Financial Data and Key Metrics Changes - Consolidated revenue for fiscal year 2025 was KRW 17,099.2 billion, a decrease of 4.7% year-on-year due to subsidiary sales and a net decline in subscribers following a cybersecurity incident [4] - Operating income fell to KRW 1,073.2 billion, down 41.1% year-over-year, attributed to revenue decline and costs related to the cybersecurity incident [5] - Net income decreased to KRW 375.1 billion, a 73% drop year-over-year, primarily due to penalty payments from the cybersecurity incident [5] - The company decided not to pay out a quarterly dividend for the fourth quarter due to the financial impact of the cybersecurity incident [5] Business Line Data and Key Metrics Changes - The MNO business focused on addressing changes caused by the cybersecurity incident, with plans to restore customer trust and improve operational fundamentals [6][7] - AI business revenue continued a two-digit growth trend, driven by increased utilization rates of data centers and the acquisition of a new data center [7] - The company aims to enhance efficiency and productivity in AI-related businesses to produce meaningful outcomes [8] Market Data and Key Metrics Changes - The overall market for MNO services saw temporary expansion due to competitors waiving cancellation fees, but SK Telecom experienced stabilization with a focus on restoring customer trust [47] - The company plans to minimize revenue impact by winning back subscribers and developing new customer segments in 2026 [51] Company Strategy and Development Direction - The company prioritizes restoring market leadership through customer value innovation and redesigning telecom business elements to offer real value [23] - Plans to innovate business productivity through AI acceleration, applying AI across various areas to improve customer experience and operational efficiency [24] - The company aims to enhance the sustainability of its AI business by focusing on core strengths and improving profitability through cost structure improvements [25] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the cybersecurity incident and emphasized the need to restore earnings and shareholder trust [18] - The focus for 2026 includes improving profitability in the telecom business and enhancing the self-sustainability of the AI business [13][15] - The company plans to utilize AI to boost productivity and improve profitability across its operations [15] Other Important Information - The board of directors set the DPS for fiscal year 2025 at KRW 1,661, pending approval at the annual general shareholders meeting [6] - The company is committed to turning the current crisis into an opportunity to restore customer trust and improve financial performance [8] Q&A Session Questions and Answers Question: Dividend policy for 2026 and earnings normalization - Management aims to restore earnings and return to previous dividend payout levels, considering measures to increase shareholder value [18][19] Question: Strategic directions for new management - The new management will focus on strengthening competitiveness in telecom and AI businesses, with priorities on customer value innovation and AI acceleration [22][23] Question: Equity stake in Anthropic and potential liquidation - Management cannot disclose specific details about the equity stake but will provide updates in the upcoming business report [33][34] Question: Strengths in proprietary foundational model project - The A.X K1 model is recognized for its high-quality responses and is expected to create business opportunities in both B2C and B2B sectors [38][39] Question: Impact of competitors' cancellation fee waivers on MNO business - The company experienced a temporary expansion in the carrier switching market but is focusing on restoring customer trust and improving core business competitiveness [47][48]