SK Telecom Q3 revenue falls 12% to $2.8b on customer package costs

SK Telecom reported Q3 2025 consolidated revenue of around 4.0 trillion won (US$2.81 billion) and operating income of 48.4 billion won (US$33.9 million), down 12.2% and 90.9% year-on-year, respectively.

The company, a major telecom operator in South Korea, cited its Customer Appreciation Package as a key factor in the earnings drop.

On a non-consolidated basis, SK Telecom posted revenue of around 2.7 trillion won (US$1.89 billion), an operating loss of 52.2 billion won (US$36.5 million), and a net loss of 206.6 billion won (US$144.6 million).

Its 5G subscriber base rose by around 240,000 from the previous quarter to 17.3 million.

The AI data center business brought in 149.8 billion won (US$104.9 million) in revenue, while the AIX segment reported 55.7 billion won (US$39.0 million).

In October, SK Telecom signed an MoU with OpenAI on AI data center development.

The company is investing 700 billion won (US$490 million) in information security over five years and has provided 500 billion won (US$350 million) in customer benefits since August 2025.

🔗 Source: SK Telecom

🧠 Food for thought

Implications, context, and why it matters.

SK Telecom’s customer package is a time-limited cost that does not change Average Revenue Per User (ARPU) long term

The Customer Appreciation Package cut August 2025 bills by 50% and adds 50GB each month through December 2025 1. The impact lands over five months, then rolls off.
Management launched the program after a cybersecurity breach to rebuild trust 1. They treat it as a one-off charge, not a new price floor.
Core telecom service posted a quarter-over-quarter recovery in Q3 1. 5G subscribers rose by 240,000, which supports steady demand 1.

Vendors can target SK Telecom’s Ulsan data center procurement starting now

SK Telecom broke ground on the Ulsan AI Data Center in August and began full construction 1. Phase one totals 40MW by November 2027, with 100MW by February 2029 2.
The company signed an integrated deal with Schneider Electric for switchgear and Uninterruptible Power Supply (UPS) 1. The scope also covers transformers and automated control systems 1. Buying leans toward turnkey Mechanical, Electrical, and Plumbing (MEP) solutions.
Plans call for 60,000 GPUs 2 and an MoU with OpenAI 1. Suppliers of high-speed networking and GPU racks can start outreach as sourcing ramps. Liquid cooling and prefabricated data center modules also fit the plan.