SK Telecom recorded a internet lack of KRW167 billion in Q3, in contrast with a revenue of KRW280 billion a yr earlier
In sum – what to know:
Regular development – SK Telecom reached 17.3 million 5G customers, accounting for practically 80% of its handset base.
Information breach drives losses – A KRW500 billion compensation bundle led to a pointy Q3 revenue drop and internet loss.
Restoration anticipated in This autumn – The telco expects decrease income impression within the ultimate quarter as compensation results taper.
SK Telecom, South Korea’s largest telecom operator, ended the third quarter of the yr with a complete of 17.3 million subscribers within the 5G section, up 4.1% from 16.57 million in the identical quarter the earlier yr, the telco mentioned in its earnings assertion.
On the finish of September, SK Telecom’s 5G subscribers accounted for 79% of its total handset subscribers, up from 73% on the finish of Q3 2024.
The variety of LTE subscriber reached 4.93 million on the finish of the third quarter, down 21.3% year-on-year. The Korean service ended Q3 with a complete of 33.54 million cellular subscribers, down 2.1% year-on-year.
SK Telecom additionally reported a complete of seven.19 subscribers within the broadband section on the finish of the interval, up 1.2% year-on-year.
SK Telecom reported its working revenue decline 90.9% year-on-year to KRW48 billion ($33.6 million) within the third quarter, with revenues down 12.2% to KRW3.97 trillion.
The operator recorded a internet lack of KRW167 billion within the interval, in contrast with a revenue of KRW280 billion a yr earlier. The telco’s capex in Q3 reached KRW457 billion, down 0.9% year-on-year.
The telco paid out KRW500 billion in compensation following a knowledge breach impacting all prospects within the cellular section. The compensation program included a 50% reduce in cellular tariffs in August, further knowledge and reductions on accomplice content material with the purpose of enhancing buyer satisfaction and rebuild belief.
In its earnings name, SK Telecom’s CFO Kim Yang-seob said the shopper profit bundle will proceed till the tip of the yr, noting decline in cellular income “ought to persist in This autumn, however the impression ought to be considerably smaller than in Q3.”
The chief additionally highlighted that the final six months have been “essentially the most difficult interval for SK Telecom since its founding and all the group has been totally mobilized to answer the cybersecurity incident.”
SK Telecom has not too long ago launched an unbiased company-in-company (CIC) unit devoted to synthetic intelligence, consolidating its AI belongings underneath a single construction to speed up innovation and execution, based on Korean press experiences.
The experiences additionally highlighted that the Korean operator has dedicated KRW5 trillion to AI over the subsequent 5 years, with the purpose of producing at the very least the identical quantity in annual revenues from AI companies by 2030.