SK Telecom Q3 net income down 9.1% on non-operating cost
SK Telecom Co., South Korea's leading mobile carrier, reported a 9.1% decrease in net profit for the third quarter compared to the previous year, primarily due to a rise in non-operating costs. The company disclosed that its net profit for the period of July-September amounted to 280.2 billion won ($202.1 million), marking a decline of 9.1% from the same period last year.
Despite the decrease in net income, SK Telecom saw a 7.1% increase in operating profit, reaching 533.3 billion won, and a 2.9% rise in sales, totaling 4.53 trillion won.
Business Performance
The company attributed the drop in net profit to investments in a partner firm. However, it highlighted a strong performance across its various business units, contributing to the growth in operating profit.
SK Telecom's mobile business segment witnessed a surge in fifth-generation communications network subscribers, reaching 16.6 million by the end of September, compared to 15 million a year earlier. 
Additionally, subscriptions for its personal artificial intelligence agent, A., tripled to 5.6 million during the same period.
Furthermore, the data center unit recorded a 14% increase in sales, amounting to 60.9 billion won, driven by higher operational efficiency. 
Revenue from the cloud business within this unit expanded by 30% to 47 billion won.
Future Plans
SK Telecom announced plans to enhance its AI business to establish itself as a comprehensive AI technology company. It intends to inaugurate AI data centers in Seoul and Pangyo in the upcoming month and launch a large language model tailored for telecommunications companies' requirements next year.
As part of its shareholder returns policy, the mobile carrier will distribute cash dividends of 830 won per share to its stockholders in the third quarter.
Overall, SK Telecom remains focused on driving innovation and expanding its presence in the evolving technology landscape.
Link to the original article: SK Telecom Q3 Net Income Article
