SK Telecom (017670) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was KRW 4.4547 trillion, down 0.5% year over year, with AI and fixed line business growth offset by subsidiary sales.

• Operating income rose 13.8% year over year to KRW 567.4 billion, driven by business portfolio restructuring and lower marketing and depreciation costs.

• Net income was KRW 361.6 billion, nearly flat year over year, down 0.1%.

• The company responded to a major cybersecurity incident with immediate system isolation, enhanced fraud detection, and customer protection measures.

• Wireless business maintained a 45.3% market share, with 5G subscribers reaching 17.24 million (76% of total wireless users).

Financial highlights

• Consolidated revenue was KRW 4.4547 trillion, down 0.5% year over year; operating income was KRW 567.4 billion, up 13.8% year over year; net income was KRW 361.6 billion, down 0.1% year over year.

• Non-consolidated revenue was KRW 3.167 trillion, down 0.7% year over year; operating income was KRW 482 billion, up 10.5% year over year; net income was KRW 475 billion, down 3.6% year over year.

• SK Broadband revenue grew 2.0% year over year to KRW 1.1 trillion, with operating income up 23% and net income up 21.7%.

• Operating margin improved to 12.7% in Q1 2025 from 11.1% in Q1 2024.

• Consolidated EBITDA margin was 33.3% in Q1 2025, up from 31.9% a year earlier.

Outlook and guidance

• The company is focused on stabilizing the market and regaining customer trust following the cybersecurity incident.

• Plans to expand AI data center capacity through 2030, including a hyperscale AI data center by 2027, and to launch enterprise AI assistant 'A. Biz' in 1H 2025.

• Global AI agent service 'Aster' is in open beta in the U.S., with official release set for 2H 2025.

• Shareholder return policy remains stable, targeting at least 50% of adjusted net profit for 2024–2026.

• Ongoing investment in network expansion, AI, and data center infrastructure.