Core Insights - SK Telecom Co. (SKM) has invested $3 million in Twelve Labs to enhance multimodal AI applications, particularly in security, public safety, and customer interaction [1][3] - Twelve Labs specializes in multimodal video foundation models, enabling enterprises to utilize video archives for tasks like semantic search and content summarization [3] - The collaboration aims to leverage SK Telecom's telecommunications expertise and Twelve Labs' video understanding capabilities to advance multimodal AI technology [3] Investment and Growth Strategy - SK Telecom is focusing on becoming a global AI company by developing AI data centers, enterprise AI, and AI consumer services [8] - The company has seen a 2.9% year-over-year increase in consolidated revenues, reaching KRW 4.5321 trillion, driven by growth in roaming and the enterprise sector [7] - Operating income increased by 7.1% to KRW 533.3 billion, attributed to enhanced efficiency from AI integration and operational improvements [7] AI Initiatives - SK Telecom's AI Customer Service Support System beta service was successfully concluded in November 2024, marking a significant advancement in customer service technology [5] - The company collaborated with global LLM leaders to develop an advanced AI system tailored for telecom, refining their Telco LLM and large multimodal model (LMM) [6] - The AI system has shown strong performance since its launch in mid-October, indicating successful implementation of AI-driven innovations [6] Market Performance - SK Telecom currently holds a Zacks Rank of 4 (Sell), with its shares gaining 2.6% over the past year, contrasting with a 17.1% decline in the sub-industry [9]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was KRW 4,532.1 billion, an increase of 2.9% year-over-year, driven by stable growth in roaming and B2B solution businesses [8] - Operating income rose to KRW 533.3 billion, up 7.1% year-over-year, attributed to cost stabilization in marketing and depreciation [8] - Net income decreased to KRW 280.2 billion, reflecting a 9% year-over-year decline due to nonoperating losses [21][9] Business Line Data and Key Metrics Changes - Data center revenue grew by 14% year-over-year, benefiting from higher utilization [10] - The enterprise business maintained an 8% year-over-year growth, while the cloud business saw a 30% increase in revenue [15] - 5G subscribers reached 16.58 million, accounting for 73% of the total subscriber base, with a net addition of 350,000 in Q3 [14][43] Market Data and Key Metrics Changes - The demand for AI data centers is exceeding supply, indicating a strong market opportunity [10] - The enterprise AI business is expected to grow significantly, with meaningful orders being secured [15] - The B2C service market is shifting towards subscription models, creating new opportunities for telecommunications companies [7] Company Strategy and Development Direction - SK Telecom is focusing on an AI Pyramid Strategy, aiming to become a global leader in AI data centers, B2B, and B2C services [4][5] - The company plans to establish an AI infrastructure super highway to enhance Korea's AI ecosystem [11] - The 2030 target includes total revenue of KRW 30 trillion, with AI contributing 35% [24][55] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of nonrecurring valuation losses on net income but emphasized that these will not affect dividend calculations [21] - The company remains committed to maintaining a stable dividend trend, which is crucial for corporate valuation [20] - Management expressed confidence in the growth potential of AI markets and the company's ability to capitalize on these opportunities [54] Other Important Information - The company has established a partnership with Lambda for AI data centers, with plans to deploy thousands of GPUs [47] - SK Telecom is actively developing a telco-specific LLM in collaboration with the Global Telco AI Alliance [12] - The company is enhancing its AI services, with significant upgrades to its A. platform and a successful promotion of the Perplexity Pro model [13][35] Q&A Session Summary Question: Impact of nonoperating losses on year-end dividend - Management clarified that nonrecurring valuation losses will not affect the calculation of funds for dividend payout, maintaining a commitment to stable dividends [21][20] Question: Corporate value-up plan and index inclusion - Management explained the rationale behind the corporate value-up plan and expressed intentions to enhance corporate value to be included in the Korea Value-up Index in the future [26][24] Question: AI's contribution to earnings and service development - Management detailed the AI Pyramid Strategy focusing on AI DC, AI B2B, and AI B2C as key areas for monetization, with expectations for significant growth [28][31] Question: Promotion of Perplexity Pro and its market response - The promotion was successful, leading to a large number of new customers and strengthening the partnership with Perplexity for future AI product development [37][39] Question: Impact of flagship handset series on 5G subscribers - The launch of new flagship handsets contributed to a net addition of 350,000 5G subscribers, with effective marketing strategies playing a crucial role [43][44] Question: Updates on cooperation with Penguin Solutions for AI DC - Management confirmed plans to open the first AI data center in the Asia Pacific region in December, with a focus on GPU as a Service [47][48]

LeoPatrizi I continue to rate SK Telecom Co., Ltd.'s (NYSE:SKM) [017670:KS] shares as a Buy. I have observed positive signs relating to SKM's core mobile telecommunications business and the company's AI-related growth initiatives. SK Telecom's current valuation metrics indicate that the company's shares have meaningful upside potential. With my prior July 4, 2024, update, I highlighted that SKM is a leading telecommunications company in terms of "mobile segment market share" and "AI competitiveness." Core M ...

SK Telecom Co., Ltd. (NYSE:SKM) Q2 2024 Earnings Conference Call August 9, 2024 2:00 AM ET Company Participants Hee Jun Chung - Investor Relations Yang Seob Kim - Chief Financial Officer Ryeol Jong Kang - Head of ICT Infrastructure Conference Call Participants Joonsop Kim - KB Securities Operator Good morning and good evening. Thank you all for joining this conference call for the earnings results of SK Telecom. This conference will start with a presentation followed by a Q&A session. [Operator Instructions ...

SK Telecom (SKM) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The p ...

X Caliber is now available at Happy Pet Hospital in Bangkok, Thailand, starting this month. Happy Pet is a fullservice veterinary hospital offering a comprehensive array of pet care services, including a pet park, pet taxi and a pet shop. The pet market in Southeast Asia is experiencing rapid growth. Market research firm GlobalPETS estimated the market size at USD 3.3 billion in 2023, with a compound annual growth rate of 13 percent over the past five years. ### The signing ceremony was held at Federation o ...

Both KT Corp. and SK Telecom have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors. Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety o ...

X Caliber is an innovative service that uses AI to analyze X-ray images of dogs/cats within around 15 seconds. Since X Caliber uses cloud to store and retrieve data, there is no need to install a separate server within the hospital. Veterinarians can examine the results of the AI-based image diagnosis on their mobile devices or PCs anywhere, anytime. The sensitivity of X Caliber stands at 86-94%: 94% for detection of 16 different abnormal patterns from abdominal X-ray images of dogs; 88% for detection of 10 ...

Financial Data and Key Metrics - Consolidated revenue for Q1 2024 was KRW 4,474.6 billion, up 2.3% YoY [10] - Operating income was KRW 498.5 billion, similar to the previous year [10] - Net income was KRW 361.9 billion [10] - Non-consolidated revenue was KRW 3,188.7 billion, up 2.3% YoY [10] - Non-consolidated operating income and net income were KRW 436.4 billion and KRW 492.1 billion, respectively [10] Business Line Performance - Data center revenue grew 26% YoY, driven by increased utilization rates [11] - MNO business had 15.93 million subscribers, accounting for 70% of the total subscriber base [14] - SK Broadband's pay TV and broadband subscribers reached 9.59 million and 6.99 million, respectively [14] - Enterprise business grew approximately 10% YoY, with cloud business revenue up nearly 40% [15] - Enterprise AI business, including big data and Vision AI, grew more than 10% YoY [15] - ifland MAU reached 2.46 million, with average user duration increasing to 90 minutes [18] - T Universe MAU exceeded 2.6 million, driven by the popularity of the YouTube premium package [18] Market Performance - The company is expanding its Global Telco AI Alliance (GTAA), which includes 1.3 billion subscribers across 50 countries [13] - Roaming usage grew 1.6x YoY compared to Q1 2019, with family roaming subscribers increasing 46% QoQ [48][55] - The company expects roaming usage to grow further in 2024, driven by family roaming and youth plan promotions [48][55] Strategic Direction and Industry Competition - The company is transitioning to become a global AI company, focusing on the AI Pyramid Strategy [8][9] - The AI Pyramid Strategy includes AI infrastructure, AIX (transforming MNO and enterprise businesses), and AI services [26][27][43] - The company is collaborating with SK Group entities to enhance AI data center capabilities, including liquid immersion technology and AI chips [12] - The GTAA aims to develop a telco-specific large language model (LLM) and expand globally [13][53] - The company is targeting the B2B market with AI products like TransTalker and AI Copywriter [46][64] Management Commentary on Business Environment and Future Outlook - The company is committed to maintaining stable cash dividends while balancing investments for growth [3][29] - The new shareholder return policy aims to return more than 50% of adjusted net income on a consolidated basis [19][29] - The company plans to improve profitability and efficiency through AI technology in its fixed and mobile business [14][52] - The company expects to achieve economies of scale and strengthen negotiating power against big tech companies through the GTAA [13][53] - The company is optimistic about the roaming business, expecting 2024 to be the first year since the pandemic where outbound travel reaches 2019 levels [45][57] Other Important Information - The company announced a medium-term shareholder return policy, with a DPS of KRW 831 for Q1 2024, the same as the previous year [19] - The company is planning to double its data center capacity to over 200 megawatts by 2030 [63] - The company is focusing on multi-cloud and AI cloud business growth, driven by the popularity of ChatGPT [63] Q&A Session Summary Question: Capital Allocation and AI Investment - The company is balancing shareholder returns with investments for growth, particularly in AI [23][24] - The company plans to allocate resources for AI investments while maintaining a stable dividend trend [29][32] - The size of AI investments will depend on opportunities that align with the company's AI strategy [54] Question: MNO Business Strategy - The company is focusing on pricing and differentiated services to grow the MNO business [25] - AI technology will be used to enhance operational efficiency and customer experience [25][52] Question: AI Pyramid Strategy Achievements and Plans - The GTAA has been launched with founding members including Deutsche Telekom, e&, Singtel, and SoftBank [53] - The company plans to expand the GTAA and develop a telco-specific LLM [13][53] - The company is targeting global expansion of its AI services, including the PAA (Personal AI Assistant) [27] Question: Roaming Business Outlook - Roaming usage has grown significantly, with family roaming subscribers increasing 46% QoQ [55] - The company expects further growth in roaming usage in 2024, driven by promotions and differentiated services [48][55] Question: Enterprise Business Performance - Enterprise revenue grew 9% YoY in Q1 2024, driven by data center utilization and cloud contracts [59] - The company expects continued growth in the data center and cloud business, with a focus on multi-cloud and AI cloud [63] Question: Shareholder Return Policy - The new shareholder return policy aims to return more than 50% of adjusted net income on a consolidated basis [19][29] - The company will maintain a stable dividend trend and consider share buybacks when the stock is undervalued [3][29]

Debt and Financial Obligations - As of December 31, 2023, 14.8% of the company's total outstanding long-term debt was denominated in foreign currencies, primarily in Dollars, while most revenue and operating expenses were in Won[362]. - The company has repayment obligations of W1,622.5 billion in 2024 and W2,419.1 billion in 2025 for long-term borrowings and bonds[372]. - Total contractual cash obligations as of December 31, 2023, amounted to W13,555.5 billion, with significant payments due in the next five years[381]. Capital Expenditures - The company's capital expenditures for 2023 totaled W2,973.9 billion, with 46.4% allocated to wireless networks, including 5G and LTE[366][367]. - Planned capital expenditures for 2024 are expected to be similar to 2023, focusing on expanding the 5G network, maintaining LTE, and developing AI-related technologies[371]. - The company expects to spend a similar amount on capital expenditures in 2024 as in 2023, with a focus on AI technology integration across various business areas[371]. Investments and Acquisitions - The company acquired a 100% interest in SK M&Service for W72.9 billion in February 2022 to enhance online distribution capabilities[374]. - In June 2023, the company invested US$100 million in Joby Aviation Inc. to develop emissions-free aerial ridesharing services[375]. Dividends and Cash Flow - Total cash outflows for dividends amounted to W773.8 billion in 2023, down from W904.0 billion in 2022[378]. Defined Benefit Obligations - The present value of defined benefit obligations as of December 31, 2023, was W1,121.7 billion, offset by defined benefit plan assets of W1,292.4 billion, resulting in net defined benefit assets of W170.7 billion[377].