SKT's Operating Profit Plunges 91%... "No Dividend for Q3"

Subscriber Market Share Falls Below 40%,
Direct Hit from Waived Termination Penalties
Accelerating AI Transition Amid Crisis

SK Telecom's operating profit for the third quarter plummeted by 90.9% compared to the same period last year. The sharp decline is attributed directly to a large-scale customer compensation program implemented following the hacking incident in April.

According to SK Telecom's consolidated provisional results disclosed on the 30th, revenue for the third quarter of 2025 amounted to 3.9781 trillion won, with operating profit at 48.4 billion won. Revenue decreased by 12.2% year-on-year, while operating profit dropped by 90.9%. SK Telecom announced, "Due to changes in the business environment and this quarter's results, we have decided not to pay a cash dividend for the third quarter."

On a separate basis, excluding subsidiaries, revenue was 2.6647 trillion won, with an operating loss of 52.2 billion won and a net loss of 206.6 billion won, marking a turnaround to a deficit compared to the same period last year. Separate revenue also declined by 16.8%. Industry analysts attribute the revenue decline to a drop in subscriber market share below 40% following the hacking incident.

Previously, in July, SK Telecom introduced a customer compensation program worth approximately 500 billion won and decided to waive contract termination penalties. Since August, the company has been sequentially implementing its "Customer Appreciation Package," which includes reduced telecom fees, additional data offerings, and 50% discounts at partner companies such as Paris Baguette.

SK Telecom is also accelerating its transition to an AI-centered business structure in response to the current crisis. The AI Data Center (AI DC) and AI Infrastructure Service (AIX) businesses recorded revenues of 149.8 billion won and 55.7 billion won, respectively, resulting in a 35.7% year-on-year growth in the AI business. The company plans to integrate its company-wide AI capabilities under "AI CIC," commence construction of the Ulsan AI Data Center, and expand its global AI network through collaboration with OpenAI.

Additionally, SK Telecom has applied GPT-5 to its "A.Dot" service to improve conversational quality and is expanding this application to major services such as T Map. The enterprise AI solution "A.Dot Biz" is also being promoted for adoption across various industries.

To restore customer trust, SK Telecom has established an "Information Security Innovation Plan" that will invest a total of 700 billion won over the next five years. The company is implementing a Zero Trust-based security system and introducing service innovations such as restoring membership grades and subscription tenure.

Chief Financial Officer Kim Yangsub stated, "Restoring customer trust is our top priority. By turning this crisis into an opportunity and generating tangible results in our AI business, we will become a stronger company."

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