SK Telecom Co Ltd
KRX:017670
SK Telecom Co Ltd
SK Telecom Co., Ltd. is a pioneering force in South Korea's telecommunications landscape, tracing its roots back to the early 1980s as the country's leading mobile service provider. The company doesn't simply connect people with mobile networks; it has consistently shaped the evolution of the telecommunications sector by heavily investing in cutting-edge technologies, such as 5G, AI, and IoT, thereby driving digital transformation across diverse industries. Operating in the competitive tech sphere, SK Telecom leverages its robust infrastructure to offer a variety of services including mobile voice, data communication, and a suite of value-added services like streaming media and fintech solutions. This diversification strategy helps the company mitigate risks and capitalize on a broader spectrum of revenue streams.
Diving deeper into its business model, SK Telecom generates revenue primarily through its extensive portfolio of mobile subscription plans, which cater to individuals and enterprises with tailored pricing and service options. In addition to traditional telecommunications services, the company has expanded into synergistic domains like AI-powered platforms, cloud services, and smart home solutions, which allow it to tap into the growing appetite for integrated and intelligent tech services. By maintaining a keen eye on innovation and customer-centric offerings, SK Telecom sustains its profitability while carving out a significant footprint in both domestic and international markets. This adaptability not only fortifies its competitive edge but also ensures its sustained growth in an ever-evolving industry.
SK Telecom Co., Ltd. is a pioneering force in South Korea's telecommunications landscape, tracing its roots back to the early 1980s as the country's leading mobile service provider. The company doesn't simply connect people with mobile networks; it has consistently shaped the evolution of the telecommunications sector by heavily investing in cutting-edge technologies, such as 5G, AI, and IoT, thereby driving digital transformation across diverse industries. Operating in the competitive tech sphere, SK Telecom leverages its robust infrastructure to offer a variety of services including mobile voice, data communication, and a suite of value-added services like streaming media and fintech solutions. This diversification strategy helps the company mitigate risks and capitalize on a broader spectrum of revenue streams.
Diving deeper into its business model, SK Telecom generates revenue primarily through its extensive portfolio of mobile subscription plans, which cater to individuals and enterprises with tailored pricing and service options. In addition to traditional telecommunications services, the company has expanded into synergistic domains like AI-powered platforms, cloud services, and smart home solutions, which allow it to tap into the growing appetite for integrated and intelligent tech services. By maintaining a keen eye on innovation and customer-centric offerings, SK Telecom sustains its profitability while carving out a significant footprint in both domestic and international markets. This adaptability not only fortifies its competitive edge but also ensures its sustained growth in an ever-evolving industry.
Revenue Decline: SK Telecom reported 2025 consolidated revenue of KRW 17.0992 trillion, down 4.7% year-over-year due to subsidiary sales, subscriber losses after a cybersecurity incident, and tariff discounts.
Sharp Profit Drop: Operating income fell 41.1% and net income declined 73% year-over-year, mainly due to the cybersecurity incident, related penalties, and restructuring costs.
Dividend Reduction: No quarterly dividend for Q4; full-year 2025 dividend per share set at KRW 1,660, with a goal to restore previous payout levels in 2026.
AI & Data Center Growth: AI and data center businesses continued to see double-digit revenue growth; further expansion in Seoul and Ulsan planned.
Customer Trust Focus: Management highlighted efforts to rebuild customer trust and recover competitiveness, with a focus on operational improvements and customer value.
2026 Outlook: Aim to restore profitability to pre-incident levels, balance cost and benefit in subscriber acquisition, and leverage AI for both telecom and enterprise productivity.
Strategic Priorities: New management is prioritizing customer value, AI-driven productivity, and sustainable AI business growth.
