SK Telecom FY2025 revenue falls 4.7% to $108.8b

SK Telecom reported FY 2025 revenue of KRW 17.1 trillion (US$108.76 billion), a 4.7% drop from the previous year, with an operating income of KRW 1.07 trillion (US$6.81 billion), down 41.1%.

Net income fell 73% to KRW 375.1 billion (US$2.38 billion).

The company added about 230,000 5G subscribers in Q4, reaching 17.49 million, and reported growth in fixed-line internet users.

Its AI business grew nearly 35%, driven by higher use of data centers and expansion into new facilities, including a joint project with AWS in Ulsan.

SK Telecom advanced to Phase 2 of the government-led Sovereign AI Foundation Model project in January 2026.

The company plans to integrate AI into all telecom operations this year, aiming to improve customer experience and profitability.

It also intends to expand its AI data center solutions and submarine cable business to support growth.

🔗 Source: SK Telecom

🧠 Food for thought

Implications, context, and why it matters.

A cybersecurity incident weighed on profits more than day-to-day operations

SK Telecom’s income fell mainly due to the 2025 cybersecurity incident and customer support steps, not a broad slide in regular operations 1.
In Q2, SK Telecom booked about KRW 250 billion in one-off expenses that covered payments to dealers and retail stores, plus USIM (subscriber identity module) replacement costs based on an assumption that all mobile customers might ask for replacements 2.
It also launched a Customer Appreciation Package valued at KRW 500 billion, including a 50% discount on August bills, which it tied to weaker Q3 results 3.
MNO handset subscribers dropped by about 750,000 from end-March to end-June. Later figures suggest a slow rebound, with about 240,000 5G subscribers added quarter-on-quarter in Q3 for 17.26 million, then about 230,000 added in Q4 for 17.49 million 2.

SK Telecom aims to build AI infrastructure and data centers

SK Telecom has set a goal to become a “comprehensive” artificial intelligence data center (AIDC) developer, with expansion plans in Korea and across Asia 4.
The company describes its A.X K1 model as a “Teacher Model” and as digital social overhead capital (SOC), which it frames as a public-good-like digital foundation meant to support a domestic AI ecosystem 5.
It links this push to South Korea’s goal of becoming a top-three global AI power 6.
SK Telecom also points to a wider telecom trend that leans on network infrastructure plus access to sites and power for AI buildouts. Gartner (a technology research and advisory firm) has projected increased adoption of region-specific AI platforms by 2027 6.