SK Telecom swings back to Q3 profit as revenue rises 13%

SK Telecom has returned to profitability in Q3, reporting a consolidated net income of KRW 411.8 billion for the quarter, up from a net loss of KRW 166.7 billion in the same period last year. Revenue for the quarter rose 13.1% year-on-year to KRW 4.4973 trillion, with operating income surging 1,040.3% to KRW 552.3 billion. Analysts had expected a net loss of KRW 346.3 billion, while consensus estimates for revenue and operating income were KRW 4.4579 trillion and KRW 534.3 billion, respectively.

The strong performance in operating income can be attributed to a weak comparison with the previous quarter, which was impacted by customer compensation costs following a major data breach. SK Telecom has declared a dividend of KRW 830 per share for the quarter, consistent with the payouts in Q1 and Q2. The company's wireless business is showing a gradual recovery, driven by a shift in marketing strategy towards customer lifetime value, while fixed-line telecommunications revenue increased 7.4% from the previous year, aided by growth in broadband internet subscribers.

SK Telecom is also expanding its artificial intelligence infrastructure business with the launch of SK Hyper and SK Horizon, which will support the development of data centers in Ulsan and Seoul.

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