안녕하십니까? 오늘 참석해 주신 여러분께 감사의 말씀을 드리며 지금부터 SK텔레콤 2022년 1분기 실적발표 컨퍼런스콜을 시작하겠습니다. 오늘 컨퍼런스콜은 SK텔레콤의 발표가 있은 후 참석해 주신 여러분을 모시고 질의응답 시간을 가질 예정입니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다. 그럼 지금부터 SK텔레콤의 발표가 있겠습니다. Good morning and good evening. First of all, thank you all for joining this conference call and now we will begin the conference call for fiscal year 2022 first earnings earnings results by SK Telecom. This conference will start with the presentation, followed by a divisional Q&A session. If you have a question, please press star one that is star and one on your phone during the Q&A. Now we shall commence the presentation on the fiscal year 2022 Q1 earnings results by SK Telecom.
네, 안녕하십니까? SK텔레콤 IR 담당 정희준입니다. 본 컨퍼런스콜은 SK텔레콤 CFO 겸 Corporate Planning 담당인 김진원 센터장이 2022년 1분기 실적과 함께 향후 경영 계획과 전략 방향을 말씀드린 후에 질의응답을 갖는 방식으로 진행되겠습니다.
Good afternoon. This is Hee Joon Jung, 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.
순차통역으로 진행될 오늘 컨퍼런스콜에는 여러분의 깊은 이해를 위해서 관련 임원들이 함께 참석하고 있습니다. 시작하기에 앞서 모든 향후 전망은 시장 상황 등 변수에 따라 달라질 수 있다는 점을 고려해 주시기 바랍니다. 자, 그럼 CFO의 말씀이 있겠습니다.
Today's conference call will provide consecutive interpretation, and we have with 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.
네, 안녕하십니까? SK텔레콤 CFO 김진원입니다.
Good afternoon. This is Jinwon Kim, CFO of SK Telecom.
SK텔레콤은 지난해 주주가치 극대화를 위한 인적분할을 성공적으로 마무리하고 SKT 2.0을 출범하였습니다. 이와 함께 5대 사업군을 중심으로 법을 재정의하고, 각 사업군별 최적화된 전략 수립과 실행, 그리고 각각의 성장 척도를 통해 전체 기업가치 극대화를 도모하고 있습니다.
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 five 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.
이런 당사의 노력에 대한 투자자와 애널리스트 여러분의 많은 관심과 지지를 부탁드리며, 먼저 2022년 1분기 연결 기준 재무실적에 대해 말씀드리겠습니다.
We ask investors and analysts for your continued support and interest for our efforts. Now let me report on the consolidated financial results of Q1 of 2022.
매출은 4조 2,772억 원을 기록하였습니다. 전분기 대비로는 4분기 계절적 매출의 기저효과 등 영향으로 0.5% 감소했습니다만, 전년 동기 대비로는 4% 증가했습니다.
Consolidated revenue reported KRW 4,277.2 billion. It decreased by 0.5% QoQ due to the base effect from seasonal sales in Q4. On a YOY basis, it increased by 4%.
영업이익은 전년 동기 대비 15.5%, 전분기 대비 90.7% 증가한 4,324억 원을 기록하였습니다. 5G 비중 확대 및 IPTV, 초고속 인터넷 가입자 증가에 따른 매출 성장, 시장 경쟁 안정화 효과와 4분기 계절적 비용 인식에 따른 기저효과 등이 실적 개선을 견인하였습니다.
Operating income posted KRW 432.4 billion, up 15.5% year-on-year and 90.7% QoQ. 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.
당기순이익은 2,203억 원을 기록하였습니다. SK하이닉스 지분법 이익을 제외, 그리고 지난해 1분기에 SK 와이번스 매각이익 반영에 따른 기저효과로 전년 동기 대비 61.5%, 전분기 대비로는 30% 감소하였습니다.
Net income recorded KRW 220.3 billion, posting a 61.5% decline year-on-year and a 30% decline QoQ, mainly due to the exclusion of equity method gains from SK hynix and base effect, where gains of the sale of SK Wyverns were recognized in Q1 of 2021.
별도 기준으로는 매출은 전년 동기 대비 3.2%, 전분기 대비 0.1% 증가한 3조 774억 원을 기록하였으며, 영업이익과 당기순이익은 각각 3,569억 원과 2,520억 원을 기록하였습니다.
On a non-consolidated basis, revenue grew 3.2% year-over-year and 0.1% QoQ to post KRW 3,077.4 billion. Operating income and net income reported KRW 356.9 billion and KRW 252 billion respectively. Having reported the financial highlights of Q1 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. 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. This year marks the fourth year of 5G launch, market stability trend is expected to continue. SK Telecom aims to maintain efficient market observation while refraining from unhealthy marketing competition.
The number of pay TV subscribers of SK Broadband stands at 9.1 million 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 paid TV subscriber base leads to better bargaining power with business partners and improved profitability because of economies of scale. Media and enterprise businesses continue to enjoy top line growth.
[Foreign language]
Established by SK Broadband as a multiple program provider in January last year, Media S 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 SM C&C. Channel S is strengthening the value chain of media business that includes content, channel and platform. As Korea's number one T-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. Advertising business is centered on diverse fixed line and wireless media with a combined traffic 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 T Phone app, MPP platform and addressable TV to pursue an annual growth rate of 40% for the next four years. Moving on to enterprise business. New data centers in Gasan and Siksa were open 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 Seoul metropolitan area to meet the explosive growth in demand for data centers. Cloud business has also been growing thanks to traffic linked revenue growth and increase in customer orders as the scope of cloud business continues to expand.
[Foreign Language]
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. 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 the 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 direct purchase on 11Street, launch breakthrough subscription products through collaboration with popular brands, and offer personalized prescription-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.
[Foreign Language]
ifland, our metaverse platform, achieved a five-fold 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. We also plan to launch an open beta 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. Finally, let me discuss our shareholder return policy. SK Telecom currently pays dividend quarterly, and the total dividend size will be determined within 30%-40% of EBITDA minus CapEx, as was announced before. The board determined the Q1 DPS to be KRW 831. 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. 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. 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.
[Foreign Language]
We will now begin the Q&A session.
[Foreign Language]
Now Q&A session will begin. Please press star one, that is star and one if you have any questions. Questions will be taken according to the order you have pressed star and number one. For cancellation, please press star two, that is star and two on your phone. The first question will be presented by Soyun Shin from Credit Suisse. Please go ahead with your question.
[Foreign Language]
Foreign Good afternoon. This is Soyun Shin from Credit Suisse. Thank you for this opportunity. I would like to ask two questions. The first question is that given your good performance in the Q1 and the competitive landscape in the industry, we expect that there will be better business performance improvement on a non-consolidated basis. I was wondering if there will be any possibility of increase in dividend for 2022. The second question is that now your 5G subscriber base is expanding, and you are doing well in your industry. 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. Thank you.
[Foreign Language]
Thank you very much for the questions.
[Foreigh Lauguage]
As I mentioned in my presentation, our dividend size is determined within 30%-40% of EBITDA minus CapEx. When we look at the growth trend of EBITDA, which is the 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. 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.
[Foreign Lauguage]
The annual dividend size will be determined in consideration of various factors, including business performance and cash flow. 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. Regarding your question on the ARPU growth trend, based on the 5G subscriber growth, Mr. Kim Ji-hyeong, Head of Integrated Marketing Strategy Office, will address this question.
네, 통합 마케팅 전략 담당 김지형입니다. 향후 엔데믹 출현 여부, 또 IoT 비중 확대 같은 여러 가지 변수가 있어서 예측이 어려울 수도 있습니다. 하지만 저희가 2011년 LTE 도입 시기를 돌이켜 보면, 중간에 선택 약정 제도가 도입되었음에도 불구하고 출시 후에 5년 이상 ARPU 상승 트렌드를 보여주었었습니다. 그래서 5G의 고객 사용 기간은 LTE보다 길 것으로 저희가 보고 있어서 좀 더 오랜 기간 ARPU 상승 트렌드를 가져갈 수 있을 것으로 보고 있습니다. 실제로도 handset ARPU가 5G 런칭 이후에 현재까지 꾸준히 상승을 하고 있습니다. 다만 공개하고 있는 ARPU에는 IoT와 second device의 낮은 ARPU가 blend 되어 있고요. 모든 영역에서 digitalization 가속화로 IoT에서는 계속 증가하고 있어서 이 부분을 감안해서 봐주시면 좋을 것 같습니다.
I am Kim Ji-hyeong, 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. 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 five 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 five years. 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. I hope that you will consider this aspect and be mindful of that when you look at our ARPU numbers. Thank you.
다음으로 질문해 주실 분은 대신증권의 김회재님입니다.
The next question will be presented by Kim Hoi-jae from Daeshin Securities. Please go ahead with your question.
안녕하십니까. 대신증권 김회재입니다. 5G 가입자랑 무선 사업 매출 전망 한 번 더 확인 부탁드리려고 하는데요. 앞서 연말 1,300만 명 전망을 그대로 유지한다고 말씀을 주셨는데, 최근 가입자 성장이 살짝 둔화되는 모습도 좀 보이고, 요금제 이슈도 제기되고 있어서 이런 상황에서도 기존 가입자 전망을 유지하시는 건지 궁금하고요. 그리고 매출 전망도 같이 설명 부탁드리겠습니다. 두 번째는 MNO 성장 전략하고요, MNO handset이 계속 감소하고 있는데 여기에 대한 대응 전략도 같이 설명해 주시면 감사하겠습니다.
I am Kim Hoe-jae from Daeshin Securities. Thank you for this opportunity. I would like to ask two 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 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. Given these circumstances, do you think that you can maintain or you will maintain this annual target of 13 million? What is your outlook on MNO revenue? 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. Thank you.
네, 질문 감사합니다.
Thank you for your questions.
저희 이제 분기말 현재 그 5G 가입자는 전분기 대비해서 한 100만 명 정도 증가한 1,088만 명을 기록하였습니다. 연말 저희 5G 가입자 전, 목표를 한 1,300만 예상으로 말씀을 드렸는데요. 현재 지금 진행 중인 거시경제 측면의 불확실성이 여전히 존재하긴 하지만 현 추세라면은 무난히 달성할 수 있을 것으로 보입니다.
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.
이번 분기 이동 전화 매출은 flagship 출시에 따른 선택 약정 중심의 시장 운영, 그리고 신학기 수요가 많은 분기적인 특성, 그리고 seasonal한 기저 효과 등으로 전분기 대비 상승은 다소 주춤했지만 전년 대비로 보면 2.2% 증가했으며, 매출 성장 기준에는 변함이 없을 것으로 전망하고 있습니다.
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 seasonal base effects. You can see that the Q1 MNO revenue grew on a year-over-year basis by 2.2%, and we expect that our revenue growth trend will continue.
가입자 전망과 MVNO 시황에 대해서는 김지형 통합 마케팅 전략 담당께서 추가적으로 답변해 주시겠습니다.
Concerning your question on our subscriber growth trend outlook and our situation with respect to MVNO, Mr. Kim Ji-hyeong, Head of Integrated Marketing Strategy Office will address the question.
이어서 말씀드리겠습니다. 전체 handset 가입자 중에서 5G 가입자 비중이 지난해 말 41.6%에서
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 Q1 . 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. 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. There's also expectation for roaming revenue, grounded that there will be easing of quarantine guidelines. We expect a stable growth trend of our MNO business.
[Foreigh Language]
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 co-prosperity with small MVNOs and our MNO business growth. As a mandatory wholesale network provider, SK Telecom will continue to follow government policies and help develop the MVNO market. 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. By making these efforts, we will continue to retain our MNO subscribers.
The next question will be presented by Lee Jeong-m in from E-TREND. Please go ahead with your question.
[Foreigh Language]
I am Lee Jung Min from a YouTube channel called E-TREND. Thank you for this opportunity. 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. If that is going to be the case, what will be the impact on your business? The second question is related to price plans. Recently, the Presidential Transition Committee made proposals regarding telecom business, which one of them was introduction of middle end price plans. There are some concerns in the market that this would signal a strengthening of regulations for telecom businesses.
What is your position on this, and what do you think will be the potential impact of this on your business? Thank you.
[Foreign Lauguage]
Lee Jeong-m in from E-TREND, 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. SK Telecom may be removed from the index at the end of May when rebalancing happens. Such decision is based on multiple factors, including qualitative elements. We will need to wait for the MSCI report to be released on May thirteenth. If SK Telecom is removed from MSCI in May during rebalancing, some passive funds that follow or that are linked to MSCI will offload. At the end of August last year, our weight was already adjusted, so SK Telecom's weight is currently only 25%.
Market experts predict that the size or the impact of outflow of passive capital would be around KRW 100 billion. At the time of rebalancing last year, the outflow was estimated to be about KRW 900 billion. Compared to that, the impact for this time around is going to be much smaller. Compared to the MSCI adjustment that we went through last August, we cautiously anticipate that the impact this time around will be much smaller. I would like to also add that there are particular methodologies used by MSCI for the index operation and, but 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. Thank you.
[Foreigh Laugauge]
Let me now move on to your question regarding medium and price plans. SK Telecom is considering various price options and plans in consideration of customers' needs, usage patterns and 5G subscriber growth trends.
[Foreigh Laugauge]
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. Because 5G is now dominant in the market, in order to expand customers' choices for various price plans, SK Telecom will continue to consider various price options for customers.
[Foreign Laugauge]
Thank you.
The next question will be presented by Kim Joon-seop from KB Securities. Please go ahead with your question.
[Foreigh Lauagauge]
I am Kim Joon-seop from KB Securities. Thank you for this opportunity. I would like to ask two questions, one regarding your IDC business and the other about your AI business. 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 kinds of strategies you have at SK Telecom to secure additional data center capacities. Secondly, about AI business, I understand you call this AIVERSE. When do you think will we 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?
질문 감사합니다. AIVERSE에 대한 질문은 제가 먼저 답변을 드리고, 데이터 센터에 관련된 질문은 SK Broadband의 Corporate Planning 담당이신 박종석 센터장께서 답변드리는 걸로 하겠습니다.
Thank you for your questions. I'm going to cover your question regarding AIVERSE and Mr. Park Jong-seok, CFO and Head of Corporate Planning of SK Broadband is going to discuss strategies regarding data center.
모두에 말씀드린 것처럼 당사의 구독 서비스인 T Universe하고 Metaverse 플랫폼인 ifland는 작년 출시 이래 지속적으로 이용자를 늘려서, T Universe가 최근 백만 명, Metaverse MAU는 백삼십오만 명을 넘어섰습니다.
Since launched last year, our subscription service T Universe and our metaverse platform ifland have been increasing their users, and recently the number of T Universe users has exceeded 1 million, and metaverse has more than 1.35 million MAUs.
T Universe에서는 이용자 편의성을 빠르게 개선시키고 상품 라인업을 강화하는 데 주력하고 있고요. ifland는 개방형 콘텐츠 플랫폼과 NFT 블록체인 기술 기반의 경제 시스템을 준비하면서, 최초의 초기 시장 진입 단계를 넘어서 본격적인 확산세를 펼쳐나갈 준비를 하고 있습니다.
T Universe has been improving user convenience rapidly and has been preparing for product lineups to offer more or more competitive product lineups. For ifland, we're preparing to introduce open content platform and NFT and blockchain technology based economic system. By making these efforts, we will go beyond the market entry phase to expand these businesses in full swing.
구독과 Metaverse가 포함된 AIVERSE 그룹의 매출은 2021년에 약 2,000억 원 수준이었고요. 당사는 이를 2025년 2조 원까지 성장시킬 앰비션을 가지고 있습니다.
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.
구독과 Metaverse 모두 대규모 CapEx보다는 당사가 가지고 있는 강력한 5G 인프라 그리고 컨택센터, 빌링 시스템 같은 마케팅 자산을 기반으로 성장한 사업이어서 가입자 확산과 함께 수익성도 증대될 것으로 기대하고 있고요. 당사는 구독과 Metaverse 사업이 이와 같은 성장기를 거쳐서 장기적으로 보면 기존의 유무선 통신사업과 어깨를 나란히 할 수 있는 핵심 수익원으로 자리 잡을 것으로 기대하고 있습니다.
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 billing systems. Therefore, we believe that expanded user base will lead to better profitability. 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.
통신사업 경쟁력과 연계적인 측면에서 보자면 ifland와 T Universe의 활성화는 당사의 통신사업 경쟁력 강화에도 도움이 될 것으로 기대하고 있습니다.
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.
Metaverse가 활성화될수록 더 안정적이고 빠른 네트워크 환경과 데이터에 대한 수요가 늘어날 수밖에 없고, 5G 보급이 촉진됨과 함께 당사의 우수한 5G 서비스가 보다 주목받는 계기가 될 것으로 생각합니다.
More usage of Metaverse features and functions will increase demand for more stable and faster networks and demand for data. 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.
구독 역시 T 멤버십과의 시너지를 통해서 당사 무선 사업 가입, 무선 고객, 가입 고객들께 차별적인 경험을 제공하는 대표적인 서비스로 자리매김하여서, 회사의 통신 서비스의 경쟁력을 더욱 견고히 하는 수단이 될 것으로 기대합니다.
Furthermore, subscription services will offer differentiated experiences for our MNO customers through synergies with T membership. By having these representative services, we believe that our MNO service will become even more competitive.
추가 데이터센터 사업 이어서 데이터센터 산업에 대해서 박종석 센터장께서 답변해 주시겠습니다.
Concerning your question regarding our IDC business, Mr. Park Jong-seok, CFO of SK Broadband, will address the question.
안녕하십니까? SK Broadband CFO 박종석 담당입니다. 국내 데이터센터 사업에 대해서 전략과 현황에 대해서 간단히 말씀드리겠습니다. 국내 데이터센터 사업은 트래픽과 퍼블릭 클라우드 수요 증가로 지속적인 성장이 예상되는 시장입니다. 당사는 데이터센터 Capa를 지속 확대하여 사업의 규모와 경쟁력을 키워가는 성장 전략을 갖고 있습니다.
I am Park Jong-seok, 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 data center capacity will continue to increase. Therefore, we are planning to increase our size and also competitiveness.
현재 당사는 수도권에 다섯 개 센터를 운영하고 있습니다. 추가로 서울 수도권과 부산권을 중심으로 데이터센터 신규 구축을 통해 전체 Capa를 IT 파워 200MW 이상으로 키워갈 계획입니다.
Currently, SK Telecom is operating 5 data centers in the Seoul and surrounding metropolitan area. Additionally, we are planning to expand data center capacities in the metropolitan area as well as in the Busan area, thereby securing more than about 200 megawatts of IT power. In Q1, we are already in the process of developing a data center in the Seoul and 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 Busan area by utilizing SK Telecom submarine cable and in connection with Asia Hub Data Center.
The next question will be presented by Neel Anderson from HSBC. Please go ahead with your question.
Thank you very much. Good afternoon. It's a similar question to the previous one on SK Broadband, please. Really I want to ask about two things. The first is, cost synergies following the T Broad integration. Can we expect any more developments there? Secondly, it's about the timing of the revenues and the costs. 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? Thank you.
Thank you for your questions. For these questions, Mr. Park Jong-seok, CFO of SK Broadband will address them.
[Foreign Laugauge]
I am Park Jong-seok, 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 Q1 , our revenue was the total revenue was KRW 1,026 billion, 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. The operating profit was 76.1 billion won. When we look at the breakdown of our SK Broadband business, it has three components.
The first is B2C business which is IPTV, which includes IPTV, and the second is high speed broadband, and the third is B2B business. As for the first one, B2C business, in the Q1 , the IPTV subscriber growth was about 109,000 people, which was actually number one in terms of IPTV net add market share. The sales or revenue grew by 6.6%. Moving on to the second business line, which is broadband internet, thanks to subscriber growth and giga 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 a growth in our data center business. Therefore, the revenue from this portion of the business increased by 14% on a year-over-year basis.
네, 마지막으로 2022년 연간 전체에 대한 전망입니다. 2022년 연간으로는 IPTV 가입자 성장이 지속이 되고, 데이터센터 사업을 필두로 한 B2B 사업이 지속적인 성장을 이루면서, 매출은 5% 수준, 그다음에 영업이익은 전년 대비 견조한 수준의 성장을 기대하고 있습니다.
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.
네, 다음은 데이터센터 사업 관련된 당사의 위치는 비용 구조의 영향에 대해서 간략히 말씀드리겠습니다.
Next, I'd like to discuss the cost impact coming from data center expansion.
데이터센터는 대규모 투자가 수반되는 사업으로, 자금운용 효율화 및 재무적 리스크 헷징 등을 종합적으로 고려하여 다양한 투자 방식을 검토하고 있습니다.
Because data center business requires massive amounts of investment, we are pursuing efficient execution of our investments as well as hedging for financial risks.
현재 당사가 운영 중에 있는 가산 및 분당 IDC는 부동산펀드가 equity 투자자 확보와 부동산 담보 대출을 통해 구축한 센터로, 당사는 부동산 펀드에 투자하는 SPC와 TRS 계약 및 부동산 펀드와 장기 임차 계약을 체결하고 있습니다.
As for our data centers in Gasan and Bundang, we have certain arrangements with real estate fund SPCs and also real estate-based securitization. Therefore, these long-term lease arrangements are in a stable manner.
이러한 투자 방식을 통해 센터 건축, 건축을 위한 대규모 추가 투자로 야기될 수 있는 잠재적 재무 부담을 해소하였으며, 임차 비용 또한 TRS 계약으로 상대적으로 낮은 수준으로 운영할 수 있게 되었습니다.
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 TRS arrangements, we were able to reduce lease costs.
다만 당사의 재무상황이 지속적으로 개선되고 있어, TRS를 통한 조달 방식 외에, 직접 투자를 통한 방식을 병행하는 것에 대해서 긍정적으로 검토를 병행하고 있습니다.
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.
감사합니다.
Thank you.
아, 교환.
네, 말씀하십시오.
현재 질문 대기하고 계시는 분이 더 계신가요?
네, 현재 질문을 신청하신 분이 한 분 계십니다.
네. 그럼 시간 관계상 한 분 질문까지 받도록 하겠습니다.
네, 알겠습니다. 마지막으로 질문해 주실 분은 대신증권의 김회재님입니다. The last question will be presented by 김회재 from 대신증권. Please go ahead with your question.
네, 안녕하세요. 대신증권 김회재입니다. 한 가지만 더 여쭤보겠습니다. Metaverse 사업 관련해서 해외 진출 언급해 주셨는데 좀 구체적인 일정, 가능하시면 설명 부탁드리고요. 비즈니스 모델은 저희가 어떤 거로 이해하면 좋을지도 같이 설명해 주시면 감사하겠습니다.
I am 김회재 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 timeline and schedule, and what will be your main business model?
네, 질문 감사합니다. 지금 이 자리에는 저희 Metaverse 사업을 리드하고 계신 Metaverse CO 담당인 양맹석 담당께서 자리하고 계십니다. 양 담당께서 관련한 내용에 대해서 답변해 주시겠습니다.
Thank you for your question. Here with us, we have Mr. 양맹석, Head of Metaverse CO, so he's going to provide answers to your question.
네, 먼저 질문 주신 대신증권 김회재님께 감사드립니다.
First, I'd like to thank you for your question.
Metaverse 공간에서 소통이라는 ifland의 핵심 가치를 강화하기 위해 1분기까지는 모임과 커뮤니티 기능을 중심으로 서비스를 개선하였고, 2분기 이후에는 오픈 플랫폼, 경제 시스템과 같은 신규 기능들이 추가되면 소셜 Metaverse 월드의 모습이 구체화될 것입니다.
As for our ifland or Metaverse business, we are trying to strengthen our core value, which is communication. In the Q1 , we have improved meeting related and community related services. After the Q2 , we will add open platform and economic system so that we can create a social Metaverse world in a real sense.
오픈 플랫폼을 통하여 Avatar와 공간을 직접 만들 수 있고, Crypto 경제 시스템을 기반으로 후원과 콘텐츠 거래가 가능한 상태에서 하반기에 80여 개국에 진출할 계획입니다.
Now users will be able to create their own avatars and spaces, and by utilizing cryptocurrency, they will be able to trade and invest in content. Going forward, we're going to expand our service to more than 80 countries.
ifland의 글로벌 런칭 버전으로 최대한 많은 국가에 동시 진입한 후 현지의 반응과 관심도를 고려하여 집중할 국가를 선정, 해당 국가의 현지 파트너와 협력하거나 co-마케팅하여 localization하는 전략으로 진행할 예정입니다.
Our English version of ifland will be launched in as many countries as possible. After this broad expansion, we're going to identify key markets, and we will work with local partners for joint marketing and localization efforts.
저희 ifland는 장기적으로는 가입자 확대, 중장기적으로는 개방형 플랫폼을 기반으로 비즈니스 모델을 구축하는 것이 목표이며, 오픈 플랫폼, 경제 시스템 등 BM 구조가 수립되는 시즌부터 본격적으로 매출이 발생할 것으로 기대하고 있습니다. 감사합니다.
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 a business model based on the open platform. 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.
네, 감사합니다. 그럼 Q&A 세션을 여기서 마무리하고요. 2022년 1분기 실적에 대한 conference call을 모두 마치도록 하겠습니다. 감사합니다.
Thank you. With this, we would like to wrap up the Q&A portion of the earnings conference call for the Q1 of 2022 of SK Telecom. Thank you for your participation.