SK Telecom (017670) Q4 2024 earnings summary

Executive summary

• Consolidated revenue reached KRW 17.94 trillion, up 1.9% year-over-year, with operating income of KRW 1.82 trillion and net income of KRW 1.44 trillion, up 25.6% year-over-year, driven by operational improvements, AI expansion, and business portfolio restructuring.

• Operating profit grew 4% year-over-year, with an operating margin exceeding 10%.

• AI-related revenue increased 19% year-over-year, with the A. (A dot) user base growing 160% to over 8 million.

• Strengthened global AI partnerships and launched new AI services, including GPUaaS, Aster, and expansion of AI infrastructure.

• 2024 annual dividend per share was KRW 3,540–3,541, with a total payout of KRW 753.6bn, subject to AGM approval.

Financial highlights

• Consolidated revenue: KRW 17.94 trillion, up 1.9% year-over-year; operating income: KRW 1.82 trillion, up 4.0%.

• Net income: KRW 1.44 trillion, up 25.6% year-over-year, including valuation gains from the Sapeon deal.

• EBITDA was KRW 5.52 trillion, up 0.3% year-over-year; EBITDA margin at 30.8%.

• CapEx totaled KRW 2.74 trillion, up 12.7% year-over-year.

• Non-consolidated revenue was KRW 12.77 trillion, up 1.5% year-over-year; net income up 25.7% to KRW 1.33 trillion.

Outlook and guidance

• 2025 consolidated revenue target: KRW 17.8 trillion, with operating income expected to grow year-over-year.

• AIX revenue expected to grow 30% in 2025; AIDC business anticipates double-digit growth.

• Focus on AI infrastructure expansion, global partnerships, and monetization, including new paid subscription models and U.S. launch of AI services.

• Ongoing focus on both short-term profitability and long-term sustainability via operational improvements.