SK Telecom (017670) Q2 2026 earnings summary

Executive summary

• Consolidated revenue reached KRW 4,359.1 billion in Q2 2026, up 0.5% year-over-year, with operating income surging 67.3% to KRW 566 billion and net income up 459.8% to KRW 466 billion, driven by strong AI data center growth, profitability-focused management, and a turnaround in telecommunications.

• AI data center revenue soared 92.5% year-over-year in Q2, with robust expansion in cloud and submarine cable services, and SK Hyper established to accelerate AI infrastructure growth.

• Dividend per share for Q2 2026 was KRW 830, with a policy to return over 50% of adjusted net profit to shareholders for FY2024–2026.

• Completed the full acquisition of SK Broadband, enhancing operational efficiency and business synergies.

• Maintained a solid capital structure, with a debt-to-equity ratio of 1.09 at the end of June 2026.

Financial highlights

• Consolidated revenue for Q2 2026 was KRW 4,359.1 billion (+0.5% YoY), with operating income at KRW 566 billion (+67.3% YoY, +5.3% QoQ), and net income at KRW 466 billion (+459.8% YoY).

• EBITDA increased 17.0% year-over-year to KRW 1,442.3 billion, with an EBITDA margin of 33.1%.

• CapEx for Q2 2026 was KRW 487 billion, down 23.3% year-over-year but up 256.7% sequentially.

• Dividend per share for Q2 2026 was KRW 830, with a dividend yield of 1.4%.

• Basic EPS for H1 2026 was KRW 3,676, compared to KRW 2,086 in H1 2025.

Outlook and guidance

• Continued focus on balancing growth investment in AI data centers and AI businesses with financial soundness and stable shareholder returns.

• SK Hyper established to lead phased AI data center expansion, targeting 5 GW by 2029, with plans for further capacity increases and submarine cable infrastructure expansion.

• Guidance to maintain shareholder return levels similar to 2024, despite large-scale AIDC investments.

• Dividend policy aims to return at least 50% of adjusted net income to shareholders through cash dividends and share buybacks.

• Management targets continued growth in wireless and AI-driven services, with ongoing investment in 5G and AI data centers.