SK Telecom reported consolidated revenue of KRW 4.339 trillion for Q2 2025, down 1.9 percent year-on-year and 2.6 percent quarter-on-quarter.
Operating income of SK Telecom declined 37.1 percent YoY to KRW 338.3 billion, while net income dropped sharply by 76.2 percent to KRW 83.2 billion due to one-time expenses related to customer SIM card replacements and retail store compensations.
SK Telecom’ AI business remained a growth driver, expanding 13.9 percent, led by the AI data center business, which generated KRW 108.7 billion (up 13.3 percent), and AI Transformation revenue, which reached KRW 46.8 billion (up 15.3 percent).
SK Telecom emphasized its long-term strategy centered on AI and data infrastructure, with an eye on achieving KRW 1 trillion in annual AIDC revenue by 2030.
Subscribers
SK Telecom reported a steady increase in subscriber numbers across key segments. The total number of 5G subscribers reached 15.5 million as of the second quarter of 2025, reflecting strong uptake and growing demand for advanced mobile connectivity. The company’s mobile subscriber base rose to 32.2 million, maintaining its leadership in the Korean telecom market.
SK Broadband subscribers grew to 9.8 million, including 6.9 million IPTV subscribers, indicating continued strength in media and broadband services. These gains underscore SK Telecom’s focus on expanding customer reach through next-generation network services and bundled offerings.
ARPU
SK Telecom’s ARPU (Average Revenue Per User) showed year-on-year growth, driven by continued expansion of 5G adoption and stable demand for premium services. The blended MNO ARPU increased to KRW 30,554 in the second quarter of 2025, up from KRW 30,028 in the same period last year. This growth reflects improved subscriber mix and increased usage of value-added services.
SK Telecom attributed ARPU improvement to the growing proportion of 5G users and upselling strategies. Despite competitive market conditions, SK Telecom maintained steady ARPU momentum, reinforcing its strong position in the Korean mobile market.
Capex
SK Telecom reported capital expenditures of KRW 301.6 billion in the second quarter of 2025, bringing the total for the first half of the year to KRW 552.2 billion. The majority of the investments were directed toward enhancing 5G network capabilities and improving overall service quality.
The company emphasized its focus on efficient spending, aligning capex with strategic priorities such as AI infrastructure, next-generation network evolution, and digital service expansion. Compared to the same period last year, the capex level reflects disciplined investment despite ongoing efforts to strengthen technological leadership and customer experience.
AI strategy
SK Telecom is focusing its strategy on advancing as a global AI company by integrating artificial intelligence across its core operations. It is expanding its AI Data Center (AIDC) and AI Transformation (AIX) businesses, both of which showed double-digit growth, with plans to generate over KRW 1 trillion in annual AIDC revenue by 2030.
The company is collaborating with Amazon Web Services and SK Group affiliates to build a major data center in Ulsan, forming part of its broader “AI Infrastructure Superhighway” aimed at making SK Telecom a leading AI hub in the Asia Pacific region.
In response to a recent cybersecurity incident, SK Telecom has launched the ‘Accountability and Commitment Program’ to rebuild customer trust. This includes KRW 700 billion investment over five years in information security, free SIM card replacements, upgraded fraud detection systems, and free mobile security services.
“We are taking a hard look at the cybersecurity incident and are committed to rebuild our business thoroughly and transparently,” said Kim Yang-seob, CFO of SK Telecom. “We ask for our customers’ continued support and trust as we move forward with changes in rebuilding SK Telecom.”
SK Telecom said a KRW 500 billion ‘Customer Appreciation Package’ offers billing discounts and data benefits. The company is also introducing a policy to restore customer benefits if they rejoin within a defined period. These efforts reflect a dual strategy of reinforcing its core telecom business while accelerating the monetization and infrastructure of AI.
Baburajan Kizhakedath