SK Telecom (NYSE:SKM) Posts Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• SK Telecom reported quarterly EPS of $0.75, beating estimates by $0.07, while revenue of $3.31 billion also exceeded expectations.
• Operating income topped KRW 500 billion for a third consecutive quarter, and mobile service revenue and ARPU improved. The company declared a KRW 830-per-share quarterly dividend and aims to maintain at least that level.
• AI data centers are a key growth priority, but expansion depends on securing customers and financing; initial capacity demand is targeted by the first half of 2027, with openings planned from late 2029.

SK Telecom (NYSE:SKM - Get Free Report) issued its quarterly earnings data on Wednesday. The Wireless communications provider reported $0.75 earnings per share for the quarter, beating analysts' consensus estimates of $0.68 by $0.07, Zacks reports. SK Telecom had a net margin of 4.23% and a return on equity of 5.30%. The business had revenue of $3.31 billion for the quarter, compared to analysts' expectations of $3.27 billion.

Here are the key takeaways from SK Telecom's conference call:

• SK Telecom reported continued earnings recovery, with operating income of KRW 552.3 billion for the quarter and more than KRW 500 billion for the third consecutive quarter; nine-month operating income reached KRW 1.656 trillion.
• The core mobile business showed improving momentum: mobile service revenue and ARPU rose quarter over quarter, which management attributed to attracting higher-value subscribers and expanding into new customer segments. The company expects gradual revenue recovery to continue in the fourth quarter.
• SK Telecom declared a quarterly dividend of KRW 830 per share and said it aims to maintain at least the current dividend level, supported by stable earnings and cash flow.
• AI data center expansion is a major growth priority, but projects remain dependent on securing customer demand and external financing. SK Hyper aims to secure demand for initial capacity by the first half of 2027, with phased openings targeted from the second half of 2029; management acknowledged that data center investment will increase capital needs.
• The next shareholder-return policy is still under review, with details expected before the first-quarter 2027 dividend decision. Management said any proceeds from a potential Anthropic stake sale would be allocated after weighing growth investment needs, market conditions, and shareholder value.

SK Telecom Trading Down 5.8%

Shares of SKM stock traded down $1.83 during mid-day trading on Thursday, reaching $29.46. The stock had a trading volume of 2,078,582 shares, compared to its average volume of 1,979,472. The company has a current ratio of 1.25, a quick ratio of 1.22 and a debt-to-equity ratio of 0.49. SK Telecom has a 52-week low of $19.66 and a 52-week high of $47.18. The firm has a market capitalization of $11.31 billion, a PE ratio of 23.57 and a beta of 0.78. The stock's 50-day moving average price is $34.89 and its two-hundred day moving average price is $33.87.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Weiss Ratings upgraded shares of SK Telecom from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, August 13th. JPMorgan Chase & Co. upgraded SK Telecom from a "neutral" rating to an "overweight" rating in a research note on Thursday, July 16th. Finally, Zacks Research upgraded shares of SK Telecom from a "strong sell" rating to a "hold" rating in a research report on Monday, October 12th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce".

About SK Telecom

SK Telecom Co, Ltd. is a South Korean telecommunications company that provides mobile communications and information technology services. The company offers wireless voice and data services, mobile connectivity, internet access, and related digital products to consumers and businesses.

Through its broadband and media operations, SK Telecom provides fixed-line internet, internet protocol television, and video and entertainment services. It also serves corporate and institutional customers with enterprise telecommunications, cloud, data center, cybersecurity, and other technology solutions.

SK Telecom is headquartered in South Korea and primarily serves the South Korean market, while also pursuing international opportunities through technology partnerships and investments.

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