SK Telecom Q2 Earnings Call Highlights

Key Points

• Strong Q2 profitability: SK Telecom reported revenue of KRW 4.36 trillion, up 0.5% year over year, while operating income jumped 67.3% to KRW 566 billion, helped by cost controls and the absence of prior-year cybersecurity incident expenses.
• AI data-center expansion: The company established SK Hyper with a KRW 750 billion commitment to secure sites, power and resources for large-scale AI data centers. AIDC revenue rose 92.5%, and SK Telecom is targeting phased expansion toward 5 gigawatts, supported by external funding and strategic partners.
• Mobile recovery and shareholder returns: SK Telecom said its mobile business was stabilizing through retention efforts and higher-quality subscriber additions, while setting its quarterly dividend at KRW 830 per share and reaffirming its commitment to stable shareholder returns.

SK Telecom NYSE: SKM reported second-quarter 2026 consolidated revenue of KRW 4.36 trillion, up 0.5% from a year earlier, as continued data-center growth supported its top line. Consolidated operating income rose 67.3% year over year to KRW 566 billion, reflecting a comparison against cybersecurity incident-related expenses recorded in the second quarter of 2025, along with cost controls and profitability-focused management.

Chief Financial Officer Park Jong-seok said the company’s mobile business was showing a “clear recovery” as SK Telecom focused on customer value and profitability. At the same time, the company said its AI operations were moving from strategy development into execution and expansion, led by investments in AI data-center infrastructure, or AIDC.

SK Telecom set its second-quarter dividend per share at KRW 830. Park said the company intends to maintain stable shareholder returns while balancing growth investments, financial soundness and dividends.

Mobile Business Focuses on Retention and Higher-Quality Adds

Park said the mobile market had stabilized compared with the prior quarter, and SK Telecom continued to post net additions of handset subscribers by targeting higher-quality customer segments and using differentiated marketing campaigns.

In July, the company introduced new mobile plans that integrate its 5G and LTE pricing structures and simplify its overall offerings. SK Telecom said the changes are intended to improve customer experience and service accessibility, supporting customer retention.

The company did not provide subscriber totals, average revenue per user figures or further mobile-service financial details during the call.

SK Hyper Formed to Pursue AI Data-Center Development

SK Telecom announced the establishment of SK Hyper, a dedicated subsidiary for AIDC business development. The company said the new unit will secure land, sites, power and water resources, attract global customers and lead project development for large-scale AI data centers.

Park said securing land and power is an essential prerequisite for the AIDC business. He said SK Hyper was designed to obtain those assets preemptively while creating a more flexible business structure that can actively use external funding.

SK Telecom has committed KRW 750 billion to SK Hyper, including KRW 330 billion planned for investment this year. The funds will initially be used for such activities as securing sites, including in Ulsan, and building substations needed for gigawatt-scale data-center operations. The remaining commitment is expected to be injected in installments beginning next year.

SK Hyper is separate from SK Broadband’s existing data-center business, according to Park. The company said it will use SK Telecom’s relationships with global technology customers and SK Broadband’s data-center construction and operational experience to pursue group synergies.

• AIDC revenue increased 92.5% year over year in the second quarter, primarily due to the Pangyo Data Center.
• Construction of a new Seoul data center began in May.
• SK Telecom plans to pursue phased expansion toward 5 gigawatts of capacity, depending on customer demand.

Management Sees Structural Demand for AI Infrastructure

Lee Jae-shin, vice president and head of Global Business Development, said SK Telecom views demand for AI infrastructure as a structural rather than temporary trend. He cited rising demand for inference computing power and broader AI adoption by the public sector and industries.

Lee said global technology companies are increasing related investments, while sites with the power, connectivity and water supply required to operate AI data centers remain limited. He said Korea has competitive advantages in serving global technology companies’ AI infrastructure requirements.

“Currently, discussions with global tech companies are underway with respect to AI infrastructure demand,” Lee said, adding that SK Telecom plans to respond flexibly to customer needs through phased capacity expansion.

Park said the total investment required for the company’s 5-gigawatt goal has not been determined because discussions with potential customers remain ongoing and depend on demand, business models and project schedules. He said SK Telecom expects to use financial investors, strategic partners, project financing and other funding mechanisms for construction and operations.

External Funding Intended to Support Dividends and Financial Discipline

Management acknowledged that gigawatt-scale AIDC projects require substantial capital. Park said SK Telecom does not expect to finance the entire construction and operation of planned capacity itself, and instead intends to lead projects while minimizing direct investment relative to traditional data-center development approaches.

Park said the KRW 330 billion planned for this year is manageable given the company’s free cash flow. He added that direct investments would be made with consideration for financial soundness and stable dividend payments.

Separately, Choi Dong-hee, vice president and head of the AI Strategy & Planning Office, said SK Telecom has decided to make a capital contribution to an AI company associated with SK Hynix. Choi said the investment is intended to strengthen SK Telecom’s AIDC competitiveness through access to innovative AI companies, global relationships and AI infrastructure value-chain capabilities. The capital contribution will be paid in installments upon request to limit the impact on earnings, he said.

SK Telecom said it aims to evolve from Korea’s largest telecommunications operator into what it described as Korea’s leading AI infrastructure company, while continuing to rely on stable telecom income to support its expansion.

About SK Telecom (NYSE:SKM)

SK Telecom Co, Ltd. NYSE: SKM is South Korea's largest wireless carrier, offering a comprehensive range of mobile telecommunications services. The company operates 5G, 4G LTE and IoT networks, providing voice, data and messaging solutions to consumers and businesses. Beyond traditional wireless services, SK Telecom delivers fixed-line broadband, digital content platforms, cloud computing and cybersecurity offerings designed to support enterprise digital transformation and the growing demand for high-speed connectivity.

Established in 1984 as Korea Mobile Telecommunications Services, SK Telecom pioneered cellular service commercialization in South Korea and has continually expanded into new technology areas.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source