SK Telecom (NYSE: SKM) today announced its earnings for the first quarter of 2025 based on a Korean International Financial Reporting Standards (K-IFRS) consolidated basis: revenue of KRW 4.4537 trillion, operating income of KRW 567.4 billion, and net income of KRW 361.6 billion. The company experienced solid revenue growth in its artificial intelligence (AI) businesses, such as AI data centers (AIDC) and AI transformation (AIX), as well as in its fixed line business. However, the sales of some subsidiaries in 2024 resulted in a slight revenue decrease of 0.5% compared to the same period in the previous year.

Operating income increased by 13.8%, driven by the growth in AI businesses centered on AIDC and AIX. Net income experienced a slight decrease of 0.1% year over year (YoY).

■ Continued Growth in AI Business and Increased Subscriber Numbers in Telecommunications

In the first quarter, SK Telecom’s AIDC business recorded revenue of KRW 102.0 billion, marking an 11.1% YoY increase, driven by increased data center capacity and utilization rates. Positioned as a high-growth business generating over KRW 100 billion per quarter, AIDC is set to accelerate its push into hyperscale AIDC in the mid to long term.

The AIX business also continued its growth trajectory, generating KRW 45.2 billion in revenue, up 27.2% from the same period last year. While AI cloud revenue continues to rise, the B2B segment has also contributed to the company’s growth through expanded AI marketing contracts. SK Telecom plans to officially launch ‘A. Biz’ (A-DoT Biz), its enterprise-focused AI assistant, as early as the first half of this year following beta testing.

In the AI services domain, the cumulative user base of the ‘A.’ (A-DoT) service surpassed 9 million. Meanwhile, ‘Aster’ (A*), SK Telecom’s global AI agent service, launched open beta testing in the U.S. at the end of March. The service is being continuously refined based on user feedback, with an official release scheduled for the second half of this year.

The company’s telecommunications business also saw a steady rise in the number of subscribers, particularly for 5G and high-speed internet services.

The dividend for the first quarter has been set at KRW 830 per share, with the record date scheduled for May 31. In March, SK Telecom revised its articles of incorporation to improve dividend predictability by determining the dividend amount in advance and then setting the record date.

■ Strengthening Customer Protection to Prioritize Trust After Cybersecurity Incident

In response to the recent cybersecurity incident, SK Telecom has elevated its Fraud Detection System (FDS) — which blocks abnormal authentication attempts — to its highest operational level. The company also completed automatic enrollment in its SIM card protection service for all eligible customers.

Additionally, the company began offering free SIM card replacements to interested customers, with 1.47 million having completed the process as of May 11.

SK Telecom is introducing a new ‘SIM Reset’ solution on May 12, which blocks SIM cloning by modifying certain information on the existing SIM without the need to physically replace it. Also, the SIM card protection service has been upgraded to ensure the protection of customer information even while using overseas roaming.

The newly introduced SIM Reset works by changing part of the user information stored on the SIM, such as user authentication and user-saved information, while keeping the user-stored data intact. Moreover, various network functions will be provided simultaneously to offer the same protective effect as replacing the SIM card.

Notably, SIM Reset can retain the user’s stored information on the SIM card. Therefore, unlike replacing the SIM card, there is no need to reset financial certificates, T-money, contacts and more. It is also advantageous that there is no need for new authentication with financial institutions, enabling convenient and quick processing. SIM Reset is available for both SIM and eSIM users.

To expedite the replacement process, SK Telecom has temporarily suspended all new subscriber recruitment and number porting services at over 2,600 T World stores nationwide, focusing exclusively on SIM replacement services.

SK Telecom is committed to restoring customer trust by establishing a ‘Customer Trust Restoration Committee,’ which will involve external experts and customers. Additionally, the company will continue to develop security systems and measures to strengthen customer protection.

“We are taking this incident to thoroughly reassess all aspects of our business and operations to enhance our fundamental competitiveness,” said Kim Yang-seob, CFO of SK Telecom. “SK Telecom will focus all of its capabilities on safeguarding our customers and maintaining the trust that our customers have placed in us over the past 40 years.”

※ Attachment 1. Summary of Consolidated Income Statement (Unit: KRW billion)

※ Attachment 2. Summary of Non-Consolidated Income Statement (Unit: KRW billion)