SK Telecom (017670) Q3 2024 earnings summary

Executive summary

• Consolidated Q3 2024 revenue reached KRW 4.5321 trillion, up 2.9% year-over-year, driven by B2B, AI, and stable fixed/mobile growth.

• Operating income was KRW 533.3 billion, up 7.1% year-over-year, reflecting cost stabilization and improved business fundamentals.

• Net income stood at KRW 280.2 billion, down 9.1% year-over-year due to valuation losses on investment assets.

• Focused on transforming into a global AI company through the AI Pyramid Strategy, emphasizing AI data centers, B2B, and B2C monetization avenues.

• Announced a Corporate Value-up Plan with ambitious 2030 targets: KRW 30 trillion in revenue and 35% from AI.

Financial highlights

• Non-consolidated revenue grew 1.7% year-over-year to KRW 3.2 trillion, with B2B and Cloud as key drivers.

• Non-consolidated operating income jumped 12.3% year-over-year to KRW 457 billion.

• SK Broadband revenue rose 3.3% year-over-year to KRW 1.1 trillion, with operating income up 5.6% to KRW 88 billion.

• Enterprise revenue reached KRW 427.5 billion, up 8% year-over-year; Data Center revenue up 14% and Cloud revenue up 30%.

• Q3 dividend per share (DPS) set at KRW 830–831.

Outlook and guidance

• Committed to maximizing both corporate and shareholder value, with a stable dividend policy using over 50% of adjusted consolidated net income.

• 2030 vision targets significant AI-driven growth, aiming for AI to match the scale of the current telecom business.

• Plans to accelerate transition to a global AI company by focusing on AI data centers, enterprise, and consumer AI services.

• Nationwide AI infrastructure strategy includes launching GPUaaS and expanding edge AI technology.

• Targeting ROE of 10%+ by 2026.