SK Telecom Co.,Ltd

SK Telecom reported consolidated revenue of KRW 4.39 trillion, up 1.5% quarter on quarter, and consolidated operating income of KRW 537.6 billion. Management said the company posted earnings similar to levels prior to the cybersecurity incident, with operating profit reversing the prior downward trend. In the first quarter, handset subscribers recorded about 210,000 net adds, and the company said AI data center revenue was growing year over year; one question referenced AI DC revenue up 89% year over year. For capital return, the company resumed quarterly dividends with Q1 DPS of KRW 830. Looking ahead, management said it aims to improve full-year earnings further from current levels, recover annual earnings to above pre-incident levels, and keep dividends as stable as possible, while final full-year dividend sizing will depend on results and Board discussion.

The lead executive, CFO Jong-seok Park, framed Q1 as an early sign that the company’s 2026 plan is working: restoring customer trust, improving telecom fundamentals, and sharpening the AI portfolio. He said the telecom business is returning to normal, the AI business is being restructured through a focus-and-prioritization strategy, and the company will pursue AI data centers, AI B2B, and agent-related opportunities with full-stack AI capabilities. His tone was constructive and focused on execution rather than celebratory, with repeated emphasis that the company is still in recovery and must keep improving.

Park highlighted the key numbers: KRW 4.39 trillion in consolidated revenue, KRW 537.6 billion in operating income, and Q1 DPS of KRW 830. He said Q1 operating profit exceeded KRW 500 billion thanks to efforts to regain customer trust and company-wide productivity improvements, and he pointed to enterprise-wide AI tool adoption and call-center AX transformation as helping cost efficiency. On capital allocation, he noted the March transfer of KRW 1.7 trillion of capital reserves to retained earnings to support tax-exempt dividends, with tax-exempt dividends possible from 2026 year-end dividends under relevant law.

Analysts focused on three issues: the full-year shareholder return plan, whether the recovery in earnings should be considered the new normal, and how much AI data centers can contribute to profitability. Management said it cannot give a specific full-year dividend amount yet, but plans to pay dividends as stably as possible and aims to restore dividend levels over time. On AI data centers, management would not disclose profitability metrics, but said the business is comparable to telecom in profitability and has room to improve further. On MNO, management said it will avoid excessive spending competition, target high-LTV subscribers, and grow share naturally through better products, services, and sales channels.