SK Telecom's Q4 Earnings: A Deep Dive into AI Growth and Strategic Initiatives

SK Telecom Co. (SKM) recently reported its Q4 earnings, providing valuable insights into the company's performance and strategic initiatives. The company's net income for the quarter totaled $245.1 million, with earnings per share (EPS) of $0.63. Revenue for the period was $3.23 billion. For the full year, SK Telecom reported a profit of $954.4 million, or $2.45 per share, with annual revenue of $13.15 billion.



One of the standout aspects of SK Telecom's earnings report was the significant growth of its AI business. The AI data center unit's sales climbed 13.1% on-year to 397.4 billion won in 2024, driven by increasing demand for AI infrastructure and services. Additionally, SK Telecom secured its first AI cloud order from domestic internet service providers in the second quarter of 2024, planning to scale up its AI cloud business significantly.



SK Telecom's acquisition strategy has also contributed to its overall growth and competitiveness. The company merged Rebellions, an AI fabless startup, and Sapeon Korea, an AI chip processor affiliate, in 2024. This merger led to a one-off profit of 446.5 billion won ($307.1 million) in the fourth quarter of 2024, more than doubling the net profit compared to the previous year. Furthermore, SK Telecom invested $200 million in SMART Global Holdings (SGH), a leading designer and developer of high-performance, high-availability enterprise solutions in the U.S. This investment aligns with SK Telecom's strategy to evolve and develop its existing data center business into an AI data center, which has seen a surge in demand.



In conclusion, SK Telecom's Q4 earnings snapshot highlights the company's strong performance and strategic initiatives, particularly in the AI sector. The company's acquisition strategy, coupled with its focus on expanding AI data center and cloud services, has contributed to its overall growth and competitiveness. As SK Telecom continues to invest in AI technologies and strategic partnerships, it is well-positioned to capitalize on the growing demand for AI services and solutions.