SK Telecom Posts 7.1% Rise in Q3 Operating Profit, Driven by AI Initiatives

SEOUL, South Korea—SK Telecom (NYSE: SKM) reported on Wednesday that its third-quarter operating profit rose 7.1% year over year, boosted by improved operational efficiency through artificial intelligence adoption and growth in enterprise services.

Operating profit reached KRW 533.3 billion (US$384.1 million) while revenue grew 2.9% to KRW 4.53 trillion (US$3.26 billion). 

However, net income declined 9.1% to KRW 280.2 billion (US$201.8 million) due to valuation losses from equity investments.

Key Performance:

• Mobile subscribers reached 31.76 million, with 5G users accounting for 73% of total subscribers.
• Enterprise revenue grew 8% year-on-year, driven by data center and cloud services.
• Data center revenue increased 14% year-on-year to KRW 60.9 billion (US$43.9 million)
• Cloud revenue surged 30% to KRW 47 billion (US$33.8 million)

"Our focus is on driving growth in three profitable AI areas, including AI data center, AI B2B, and AI B2C businesses," said Kim Yang-seob, CFO of SK Telecom.

The company announced plans to transform its Gasan data center in Seoul into an AI-focused facility, scheduled to open in December. 

To improve GPU accessibility for domestic companies, it will offer GPU-as-a-Service (GPUaaS).

Targeting ROE of 10%+ by 2026 through operational improvements and AI initiatives

Aims to achieve total revenue of KRW 30 trillion by 2030, with AI accounting for 35%

Plans to establish nationwide AI infrastructure centered around regional AI data centers

The company declared a quarterly dividend of KRW 830 per share.

SK Telecom's 'A.' AI Personal Assistant service exceeded 5.5 million subscribers in September.

In October, the service was renamed 'A. Phone' and AI functions were integrated into the company's T-Phone service.

The results reflect SK Telecom's ongoing transformation from a traditional telecom operator to an AI-focused technology company amid growing demand for AI infrastructure and services in South Korea.

(US$1 = KRW 1,388.60)