What were the key takeaways from SK Telecom's earnings call?

What does SK Telecom do and what are its main business segments?

What is the market's earnings forecast for SK Telecom next quarter?

What is SK Telecom's latest dividend and current dividend yield?

What guidance did SK Telecom's management provide for the next earnings period?

What is SK Telecom's gross profit margin?

Did SK Telecom beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for SK Telecom year over year?

- **Q3 Financial Impact**: 12.2% YoY revenue decline, driven by cybersecurity incident penalties and tariff discounts; no dividend declared.
- **Mobile Recovery**: 5G subscribers up 240,000 QoQ; Air service launched for unlocked devices with minimal ARPU impact.
- **AI Growth**: AI business revenue +35.7% YoY; Ulsan AI DC construction underway, targeting 2027 contribution.
- **Dividend Outlook**: Q4 dividend decision pending; 2026 dividend restoration planned post-incident resolution.
- **A. Service Expansion**: 10.56 million subscribers; paid model to launch in H1 2026.

**【CFO Financial Commentary】**
- Q3 2025 revenue: KRW 3,978.1 billion (-12.2% YoY), driven by a 50% tariff discount and cybersecurity incident penalties.
- Operating income: KRW 48.4 billion (-90.9% YoY), with a KRW 134.8 billion fine from the Personal Information Protection Commission.
- No dividend declared for Q3 due to financial impact of incident; Q4 dividend decision pending full-year results.

**【Business Updates】**
- **Mobile Recovery**: 5G subscribers +240,000 QoQ to 17.26 million; broadband/IPTV net additions.
- **Air Launch**: Digital SIM-only service for unlocked devices, targeting 20-30s users, with pricing similar to existing plans (minimal ARPU impact).
- **AI Growth**: AI business revenue +35.7% YoY; AI DC revenue +53.8% YoY to KRW 149.8 billion.
- **Ulsan AI DC**: Construction underway, expected to begin contributing from 2027; Seoul DC project in early stages.
- **A. Service Expansion**: 10.56 million subscribers (as of Q3), with paid model planned for H1 2026.

**【Q&A Highlights】**
- **Q4 Outlook**: Mobile revenue decline expected to ease, but cautious on operating profit due to seasonal spending.
- **Customer Churn**: Net neutral balance in Q3; focus on qualitative recovery through tailored products.
- **Dividend Policy**: 50% of adjusted consolidated net income target; 2026 dividend restoration contingent on performance.
- **AI Data Center Expansion**: Exploring global partnerships for APAC projects; targeting 300 MW capacity by 2030.

SK Telecom Co., Ltd. (SKM) Q3 2025 Earnings Call Transcript

- **Substantial Financial Impact**: Q2 net income down 76.2% YoY to KRW 83.2B, with 2025 revenue guidance cut 4.7% to KRW 17T.
- **Customer Trust Investment**: KRW 700B IT security spend over 5 years, 50% tariff discounts, and 10M+ A. subscribers.
- **AI Growth Engine**: AI revenue up 13.9% YoY, Ulsan AIDC targeting KRW 1T annual revenue by 2030.
- **Sovereign AI Leadership**: Selected for government AI model development, launched open-source A.X 3.1 LLM, and testing proprietary AI chips.

**【CFO Financial Commentary】**
- **Cybersecurity Incident Impact**: Q2 revenue declined 1.9% YoY to KRW 4.3388T due to subscriber losses and USIM replacement costs. Operating income fell 37.1% YoY to KRW 338.3B, with a 76.2% YoY drop in net income to KRW 83.2B.
- **Customer Trust Measures**: KRW 700B invested over 5 years for IT security, including free mobile security solutions, 50% tariff discounts, and 50GB/month data gifts.
- **AI Business Growth**: AI revenue grew 13.9% YoY, with AIDC up 13.3% YoY to KRW 108.7B and AIX up 15.3% YoY to KRW 46.8B. A. subscribers surpassed 10M in July.
- **Ulsan AIDC Expansion**: 300MW+ capacity by 2030 with AWS, targeting KRW 1T annual revenue. Construction begins late 2025, with SK Broadband CapEx up ~10% YoY.

**【Q&A Key Highlights】**
- **Financial Impact**: Q2 one-off costs KRW 250B, with largest impact in Q3 (50% tariff discounts). Annual revenue guidance lowered to KRW 17T from 17.8T.
- **Dividend Policy**: Q2 DPS maintained at KRW 831, but full-year dividend decisions pending earnings visibility.
- **Customer Win-Back**: Restored subscription years for returning customers, 500B KRW Customer Appreciation Package, and post-handset subsidy law abolition promotions.
- **Sovereign AI Leadership**: Selected for government AI model development, launched A.X 3.1 open-source LLM, and testing Rebellion's ATOM AI chip.
- **AIDC Investment**: Ulsan AIDC to be Korea's largest, with 300MW+ capacity by 2030. SK Broadband CapEx growth offset by stable SK Telecom CapEx due to completed 5G rollout.

SK Telecom Co., Ltd. (SKM) Q2 2025 Earnings Call Transcript

- **AI & AIDC Growth Drivers**: AI business +15.6% YoY, AIDC revenue hits KRW 100B/Q
- **Cybersecurity Crisis Management**: 100% USIM protection enrollment, temporary new user pause
- **Data Center Expansion Ambition**: Hyperscale AI DCs with global partners by 2027
- **Dividend Stability**: Maintained DPS despite cybersecurity incident uncertainty

**【CFO Financial Overview】**
- Q1 2025 Revenue: KRW 4.45T (-0.5% YoY) due to subsidiary sales, but Operating Income up 13.8% YoY to KRW 567.4B
- Net Income: KRW 361.6B (-0.1% YoY) driven by lower marketing/depreciation costs
- AI Business: +15.6% YoY revenue growth, AIDC revenue KRW 102B (+11.1% YoY)
- AIX Revenue: KRW 45.2B (+27.2% YoY) from AI B2B services
- Dividend Policy: Q1 DPS maintained at KRW 831 despite cybersecurity incident

**【Cybersecurity Incident Response】**
- **Customer Protection Measures**: 
  - 100% eligible customers enrolled in USIM protection service
  - Upgraded USIM protection for roaming customers
  - Simplified eSIM replacement process
  - Enhanced fraud detection system at max level
- **Operational Impact**: 
  - Temporarily suspended new subscriber sign-ups since May 5
  - Monitoring market for potential customer churn
  - Exploring all-cost scenarios for USIM replacement (24M customers)

**【AIDC Business Expansion】**
- **Short-Term Growth**: 
  - GPU-as-a-Service generating incremental profit
  - 8 operational data centers including new Yangju facility
- **Mid-Long Term Vision**: 
  - Hyperscale AI data centers with global tech partners by 2027
  - Modular & dedicated AI data center models
  - Seoul metropolitan area expansion pipeline through 2030
- **Profitability**: AIDC EBITDA margin slightly above SK Broadband consolidated margin

SK Telecom Co., Ltd. (SKM) Q1 2025 Earnings Call Transcript

- **AI-Driven Growth**: 2024 AI-related revenue surged 19%, with AIX targeting 30% growth in 2025. A. subscription plans and Aster's global expansion signal B2C monetization acceleration.
- **Infrastructure Leadership**: SK Telecom is building hyperscale AI data centers using SK Group's GPU and energy tech, positioning for Asia-Pacific AI infrastructure dominance.
- **Stable Shareholder Return**: Maintained DPS at KRW 3,540 in 2024, prioritizing cash dividends while exploring buybacks if undervalued.
- **Operational Resilience**: 2024 OpEx savings and CapEx efficiency will sustain in 2025, balancing AI investments with financial stability.

**【CFO Financial Summary】**
- **2024 Financial Highlights**: Consolidated revenue reached KRW 17.94 trillion (+1.9% YoY), operating profit grew 4% to KRW 1.82 trillion, and net income rose 25.6% to KRW 1.438 trillion. Operational improvements reduced marketing and D&A costs, while portfolio rebalancing prioritized high-profit businesses.
- **AI Business Momentum**: AI-related revenue increased 19% YoY, with AIX (B2B AI solutions) and AIDC (AI data centers) driving growth. AIX revenue was KRW 193 billion in 2024, targeting 30% growth in 2025, while AIDC revenue reached KRW 397.4 billion (+13% YoY). The launch of GPU-as-a-Service with Lambda in Q4 2024 marks a strategic shift to monetize AI infrastructure.

**【AI Strategy & Growth】**
- **B2C AI Expansion**: A., SK Telecom's personal AI agent, achieved 160% YoY user growth to 8.27 million, with plans to introduce a subscription-based paid service in 2025. Aster, the global AI agent, will launch a beta service in the U.S. in H1 2025, targeting daily task management and agentic AI capabilities.
- **Infrastructure Investment**: SK Telecom is building hyperscale AI data centers leveraging SK Group affiliates' expertise in GPUs, energy solutions, and DCIM (Data Center Infrastructure Management). The focus is on creating the most affordable and efficient AI infrastructure ecosystem, with medium-term goals to become an AI data center hub in Asia-Pacific.

**【Shareholder Return & Capital Allocation】**
- **Dividend Policy**: 2024 DPS maintained at KRW 3,540 (same as 2023) to balance growth investments in AI and uncertain macro conditions. 2025 plans emphasize stable cash dividends, with potential share buybacks if undervalued.
- **CapEx Optimization**: 2025 CapEx will focus on network quality, AI growth, and strategic partnerships. Free cash flow improvements will fund AI infrastructure, SK Broadband equity acquisition, and operational efficiency.

**【Q&A Key Takeaways】**
- **AI Monetization**: AIX's 30% growth target in 2025 comes from AI cloud, vision, and AT use cases (e.g., A. Biz automation). A. subscription plans will bundle telecom services, enhancing MNO competitiveness.
- **Market Competition**: Post-handset subsidy ban, stable handset market dynamics reduce over-competition. SK Telecom focuses on personalized value and AI-driven differentiation.
- **Operational Efficiency**: 2024 OpEx savings and CapEx efficiency will sustain in 2025, supporting AI investments while maintaining financial stability.
- **Global AI Expansion**: Aster's U.S. beta launch in H1 2025 highlights SK Telecom's ambition to compete globally with agentic AI services, complemented by partnerships with Perplexity and Anthropic.

SKM

SKM fundamentals

Earnings Call

You can ask Aime