SK Telecom net profit down 9 percent to $202 million in third quarter

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SK Telecom net profit down 9 percent to $202 million in third quarter

Published: 06 Nov. 2024, 15:49

Logo of SK Telecom [SK TELECOM]

SK Telecom, Korea's leading mobile carrier, said Wednesday that its third quarter net profit had decreased 9.1 percent from a year earlier due to an increase in nonoperating costs.

Net profit for the July-September period came to 280.2 billion won ($202.1 million), down 9.1 percent from a year ago, the company said in a regulatory filing.

Operating profit rose 7.1 percent on year to 533.3 billion won while sales increased 2.9 percent to 4.53 trillion won.

The company said its net profit had decreased due to investments in a partner firm but that its operating profit had improved due to robust performance across its businesses.

Subscribers to the 5G network of the company's mainstay mobile business unit had increased to 16.6 million as of the end of September from the 15 million recorded a year ago.

Subscriptions to its AI agent, A., also tripled to 5.6 million over the same period.

Sales from its data center unit climbed 14 percent on year to 60.9 billion won thanks to a higher operation rate with revenue from its cloud business expanding 30 percent to 47 billion won.

SK Telecom said it would expand its AI business as part of efforts to become a comprehensive AI company.

It plans to open AI data centers in Seoul and Pangyo, Gyeonggi, next month and release a large language model tailored to telecommunications companies next year.

The mobile carrier said it will hand out cash dividends worth 830 won per share to its stockholders in the third quarter.

Yonhap