

1) Debt/Equity Ratio = Interest-bearing debt / Shareholders' equity * Interest-bearing debt = Short-term borrowings + Current portion of long-term debt + Long-term borrowings & corporate bonds 1) CASH & MARKETABLE SECURITIES - Managing cash balance to a minimum level at the end of 2002 in consideration of the merger with SK IMT led to the increase in the item at the end of 2003. At the end of 2002, SK IMT's cash balance was about 960 bn won. - Decrease in 4th quarter was due to the utilization of cash proceeds (120 bn won) from Hanaro Telecom's CP. 2) INVESTMENT ASSETS - The YoY decrease was due to the merger with SK IMT and the sell-off of KT shares due to the share exchange with KT. - The QoQ decrease was due to the sale of Hanaro Telecom securities. 3) INTANGIBLE ASSETS - The YoY increase was due to the frequency usage right from the merger with SK IMT. ______________ 5 [GRAPHIC SK Telecom] III. OPERATING RESULT

1) December 2003 MOU is estimate. 2) Excludes others in wireless internet sales such as financial enabler, Solution/Platform sales, etc. ______________ 6 [GRAPHIC SK Telecom] IV. APPENDIX (NON-CONSOLIDATED STATEMENTS OF INCOME)

______________ 7 [GRAPHIC SK Telecom] IV. APPENDIX (NON-CONSOLIDATED BALANCE SHEETS)

1) Cash & marketable securities : Cash & cash equivalent, marketable securities & short-term financial instruments are included 2) Investment securities : Investments in affiliates with more than 20% interest, listed companies & non-listed companies are included ______________ 8 [GRAPHIC SK Telecom] V. IR CONTACTS

Thank you. ______________ 9 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 -------------------------- Name: Sung Hae Cho Title: Vice President Date: Feb 06, 2004