SK Telecom Q1 2025 Earnings Report

SK Telecom EPS Results

• Actual EPS: $0.65
• Consensus EPS: $0.61
• Beat/Miss: Beat by +$0.04
• One Year Ago EPS: N/A

SK Telecom Revenue Results

• Actual Revenue: $3.18 billion
• Expected Revenue: $3.12 billion
• Beat/Miss: Beat by +$51.89 million
• YoY Revenue Growth: N/A

SK Telecom Announcement Details

• Quarter: Q1 2025
• Date: 5/12/2025
• Time: Before Market Opens
• Conference Call Date: Monday, May 12, 2025
• Conference Call Time: 3:00AM ET

SK Telecom (NYSE:SKM) Co., Ltd. is a South Korean telecommunications company and a member of the SK Group. Headquartered in Seoul, the company provides mobile communications services, including voice, messaging, wireless data, 5G connectivity and related subscription services, primarily in South Korea.

Through its affiliates and business operations, SK Telecom also offers fixed-line broadband internet, internet protocol television and media services. Its enterprise portfolio includes cloud computing, data center services, information and communication technology solutions, artificial intelligence and Internet of Things services for businesses and public-sector customers.

The company traces its origins to Korea Mobile Telecommunications, established in 1984, and adopted the SK Telecom name in 1998 following its incorporation into the SK Group. SK Telecom serves customers in South Korea and pursues international opportunities through technology partnerships, investments and business relationships in areas such as artificial intelligence, telecommunications and digital infrastructure.

SK Telecom Q1 2025 Earnings Call Transcript

Key Takeaways

• Operating income increased 13.8% year-over-year to KRW 567.4 billion on reduced marketing and depreciation expenses, despite a 0.5% revenue dip to KRW 4,453.7 billion.
• The company suspended new subscriber sign-ups and is managing a cybersecurity incident involving customer data leaks, isolating infected systems and enrolling all eligible users in U SIM protection.
• AI and data center segments maintain strong momentum: AIDC revenue grew 11.1% to KRW 102 billion, AIX (AI cloud) rose 27.2% to KRW 45.2 billion, and SK Telecom targets hyperscale AI data centers by 2027 with GPU-as-a-service offerings.
• The board approved a Q1 dividend of KRW 831 per share and amended its articles to set record dates after dividend determination, reinforcing a commitment to stable shareholder returns.
• 5G and broadband subscriptions continued to grow, and ADOT surpassed 9 million cumulative users while integrating multi-LLM agents and prepping for a US launch of its Esther open data service.

Presentation

[Operator]

Good morning and good evening. Thank you all for joining the conference call for the SK Telecom earnings results. This conference will start with a presentation followed by a Q&A session. If you have a question, please press star and one on your phone during the Q&A. Now we will begin the presentation on SK Telecom's first quarter of fiscal year 2025 earnings results.

[Hee Jun Chung, Vice President of Investor Relations at SK Telecom]

안녕하십니까, SK Telecom IRO 정해준입니다. 지금부터 2025년 1분기 실적 발표 컨퍼런스콜을 시작하겠습니다. 오늘 컨퍼런스콜은 재무 실적 및 사업 현황 등에 간단히 먼저 말씀드리고 Q&A를 갖는 순서로 진행하겠습니다. 그리고 향후 전망과 관련된 내용은 시장과 경영 환경 등 다양한 변수에 따라서 달라질 수도 있다는 점을 미리 말씀드립니다. 그럼 김양섭 CFO의 말씀이 있겠습니다.

[Translator]

Good afternoon, I am Hee Jun Chung, IRO of SK Telecom. Let us begin the earnings conference call for the first quarter of 2025. Today, we will first deliver a presentation on the financial and business highlights followed by a Q&A session. Please note that all forward-looking statements are subject to change depending on various factors such as market and management situations. Let me now present our CFO.

[Yang-Seob Kim, CFO at SK Telecom]

안녕하십니까, SK Telecom CFO Yang Seob Kim입니다.

[Translator]

Good afternoon, this is Yang Seob Kim, CFO of SK Telecom.

[Yang-Seob Kim, CFO at SK Telecom]

실적 발표에 앞서 지난달 발생한 사이버 침해 사고와 관련하여 투자자 여러분들의 우려가 클 것으로 생각됩니다. 현재 민간 합동 조사단이 정확한 유출 원인과 규모 등을 파악하고 있으며 회사 차원에서는 근본 사고와 관련한 어떠한 고객 피해도 발생하지 않도록 총력을 다하고 있습니다.

[Translator]

Before I start the earnings presentation, I understand that there are great concerns among investors regarding the cybersecurity incident that happened last month. A joint public-private investigation team is currently looking into possible causes and scope of the incident, and SK Telecom is doing its utmost to protect our customers from any damage or loss related to the recent incident.

[Yang-Seob Kim, CFO at SK Telecom]

침해 인지 즉시 해킹 의심 장비를 격리 조치하였고 비정상 인증 시도 차단 시스템인 FDS를 최고 수준으로 가동하고 있으며 현재 적용 가능한 모든 SK Telecom 고객을 대상으로 유심 보호 서비스 가입을 완료한 상태입니다. FDS와 유심 보호 서비스의 이중 장치는 유심 교체와 동일한 효과를 내고 있습니다. 금일부터는 업그레이드된 유심 보호 서비스가 순차 적용되어 로밍 시에도 이용할 수 있게 될 예정입니다.

[Translator]

Immediately after detecting data leak, systems suspected of malware infection were isolated. Also, an enhanced fraud detection system is running at its maximum level to block suspicious authentication attempts. As of now, all the eligible SK Telecom customers have enrolled in USIM Protection Service. The dual layers of the FDS and USIM Protection Service bear the same effect of USIM replacement. Starting from today, the upgraded USIM Protection Service will be applied sequentially to provide protection during roaming as well.

[Yang-Seob Kim, CFO at SK Telecom]

아울러 신규 모집 중단을 포함해서 단기간에 최대한 많은 유심을 확보하는 등 다양한 방안을 모색하고 있습니다. 본 건과 관련한 주요 진행 상황은 추후에도 투자자 여러분들과 수시로 공유하도록 하겠습니다.

[Translator]

We are also looking for various ways to address the situation, including securing as many used chips as possible in the short span of time, along with the suspension of new subscriber signups. We will keep the investors updated on matters related to the incident.

[Yang-Seob Kim, CFO at SK Telecom]

consolidated financial results for the first quarter.

[Translator]

Let me now report on the consolidated financial results for the first quarter of 2025.

[Yang-Seob Kim, CFO at SK Telecom]

of some subsidiary sales, it decreased by 0.5% compared to the same period last year.

[Translator]

Consolidated revenue reported KRW 4.4537 trillion, down 0.5% year over year due to the sale of certain subsidiaries.

[Yang-Seob Kim, CFO at SK Telecom]

영업이익은 전년 동기 대비 13.8% 증가한 KRW 567.4 billion을 기록하였습니다. 5G 성숙기 진입에 따라 마케팅 비용과 감가상각비가 감소세를 지속하며 수익성 개선 흐름이 이어졌습니다.

[Translator]

Operating income posted KRW 567.4 billion, up 13.8% year over year. Profitability improved thanks to the decline in marketing and depreciation costs as the 5G market matures.

[Yang-Seob Kim, CFO at SK Telecom]

당기순이익은 전년 동기 대비 0.1% 감소한 KRW 361.6 billion을 기록하였습니다.

[Translator]

Net income posted KRW 361.6 billion, down 0.1% year over year.

[Yang-Seob Kim, CFO at SK Telecom]

다음으로 사업별 성과에 대해 말씀드리겠습니다.

[Translator]

Next, let me report on business highlights.

[Yang-Seob Kim, CFO at SK Telecom]

business showed a steady increase in 5G and high-speed internet subscribers.

[Translator]

Fixed and mobile business saw a continued increase in 5G and broadband subscribers.

[Yang-Seob Kim, CFO at SK Telecom]

AI 사업은 이번 분기에도 전년 동기 대비 15.6% 매출 성장을 기록하며 성장 기조를 이어가고 있습니다.

[Translator]

AI business revenue grew 15.6% year over year, maintaining a growth momentum.

[Yang-Seob Kim, CFO at SK Telecom]

AI DC 사업은 전년 동기 대비 11.1% 성장한 KRW 102.0 billion의 매출을 기록하며 분기당 KRW 100.0 billion 이상의 매출을 만들어내는 사업으로 확고히 자리 잡았습니다. 단기적으로는 데이터센터 가동률을 더욱 빠르게 높이는 한편 GPU as a Service 등을 통해 추가 수익을 창출하고 중장기적으로는 하이퍼스케일급 AI DC를 준비해 나갈 계획입니다.

[Translator]

AI DC business posted KRW 102 billion of revenue in the first quarter, up 11.1% year over year. It is firmly established as a successful business with more than KRW 100 billion of quarterly revenue. In the short term, we will quickly increase data center utilization rates while generating additional profit through services such as GPU as a Service. In the mid to long run, we will prepare for hyperscale AI DC business.

[Yang-Seob Kim, CFO at SK Telecom]

AI X 사업은 전년 동기 대비 27.2% 성장한 KRW 45.2 billion의 매출을 기록하였습니다. AI Cloud 매출이 꾸준히 증가하는 가운데 AI B2B도 금융권 화상 상담과 AI 마케팅 신규 수주 등으로 실적 성장에 기여하고 있습니다. ADATBIZ는 베타 테스트를 진행 중이며 기능을 개선하여 이르면 상반기 중 정식 출시할 계획입니다.

[Translator]

AI X revenue was KRW 45.2 billion, up 27.2% year over year. Along with the steady growth of AI Cloud revenue, AI B2B business has contributed to earnings thanks to virtual consultation services and AI marketing services for financial institutions. ADATBIZ is conducting a beta test and is scheduled for an official launch in the first half of the year after further improving functionality.

[Yang-Seob Kim, CFO at SK Telecom]

ADATTIC AI는 금년 내 사업성을 증명하고자 합니다. 이번 분기 누적 가입자 900만 명을 돌파하며 수익화 기반을 강화한 ADAT은 멀티 LLM 에이전트에 구글 제미나이와 라인어플을 추가하며 이용자 편의성 제고에 집중하고 있습니다. 미국에서 오픈 베타 서비스를 진행한 애스턴은 하반기 정식 서비스 런칭을 목표로 하고 있습니다.

[Translator]

In addition, we are determined to demonstrate business feasibility of ADATTIC AI within this year. ADAT has strengthened the profit base with cumulative subscribers surpassing 9 million in the first quarter. It is focusing on enhancing user convenience by adding Google Gemini and Liner Pro to the multi-LLM agent. Aster has completed an open beta service in the United States and is preparing for an official launch in the second half of the year.

[Yang-Seob Kim, CFO at SK Telecom]

이어서 주주 환원에 대해 말씀드리겠습니다. 2025년 1분기 배당금은 주당 KRW 830으로 이사회에서 결정하였으며 배당 기준일은 5월 31일입니다. 3월 정기 주총에서의 정관 변경을 통해 분기 배당도 배당금을 먼저 확정한 후 배당 기준일을 지정하도록 절차를 변경하여 배당의 예측 가능성을 높였습니다.

[Translator]

Let me now turn to shareholder returns. The board of directors resolved to set the first quarter DPS at KRW 831 with the record date of May 31. As a result of the amendments to the articles of incorporation approved at the AGM in March, the record date for quarterly cash dividends is designated after the dividend amount is determined in an effort to enhance predictability of cash dividends.

[Yang-Seob Kim, CFO at SK Telecom]

SK Telecom은 이번 사이버 침해 사고를 계기로 사업과 경영 전반을 되돌아보고 본원적 경쟁력을 더욱 강화하겠습니다. 고객은 회사의 근간이며 고객 가치 제고는 궁극적으로 기업 가치와 주주 가치 제고로 직결됩니다. 회사의 모든 역량을 고객 보호에 집중함으로써 지난 40여 년간 이어온 SK Telecom에 대한 고객과 투자자 여러분의 신뢰를 지켜나갈 수 있도록 하겠습니다.

[Translator]

In light of the recent cybersecurity incident, SK Telecom will conduct a thorough and comprehensive review of the business management and further strengthen fundamental competitiveness. Customers are the foundation of the company, and customer value enhancement is ultimately linked to corporate value and shareholder value enhancement. We will mobilize all the resources within the company for customer protection so that we can regain and uphold the trust our customers and shareholders have placed in us for over 40 years.

[Yang-Seob Kim, CFO at SK Telecom]

그 어느 때보다 투자자와 애널리스트 여러분의 격려와 응원을 부탁드립니다. 감사합니다.

[Translator]

Now, more than ever, we ask for your continued support and encouragement. Thank you.

[Yang-Seob Kim, CFO at SK Telecom]

네, 그럼 지금부터 Q&A 세션을 시작하겠습니다.

[Hee Jun Chung, Vice President of Investor Relations at SK Telecom]

지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다.

[Operator]

Now, Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.

[Hee Jun Chung, Vice President of Investor Relations at SK Telecom]

처음으로 질문해 주실 분은 KB Securities의 Kim Joonsop 님입니다.

[Operator]

The first question will be provided by Joon-sop Kim from KB Securities. Please go ahead with your question.

[Jongseok Kim, Team Head at KB Kookmin Bank]

네, 질문 기회 주셔서 감사합니다. KB증권 김준섭입니다. 이번 사이버 침해 사고 건 관련해서 두 가지 질문을 드려보고 싶은데요. 첫 번째는 번호 이동 관련한 사항입니다. 이번 사고로 인해 번호 이동 가입자 유출 숫자가 평상시보다 좀 증가한 것으로 알고 있는데요. 이에 대한 회사의 입장이나 대응 방안이 있으신지 궁금합니다. 그리고 두 번째는 신규 모집 관련 건입니다. 사이버 침해 사고 이후 최근에 신규 모집을 중단하셨는데 이 중단 기간이 얼마나 지속될지 또 모집 중단으로 매출에 어느 정도 영향이 있을지 궁금합니다. 답변 주시면 현 상황을 이해하는 데 큰 도움이 될 것 같습니다. 감사합니다.

[Translator]

I'm Kim Jongseok from KB Securities. Thank you for the opportunity to ask you questions. I have two questions related to the recent cybersecurity incident. The first one is about customers switching to another mobile operators. I understand that the number of customers switching to other MNO operators has been increasing more than the historical level, so I'd like to understand the company's position and response measures. Secondly, you have recently decided to suspend new subscriber signups related to the recent cybersecurity incident. I'd like to understand for how long the suspension will be maintained and what will be the potential impact of this decision on your revenue. If you can answer these questions, it will help us understand the current situation. Thank you.

[Yang-Seob Kim, CFO at SK Telecom]

질문 감사합니다. 두 가지 질문 관련해서는 마케팅 전략 본부장이 답변 드리겠습니다.

[Translator]

Thank you for your questions. As for your two questions, Mr. Yoon Jae-woong, Head of Marketing Strategy, will answer them.

[Yoon Jae-woong, Head of Marketing Strategy at SK Telecom]

안녕하세요. 마케팅 전략 본부장 윤재웅입니다. 금번 해킹 사고 초반에 유심 교체나 유심 보호 서비스 가입자가 몰려들면서 일부 혼란과 고객의 불만이 있었던 것은 사실입니다. 이 과정에서 타사로 번호 이동을 한 고객 수가 평상시보다는 많이 증가한 것으로 확인이 됩니다.

[Translator]

I am Yoon Jae-woong, Head of Marketing Strategy. In the beginning of this cybersecurity incident, it is true, yes, that there were some inconveniences and confusion due to the surge in customers demanding USIM replacements or enrolling in USIM Protection Service. In this process, there was an increase in the number of customers who are switching to other networks.

[Yoon Jae-woong, Head of Marketing Strategy at SK Telecom]

고객 베이스가 회사의 가장 중요한 자산이고 중장기 수익 창출의 근간이라는 점을 감안했을 때 고객의 신뢰를 확보하는 것과 고객 락킹을 위해서는 일정 수준의 비용 소요가 불가피할 것으로 보입니다.

[Translator]

We well understand that the customer base is the most valuable asset of SK Telecom and a foundation for medium to long-term profit generation. Therefore, it will be inevitable that we have to bear some expenses to regain the trust of our customers and lock them in.

[Yoon Jae-woong, Head of Marketing Strategy at SK Telecom]

당사는 고객 보호와 시장 안정화를 위해서 만전을 기하고 있으며 시장 상황을 지속적으로 모니터링하면서 대응해 나갈 것입니다.

[Translator]

Currently, we are doing everything we can for customer protection and market stability, and we will continue to closely monitor the market situation and respond accordingly.

[Yoon Jae-woong, Head of Marketing Strategy at SK Telecom]

두 번째 질문에 대한 답변 드리겠습니다. 금번 사고와 관련해서 과기정통부의 행정 지도에 따라서 당사는 5월 5일부터 신규 가입자 모집을 일시적으로 중단하고 있습니다.

[Translator]

Moving on to your second question, against the backdrop of the recent cybersecurity incident, in accordance with the administrative guidance by the Ministry of Science and ICT, we have suspended new subscriber signups from May 5.

[Yoon Jae-woong, Head of Marketing Strategy at SK Telecom]

of USIM supply, the USIM Protection Service has reached 100% subscription and, starting today, has been upgraded to be available for roaming customers as well. With the stabilization of USIM supply since mid-May, the introduction of USIM reset, and the simplification of the eSIM replacement process, we expect that replacement demand will be handled smoothly. Accordingly, we plan to discuss with relevant government ministries about resuming new subscriber recruitment.

[Translator]

As of now, it has not been decided whether and when we will be able to resume new signups. However, the recent suspension was made to secure enough supply of USIMs for affected customers. We have already 100% of eligible customers enrolled in the USIM Protection Service. The USIM Protection Service has been upgraded to provide protection for roaming customers. Starting from mid-May, we believe that we will be able to get a stable supply of USIM. We have introduced a USIM reset function and have simplified the process for eSIM replacement. We will be able to handle the demand for USIM and eSIM replacement going forward smoothly. We will discuss when we will resume the new signup together with the relevant government ministries on this matter.

[Yoon Jae-woong, Head of Marketing Strategy at SK Telecom]

this suspension of new subscriptions lasts, so we will do our best to stabilize the market as quickly as possible. When new subscriptions resume, we will inform investors through a voluntary disclosure.

[Translator]

Upon your question on potential impact of this decision on our revenue, it will very much depend on for how long we will have to suspend new subscriber signups. We are doing our best to stabilize the market as quickly as possible. We will voluntarily disclose to the investors and to the market when we finally decide to resume new signups.

[Yang-Seob Kim, CFO at SK Telecom]

다음 질문 받겠습니다.

[Operator]

다음으로 질문해 주실 분은 Yuanta Securities의 Lee Seung-woong 님입니다.

[Operator]

The following question will be presented by Seung Woong Lee from Yuanta Securities. Please go ahead with your question.

[Seung Woong Lee, Equity Analyst at Yuanta Securities Korea Co Ltd]

네, 안녕하세요. 유안타 증권 이승웅입니다. 앞선 질문의 연장선일 수도 있는데 이번 사고로 인해서 전반적인 재무 역량에 대해서 좀 궁금한데요. 일단 미약정적인 부분들이 좀 많아서 구체적으로 답변이 힘들 수도 있겠지만 저희 투자자들 입장에서 어떠한 것들을 고려하고 염두를 해야 될지 감을 잡을 수 있게 답변 좀 부탁드리고요. 또 하나는 아무래도 1분기 배당이 전년과 같은 수준을 유지를 하셨는데 이 부분이 향후 주주 환원에 영향을 미칠 수 있는지 이 부분에 대해서도 답변 부탁드리겠습니다. 감사합니다.

[Translator]

I am Lee Seung-woong from Yuanta Securities. I'd like to ask some questions that are rather follow-up questions to the previous questions. In short, I'd like to understand the overall financial impact of the recent cybersecurity incident on your earnings performance. I know that a lot of the factors have not been finalized, so there's a lot of uncertainty, but if you can guide us and provide us with some color on what factors and what situations and what factors that we need to consider as investors to understand potential financial impact. Moving on to your first quarter dividend amount, you decided to maintain it to the same level as the previous quarter. I'd like to understand if the recent incident will have any impact on your shareholder return policy. Thank you.

[Yang-Seob Kim, CFO at SK Telecom]

네, 질문 감사합니다. 먼저 질문 주신 사이버 침해 사고로 인한 재무 영향에 대해 말씀드리겠습니다.

[Translator]

Thank you for your questions. I would first like to address your question on the overall financial impact of the recent incident on our performance.

[Yang-Seob Kim, CFO at SK Telecom]

difficult to quantify specifically. However, I will first talk about the items and circumstances that we are keeping open as possibilities, and as things become more concrete depending on market conditions or the progress of the investigation, I will explain those details further at a later time.

[Translator]

I understand that the investors would like to very much know the potential impact, financial impact of the recent cybersecurity incident on our earnings performance, but at this point in time we do not really have any specific details to share with you. What I can do is to cover some of the related areas and potential measures that may have some financial impact, and then I will be able to provide you with more details as progress is made regarding the investigations and also market situations.

[Yang-Seob Kim, CFO at SK Telecom]

먼저 유심 교체 비용은 24 million 명의 저희 모든 고객이 유심을 교체할 수 있다는 가정 하에 유심 물량 입고 스케줄을 최대한 어쨌든 앞당기고 있고요. 이와 연계해서 저희 재무 계획을 지금 현재 세우고 있습니다.

[Translator]

First of all, as for USIM replacement, we are working based on the assumption that all 24 million customers may want to get their USIM replaced. We are accelerating the shipments of USIMs as much as possible, and we are also developing financial plans accordingly.

[Yang-Seob Kim, CFO at SK Telecom]

매출 쪽에서는 번호 이동이나 신규 모집 중단에 따른 부정적 영향이 있을 수 있는데 그 임팩트 수준은 향후 번호 이동의 추이와 신규 모집 재개 시점 등에 따라 굉장히 가변적입니다. 현재 구체적인 숫자를 말씀드리기는 좀 어려움을 좀 이해해 주시기 바랍니다.

[Translator]

Regarding any potential negative impact on our revenue, this may be expected due to some mobile carrier change or suspension of new subscriber signups, but the size of such impact is dependent on future telco switch trends and when we will be able to resume new subscriber signups. Please understand that we will not be able to offer any specific numbers at this point.

[Yang-Seob Kim, CFO at SK Telecom]

그리고 과징금 같은 잠재적 비용도 생각해 볼 수 있는데 이 역시 현재 진행 중인 과기부 민관 합동 조사단과 계보위의 조사 결과 등에 따라 비용 발생 여부가 결정되고 그 규모도 유동적입니다.

[Translator]

Also, additional potential costs such as administrative penalties may be considered, but whether such costs would be incurred is again dependent on so many factors, including the results of the ongoing joint investigation led by the Ministry of Science and ICT and the investigation by the Personal Information Protection Commission, and potential amounts are also difficult to estimate at this point in time.

[Yang-Seob Kim, CFO at SK Telecom]

금번 사고로 인해 재무 실적에는 일정 부분 네거티브한 영향이 불가피하겠지만 고객 보호를 위해 필요한 리소스를 적시에 적극 투입해서 시장을 조속히 안정시키고 고객 신뢰를 최대한 빨리 회복하는 것이 좀 더 긴 안목으로 볼 때에는 오히려 추가적인 손실을 최소화하고 기업 가치를 회복할 수 있는 길이라고 생각합니다.

[Translator]

Negative financial impact due to the recent cybersecurity incident may be inevitable. However, we believe that it is crucial for us to put in all the available resources as quickly as possible to stabilize the market and regain trust from our customers. This will be the best way in the long run to minimize any potential losses and recover our corporate value.

[Yang-Seob Kim, CFO at SK Telecom]

이어서 주주 환원에 대해 답변 드리겠습니다.

[Translator]

Moving on to your question on potential change to our shareholder return policy.

[Yang-Seob Kim, CFO at SK Telecom]

금번 해킹 사고로 주주 환원 정책에 변화가 있을지 여부에 대해서 아마 시장에서 가장 많이 궁금해하고 계실 것으로 예상하고 있습니다.

[Translator]

We understand that market participants would like to know whether there will be any change to our shareholder return policy due to the recent incident.

[Yang-Seob Kim, CFO at SK Telecom]

사고 관련해서 일정 수준의 재무적인 임팩트가 불가피할 것으로 생각은 하고 있지만 아직 그 규모를 특정할 수 없는 부분이 많습니다. 현재로서는 그래서 안정적 배당을 유지한다는 기본 원칙에 변함이 없다고 말씀드릴 수 있습니다.

[Translator]

Certain levels of financial impact would be inevitable related to the recent incident, but it is rather too early to estimate any potential financial impact with any certainty. What I can say is that our basic principle of maintaining stable dividends for shareholder returns remains the same.

[Yang-Seob Kim, CFO at SK Telecom]

네, 그만 지금 질문 대기 중이신 분이 계시면 질문 한 분만 더 받도록 하겠습니다.

[Operator]

다음으로 질문해 주실 분은 미래에셋증권의 김수진 님입니다.

[Operator]

The following question will be presented by Soojung Kim from Mirae Asset Securities. Please go ahead with your question.

[Soojung Kim, Senior Manager at Mirae Asset Venture Investment]

네, 안녕하세요. 질문 기회 주셔서 감사합니다. 해킹 관련해서는 앞에서 말씀 주셔서 저는 사업적인 내용 좀 질문 드리고 싶은데요. DC 사업 관련해서 이번 분기 AI DC 사업이 전년 대비 두 자릿수 성장했는데 향후 AI DC 확대 계획이 어떤지 궁금하고 AI DC 수익성에 대해서도 컬러를 좀 주실 수 있는 선에서 말씀 부탁드리겠습니다.

[Translator]

Thank you for the opportunity to ask questions. Because questions were already asked regarding the recent cybersecurity incident, I'd like to ask a question on your business situations and plans. For your AI DC business, it recorded a double-digit growth rate on a year-over-year basis, so I'd like to understand your future AI DC operation and expansion plans, and if you can give us some color on the profitability of AI DC business, it would be great. Thank you.

[Yang-Seob Kim, CFO at SK Telecom]

for the question. The Head of AI DC development will answer your question.

[Translator]

Thank you for your questions. As for your questions, Mr. Lee Hyun-woo, Head of AI DC Development, will address them.

[Lee Hyun Woo, Vice President of AI Data Center Development Office at SK Telecom]

Yangju data center that opened in February this year, we have eight data centers. We are operating eight centers, and additionally, we are developing more by collaborating with global big tech companies to establish a hyperscale AI-dedicated data center, targeting operation in 2027. When the plans become more concrete, we will be able to communicate more detailed information. Separately from this, we are also planning to build a new data center in the Seoul metropolitan area, and our pipeline is set through 2030, so we aim to steadily increase our data center operating capacity over time. Along with the capacity I mentioned, we, for the AI data center—sorry.

[Translator]

I am Yeon-woo, Head of AI DC development. As for your question on our medium to long-term AI DC or DC business expansion plan, as of now, we are operating eight data centers, including the Yangju data center, which recently opened in February. Furthermore, we are working on a project to build a hyperscale AI data center in regional headquarters or in regional hubs in close cooperation with the global big tech, and our target is to open hyperscale AI data centers by 2027. When we have more detailed plans, we will communicate them with the market. In addition, we already have put in place plans to establish new data centers in the Seoul metropolitan area, so we have a pipeline until 2030 for capacity expansion, and we will continue to increase our data center operational capacity gradually.

[Lee Hyun Woo, Vice President of AI Data Center Development Office at SK Telecom]

예, 또한 그 AI 시대가 본격적으로 열림에 따라서 데이터 센터 비즈니스가 전통적인 콜로케이션 중심의 데이터 센터에서 완전한 AI 데이터 센터로 진화하고 있고 이를 중심으로 한 새로운 수요들이 발생할 것으로 전망하기 때문에 이러한 AI 데이터 센터 수요에 대응할 수 있는 관련된 비즈니스 모델들을 조기에 마련하고 있습니다.

[Translator]

Furthermore, with the full-fledged opening of the AI era, we understand that the existing colocation-based data center business model is quickly switching to a new AI data center business model, and we expect the new types of demand in the market will continue to emerge. We are working to proactively establish our new data center business models to respond to these demands.

[Lee Hyun Woo, Vice President of AI Data Center Development Office at SK Telecom]

먼저 지난 연말에 고성능 GPU가 설치된 AI 데이터 센터를 이용할 수 있도록 하는 구독형 GPU as a Service를 론칭하였고 앞서 말씀드린 글로벌 빅테크와의 협력을 기반으로 국내 최초의 하이퍼스케일급 AI 데이터 센터 구축을 추진 중입니다.

[Translator]

To give you more details, we already launched the subscription-based GPU as a Service at the end of last year so that customers can quickly get access to AI data centers with high-performance GPUs. As I mentioned earlier, we are cooperating with a global big tech company so that we can establish Korea's first hyperscale AI data center.

[Lee Hyun Woo, Vice President of AI Data Center Development Office at SK Telecom]

이외에도 저용량 AI 데이터 센터의 신속한 확보를 요구하는 수요자들이 있기 때문에 이들을 위한 모듈러 AI 데이터 센터나 자체 AI 데이터 센터를 보유하고자 하는 고객들이 또한 있기 때문에 이 고객들을 위한 맞춤형 턴키로 제공을 하는 데디케이티드 AI 센터 등을 그런 BM들을 마련을 하고 있습니다.

[Translator]

In addition, we are building and developing new business models, including a modular AI data center business model where those who need quick access to low-capacity AI data center can utilize, as well as the dedicated AI data center business model where customers who want to possess their own AI data centers can receive tailored turnkey projects.

[Lee Hyun Woo, Vice President of AI Data Center Development Office at SK Telecom]

예, 정리를 드리면 빠르게 변화하는 시장의 니즈를 충족하는 AI 데이터 센터를 적기에 공급해 나가면서 우리 회사 AI 사업의 기반이 되는 AI 인프라 영역을 견고하게 구축해 나갈 예정입니다.

[Translator]

In summary, we will continue to supply AI data centers in order to meet changing needs in the market while establishing the AI infrastructure domain as a foundational business for SK Telecom.

[Lee Hyun Woo, Vice President of AI Data Center Development Office at SK Telecom]

두 번째 질문에 대해서 답을 드리겠습니다. 데이터 센터 사업의 수익성에 대해서 말씀을 주셨는데 에비타 마진의 관점에서 설명을 드리면 우선 우리 회사 데이터 센터 사업은 SK Broadband의 기업 사업 영역으로 분류를 하고 있습니다. 이 때문에 간접비 배분 등을 고려해야 되는 데이터 센터 사업만의 EBITDA 수준을 구분해서 밝히기는 어려운 점이 있지만 SK Broadband의 연결 EBITDA 마진을 상회하는 수준에서 데이터 센터 사업의 마진이 나온다고 생각하시면 되겠습니다.

[Translator]

Moving on to your second question on the profitability of our data center business in terms of EBITDA margin, I would first like to mention that our data center business is classified as B2B business for SK Broadband, and for this reason, it's difficult to separate and calculate EBITDA margin for data center business only in consideration of allocation of indirect costs and expenses. However, what I can say is that AI or data center business EBITDA margin is slightly higher than the consolidated EBITDA margin of SK Broadband.

[Yang-Seob Kim, CFO at SK Telecom]

have any questions that were not sufficiently answered today or if you have additional inquiries, please contact the IR team. Thank you.

[Translator]

Thank you. Now we would like to conclude the earnings conference call for SK Telecom. If you have any additional questions, please contact the IR team. Thank you.

Participants

Executives

• Hee Jun Chung, Vice President of Investor Relations
• Yang-Seob Kim, CFO
• Yoon Jae-woong, Head of Marketing Strategy
• Lee Hyun Woo, Vice President of AI Data Center Development Office

Analysts

• Translator
• Jongseok Kim, Team Head at KB Kookmin Bank
• Seung Woong Lee, Equity Analyst at Yuanta Securities Korea Co Ltd
• Soojung Kim, Senior Manager at Mirae Asset Venture Investment