SKT Reports Q3 Operating Profit of 465.6 Billion KRW, Up 18.5% YoY

Growth in New Businesses Such as Media and Enterprise Centered on Wired and Wireless Communications

[Asia Economy Reporter Lim Hye-seon] SK Telecom announced on the 10th that its operating profit based on consolidated financial statements for the third quarter of this year reached 465.6 billion KRW, an 18.5% increase compared to the same period last year. Revenue rose 3.0% to 4.3434 trillion KRW. This growth was driven by continued expansion in new growth business areas such as media and enterprise, centered on wired and wireless communications. Net profit, excluding equity method gains from SK Hynix, was recorded at 245.6 billion KRW, a 66.7% decrease.

Based on separate financial statements, SKT's third-quarter revenue and operating profit grew by 3.1% and 21.6%, respectively, to 3.1226 trillion KRW and 388.7 billion KRW. Separate net profit increased 92.6% year-on-year to 305.1 billion KRW, due to a one-time gain from the sale of Hana Card shares.

SKB's revenue and operating profit achieved 1.0442 trillion KRW and 79.7 billion KRW, growing 1.9% and 1.4% year-on-year, respectively. SKB maintained its number one position in net IPTV subscriber additions, continuing subscriber growth, and content revenue increased as content procurement improved.

5G Subscriber Growth, Solid Wired and Wireless Performance

SKT explained, "Based on stable wired and wireless performance, new growth businesses such as media, enterprise, and AIVERSE (AI + Metaverse) continue to grow and translate into tangible results."

The wired and wireless communication business continues to grow steadily. As of the end of the third quarter, SKT reported 12.47 million 5G subscribers, accounting for 53% of all handset subscribers. SKT proactively launched new rate plans in the third quarter to enhance customer choice and improve service competitiveness. SKB secured 9.25 million paid broadcasting subscribers as of the end of the third quarter.

Media business revenue increased 20.6% year-on-year to 395.6 billion KRW. New content procurement is improving, and advertising and commerce businesses plan to continuously strengthen competitiveness by utilizing AI technology.

The enterprise business, centered on data centers and cloud, posted revenue of 378.5 billion KRW, an 8.9% increase year-on-year. Cumulative enterprise business revenue exceeded 1 trillion KRW through the third quarter of this year. In particular, cloud revenue increased 90.2% year-on-year due to rising demand from the gaming, finance, and media industries, while data center revenue grew 31.3% year-on-year due to increased traffic.

The AIVERSE business also entered a growth trajectory centered on 'T Universe' and 'Ifland.' The total merchandise sales (GMV) of the subscription business reached 150 billion KRW, marking three consecutive quarters of growth. The positive signal was lit for achieving the 2022 total merchandise sales target of 550 billion KRW set at the beginning of the year. 'Ifland' saw its cumulative user base exceed 12.8 million as of the third quarter. Content development for global expansion and cooperation with local partners are also ongoing.

Enhancing Shareholder and Customer Value

SKT confirmed the third-quarter dividend for 2022 at 830 KRW per share, the same as the first and second quarters. SKT also ranked first in all three major domestic customer satisfaction surveys this year. By proactively launching new 5G rate plans to enhance customer choice and using AI to protect customers from voice phishing, SKT has strived to improve service quality and innovate customer experience.

In October, SKT acquired a 20.77% stake in Conan Technology, an AI solution specialist company with outstanding technological capabilities. The two companies plan to explore specific collaboration measures in various areas such as personnel exchange, technology cooperation, and market expansion to create synergy. This is expected to contribute particularly to the advancement of SKT’s AI service A. (A.Dot) and innovation of AI-based business models.

Kim Jin-won, SKT Chief Financial Officer (CFO), stated, "Based on leadership in the wired and wireless business, tangible results are emerging in new growth businesses such as media and enterprise. We will do our best to enhance shareholder value and innovate as an AI company based on solid performance."

This content was produced with the assistance of AI translation services.