SK Telecom (017670) Q4 2024 earnings summary

Executive summary

• Consolidated revenue reached KRW 17.94 trillion, up 1.9% year-over-year, with operating profit up 4% and net income rising 25.6% to KRW 1.44 trillion, driven by operational improvements, AI expansion, and valuation gains.

• AI-related revenue grew 19% year-over-year, with the A. user base surpassing 8 million and strong growth in both B2B and B2C AI segments.

• Strategic focus on AI monetization, including the launch of SKT GPUaaS, expansion of AI infrastructure, and global partnerships with Lambda, Penguin Solutions, Anthropic, and Perplexity.

• Dividend per share for 2024 set at KRW 3,540–3,541, with a total payout of KRW 753.6bn, maintaining stability amid ongoing AI and infrastructure investments.

• 2025 revenue guidance is KRW 17.8 trillion, with further operating profit growth and global AI service launches planned.

Financial highlights

• Consolidated revenue: KRW 17.94 trillion, up 1.9% year-over-year; operating income: KRW 1.82 trillion; net income: KRW 1.44 trillion, up 25.6%.

• AI-related revenue grew 19% year-over-year; AIX business revenue: KRW 193 billion in 2024, targeting 30% growth in 2025.

• SK Broadband revenue increased 3.1% to KRW 4.41 trillion, with operating income up 13.7% year-over-year.

• 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.

Outlook and guidance

• 2025 consolidated revenue target: KRW 17.8 trillion, with further operating profit growth expected.

• Continued focus on operational improvements, AI business expansion, and global AI service launches, including U.S. beta of Aster in 1H 2025.

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

• Ongoing investments in AI infrastructure and SK Broadband equity acquisition.

• Plans to accelerate AI Infrastructure Superhighway through global partnerships and continued investment in AI data centers and GPUaaS.