Financial Data and Key Metrics Changes - Consolidated revenue decreased by 1.9% year on year to KRW 43.8388 trillion, primarily due to net subscriber losses and the suspension of new subscriber sign-ups following a cybersecurity incident [5][6] - Operating income fell by 37.1% year on year to KRW 338.3 billion, while net income dropped by 76.2% year on year to KRW 83.2 billion [5][6] - The financial impact of the cybersecurity incident is expected to be more pronounced in the second half of the year, with a revised annual revenue guidance lowered from KRW 17.8 trillion to KRW 17 trillion [19][24] Business Line Data and Key Metrics Changes - The mobile network operator (MNO) revenue declined due to subscriber churn, with a loss of 750,000 handset subscribers from March to June, resulting in a KRW 38.7 billion drop in MNO revenue [18] - Fixed and mobile business segments experienced a decline in subscriber base due to the cybersecurity incident [6] - AI business revenue grew by 13.9% year on year, partially offsetting the decline in telecom revenue, with AIDC revenue increasing by 13.3% year on year to KRW 108.7 billion [7] Market Data and Key Metrics Changes - The number of 5G subscribers decreased by approximately 220,000 quarter on quarter to 17,020,000, alongside losses in broadband and IPTV subscribers [6][7] - The customer appreciation package, which includes tariff discounts and additional data, is expected to impact earnings in Q3 and Q4 [5] Company Strategy and Development Direction - The company aims to restore customer trust through a comprehensive accountability and commitment program, which includes a KRW 700 billion investment over five years for information protection [4][19] - SK Telecom plans to strengthen its core telecom business while continuing to grow its AI business, with a focus on building a hyperscale AI data center in collaboration with AWS [9][10] - The company is committed to enhancing corporate value and business fundamentals despite the short-term financial impacts of the cybersecurity incident [4][10] Management Comments on Operating Environment and Future Outlook - Management acknowledged the significant financial impact of the cybersecurity incident, particularly in the second half of the year, and emphasized the importance of protecting the customer base [19][20] - The company is focused on regaining customer trust and enhancing shareholder value through strategic initiatives and improved security measures [25][28] Other Important Information - The Board of Directors set the second quarter dividend per share at KRW 831, with future dividends to be discussed based on visibility of annual earnings [24][25] - The company is actively participating in government-led sovereign AI projects and has been selected for national AI model development [35][36] Q&A Session Summary Question: Specific response measures to the cybersecurity incident and financial impact - Management detailed the introduction of a customer assurance package and a KRW 700 billion investment plan for information protection, acknowledging the financial impact on MNO revenue and costs associated with the incident [14][18] Question: Full year dividend guidance and strategies to win back customers - The company confirmed the second quarter dividend and stated that future dividends will be discussed based on annual earnings visibility, while outlining strategies to regain customer trust through enhanced security measures and customer appreciation packages [24][25][26] Question: Investment plans for the AI data center and impact on CapEx guidance - Management discussed the investment plans for the Ulsan AI data center, indicating that total CapEx is expected to rise nearly 10% year on year, while maintaining stable trends in combined CapEx [32][34]