Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Operating income increased by 13.8% year over year, indicating improved profitability.
- AI business revenue grew by 15.6% year over year, maintaining strong growth momentum.
- AIDC business posted KRW 102 billion in revenue, up 11.1% year over year, establishing itself as a successful business.
- The company is focusing on enhancing user convenience by adding Google Gemini and Liner Pro to its multi-LLM agent.
- SK Telecom plans to open hyperscale AI data centers by 2027, indicating a strong commitment to future growth in AI infrastructure.
Negative Points
- Consolidated revenue decreased by 0.5% year over year due to the sale of certain subsidiaries.
- Net income slightly declined by 0.1% year over year.
- The recent cybersecurity incident has led to an increase in customers switching to other mobile network operators.
- New subscriber sign-ups have been suspended due to the cybersecurity incident, potentially impacting revenue.
- The financial impact of the cybersecurity incident is uncertain, with potential costs related to USIM replacements and administrative penalties.
Q & A Highlights
Q: Can you provide details on the company's response to the recent cybersecurity incident and its impact on customer retention?
A: Ji Hoon Kim, Head of Marketing Strategy, explained that the incident led to an increase in customers switching to other networks. SK Telecom is focusing on customer protection and market stability, bearing some expenses to regain customer trust. The suspension of new subscriber sign-ups is in place to secure USIM supply, and the company is working to stabilize the market quickly.
Q: What is the expected financial impact of the cybersecurity incident on SK Telecom's earnings and shareholder return policy?
A: Yang-Seob Kim, CFO, stated that while the exact financial impact is uncertain, potential costs include USIM replacements and administrative penalties. The company aims to stabilize the market to minimize losses. The shareholder return policy remains stable, with no immediate changes planned.
Q: Can you elaborate on SK Telecom's AIDC business growth and future plans?
A: Hyunwoo Lee, Head of AI DC Development, highlighted that the AIDC business saw double-digit growth. The company plans to expand data centers, including a hyperscale AI data center by 2027, and is developing new business models like GPU as a Service to meet market demands.
Q: How is SK Telecom addressing the suspension of new subscriber sign-ups, and what is the potential revenue impact?
A: Ji Hoon Kim noted that the suspension is to ensure USIM availability for affected customers. The duration of the suspension and its revenue impact depend on market stabilization and government discussions. The company is working to resume sign-ups as soon as possible.
Q: What are the profitability expectations for SK Telecom's data center business?
A: Hyunwoo Lee mentioned that while specific EBITDA margins for the data center business are not disclosed, they are slightly higher than SK Broadband's consolidated EBITDA margin. The company is focusing on expanding AI infrastructure as a foundational business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
