SK Telecom (017670) Q2 2026 earnings summary

Executive summary

• Consolidated revenue for Q2 2026 reached KRW 4,359.1 billion, up 0.5% year-over-year, with operating income of KRW 566 billion, up 67.3% year-over-year, and net income of KRW 466 billion, driven by strong AI data center growth and improved profitability.

• AI data center revenue soared 92.5% year-over-year in Q2, with SK Hyper established to accelerate business development and market leadership.

• Dividend per share for Q2 2026 was KRW 830, with a policy to return over 50% of adjusted net profit to shareholders for FY2024–2026.

• Completed the full acquisition of SK Broadband in May 2026, enhancing operational efficiency and business synergies.

• Maintained a solid capital structure, with a debt-to-equity ratio of 1.09 at the end of June 2026.

Financial highlights

• Consolidated revenue for H1 2026 was KRW 8.75 trillion, with Q2 revenue at KRW 4,359.1 billion, and operating income for H1 at KRW 1.10 trillion.

• Net income attributable to owners was KRW 793.0 billion for H1 2026, more than 1.7x higher than H1 2025.

• EBITDA for Q2 2026 was KRW 1,442.3 billion, with a margin of 33.1%.

• CapEx for Q2 2026 was KRW 487 billion, down 23.3% year-over-year but up 256.7% sequentially.

• Cash flows from operating activities were KRW 2.27 trillion, with cash and equivalents at KRW 1.20 trillion at period end.

Outlook and guidance

• Continued phased expansion of AI data center capacity is planned, with SK Hyper targeting 5 GW by 2029 and ongoing negotiations with global tech companies.

• Management targets growth in wireless and AI-driven services, with ongoing investment in 5G and AI data centers.

• Submarine cable infrastructure expansion is ongoing, supporting future AI and cloud growth.

• Commitment to balancing growth investment with stable shareholder returns and financial soundness.