SK Telecom Co.,Ltd Q1 FY2025 earnings call

• CFO reported consolidated financial results: revenue down 0.5% YOY, operating income up 13.8% YOY, net income down 0.1% YOY. • Business highlights: 5G and broadband subscribers increased, AI business grew 15.6% YOY, AIDC revenue up 11.1% YOY, AIX up 27.2% YOY. • Adot Biz in beta, over 9 million subscribers, adding LLM agents. • Aster preparing for H2 launch in U.S. • Board resolved Q1 DPS at KRW 831, record date May 31. • Addressed cybersecurity incident: isolated infected systems, enhanced fraud detection, all eligible customers enrolled in USIM protection, upgraded for roaming, suspended new sign-ups, reviewing business management to strengthen competitiveness.

Consolidated revenue was KRW 4,453.7 billion, down 0.5% YOY due to sale of certain subsidiaries. Operating income was KRW 567.4 billion, up 13.8% YOY. Net income was KRW 361.6 billion, down 0.1% YOY. Fixed and mobile business saw continued increase in 5G and broadband subscribers. AI business revenue grew 15.6% YOY. AIDC business had KRW 102 billion revenue in Q1, up 11.1% YOY. AIX revenue was KRW 45.2 billion, up 27.2% YOY. Adot Biz has over 9 million cumulative subscribers and is in beta test, scheduled for H1 launch. Aster completed open beta in U.S. and preparing for H2 official launch.

• Aim to quickly increase data center utilization rates and generate profit via GPU as a Service. • Plan to prepare for hyperscale AIDC business by 2027. • Adot Biz scheduled for official launch in first half of year. • Aster preparing for official launch in second half of year.

• Concerns about customers switching to other operators due to cybersecurity incident. • Suspension of new subscriber sign-ups may impact revenue. • Potential administrative penalties from cybersecurity incident, amount difficult to estimate at this point.

Q: About customers switching to other mobile operators and suspension of new subscriber sign-ups.

A: There was increase in customers switching, company will bear expenses to regain trust. Suspension started May 5, no decision on resumption yet, impact on revenue depends on suspension duration.

Q: Financial impact of cybersecurity incident and impact on shareholder return policy.

A: Uncertain on specific financial impact now, but basic principle of stable dividends remains. Potential costs like administrative penalties hard to estimate, but focus on regaining trust to minimize losses.