SK Telecom's Q1 2025: Key Contradictions on Dividends, Revenue Growth, and Market Stability

Dividend payout strategy, AIX and AIDC revenue growth expectations, customer switching and market stability, financial impact of cybersecurity incident, and pay TV subscriber growth are the key contradictions discussed in SK Telecom's latest 2025Q1 earnings call.



Financial Performance Impacted by Cybersecurity Incident:
- SK Telecom reported consolidated revenue of KRW 4,453.7 billion in Q1, down 0.5% year-over-year.
- The decline was mainly attributed to the sale of certain subsidiaries and the recent cybersecurity incident, which led to a suspension of new subscriber sign-ups and increased customer switching.

Strong Growth in AI and Data Center Business:
- SK Telecom's AI business revenue grew 15.6% year-over-year, with AI data center business (AIDC) posting KRW 102 billion in revenue, up 11.1% year-over-year.
- The growth was driven by the increasing demand for AI services, the launch of GPU as a Service, and partnerships for hyperscale AI data centers.

Increased Customer Focus and Market Stabilization:
- In response to the cybersecurity incident, the company enhanced customer protection measures, including dual layers of fraud detection systems and USIM protection services.
- This approach aims to regain customer trust and stabilize the market amid increased customer switching, aiming for long-term profit generation.

Dividend Stability Amid Uncertainty:
- SK Telecom maintained the first quarter DPS at KRW 831, despite the recent cybersecurity incident.
- The company focused on maintaining shareholder returns, though the financial impact of the incident on dividends remains uncertain.