Q2 2024 SK Telecom Co Ltd Earnings Call Transcript
Key Points
- SK Telecom Co Ltd (SKM) reported a 2.7% year-over-year increase in consolidated revenue, reaching KRW4.4224 trillion.
- Operating income rose by 16% year-over-year to KRW537.5 billion, driven by cost stabilization and one-off profits.
- The AI infrastructure domain saw a 20.5% year-over-year growth in data center revenue, fueled by AI-driven demand.
- The company has made significant investments in AI, including $200 million in SGH and $10 million in Perplexity, enhancing its AI capabilities.
- SK Telecom Co Ltd (SKM) achieved a 29% year-over-year revenue growth in its IoT business and a 28% growth in its cloud business.
- Despite strong financial performance, the company's high level of shareholder returns has not been adequately reflected in its corporate valuation in the stock market.
- The competitive landscape remains challenging, with increased number transfers due to regulatory changes and public interest in handset subsidies.
- The company faces significant investment requirements to continue its AI transformation and maintain its competitive edge.
- There is uncertainty regarding the impact of regulatory changes on the market size and profitability in the long term.
- The company needs to balance investments for growth, shareholder returns, and financial stability, which may limit immediate resource allocation flexibility.
Good afternoon. I am Hee Jun Chung, IRO of SK Telecom. Thank you for joining SK Telecom's earnings conference call. Today, we will first deliver a presentation on major events, 2024-Q2 earnings highlights and business performances, which will be followed by a Q&A session. The call is attended by our executives from relevant business divisions, including Yang Seob Kim, CFO of SK Telecom. And we're providing consecutive interpretation for the call.
As you may know, I would like to remind you that all forward-looking statements are subject to change depending on various factors such as market and macro situation.
Let me now present our CFO.
Good afternoon. This is Yang Seob Kim, CFO of SK Telecom. We are already in the second half of 2024, which marks the 40th anniversary of SK Telecom. Under the vision of becoming a global AI company, we have been mobilizing enterprise resources to implement the AI pyramid strategy. We have been especially
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