Yahoo Finance

• Consolidated Revenue: KRW17,940.6 billion, up 1.9% year-over-year.

• Operating Profit: Grew 4% year-over-year with an operating margin exceeding 10%.

• Operating Income: KRW1,823.4 billion.

• Net Income: KRW1,438.8 billion, up 25.6% year-over-year.

• AI-Related Revenue Growth: 19% year-over-year.

• Dividend Per Share (DPS) for 2024: KRW3,540, including a quarterly dividend of KRW2,490.

• 2025 Revenue Target: KRW17.8 trillion, approximately 1% growth year-over-year on a normalized basis.

• Warning! GuruFocus has detected 6 Warning Signs with MHGVY.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SK Telecom Co Ltd (NYSE:SKM) reported a 4% year-over-year growth in consolidated operating profit, with an operating profit margin exceeding 10%.

• Consolidated revenue increased by 1.9% year-over-year to KRW17,940.6 billion, driven by growth in fixed and mobile, enterprise, and AI business areas.

• Net income rose by 25.6% year-over-year to KRW1,438.8 billion, attributed to business portfolio restructuring and asset efficiency enhancements.

• AI-related revenue grew by 19% year-over-year, with strategic investments in AI partnerships and the launch of SKT GPU-as-a-Service.

• The company maintained a stable dividend per share (DPS) of KRW3,540, reflecting a commitment to shareholder returns despite economic uncertainties.

Negative Points

• The MNO business experienced a slight slowdown in top-line growth, despite customer-friendly roaming services.

• There are concerns about the future stock price trend due to uncertainty surrounding long-term dividend payouts.

• Marketing costs have been reduced, but the market remains competitive, especially with the lifting of the handset subsidy ban.

• The AI business, while showing growth, still represents a small portion of total revenue, and tangible results are yet to be fully realized.

• The company faces significant economic, industrial, and political changes, both domestically and globally, which could impact future performance.

Q & A Highlights

Q: What are the key focus areas for SK Telecom in conducting AI business, and what is the AI-related revenue outlook? A: Yang-Seob Kim, CFO, explained that SK Telecom restructured into seven business units focusing on telecom and AI. AI-related revenue is materializing in B2B businesses like AIX and AIDC. AIX includes AI cloud and other AI B2B products, posting KRW193 billion in revenue last year, expected to grow 30% this year. AIDC revenue was KRW397.4 billion in 2024, up 13% year-over-year, with expectations for double-digit growth in 2025. The company plans to develop more concrete business models for AI B2C business, including a subscription-based service for A-Dot.