SK telecom’s Q2 OP up 16% on strong 5G, B2B businesses

SK telecom Co. CI

SK telecom Co. managed to post higher-than-expected earnings for the second quarter thanks to a sharp increase in 5G subscribers and continued growth in its B2B sectors, including data centers.

The company announced on Tuesday that its second-quarter sales reached 4.42 trillion won ($3.2 billion), up 2.7 percent from the same period a year ago. Its operating profit stood at 537.5 billion won, up 16 percent during the same period.

The telecommunications division showed a strong performance, with mobile revenue for the quarter reaching 2.67 trillion won, up 2.1 percent from the previous year.

This growth was driven by a rise in 5G subscribers and roaming service users. As of the end of June, 5G subscribers numbered 16.2 million, accounting for 71 percent of the total.

In the non-telecommunications sector, the data center business recorded a 20.5 percent on-year increase in second-quarter revenue, totaling 59.5 billion won.

SK telecom plans to expand its existing data center operations into the rapidly growing AI data center field.

The company recently invested $200 million in Smart Global Holdings (SGH), a U.S. company specializing in AI data center design and construction.

Overall, SK telecom’s enterprise business, including data center business, achieved 434.2 billion won in second-quarter revenue, up 11 percent from a year earlier.

“While solidifying the performance of our wireless and fixed-line businesses to enhance profitability and efficiency, we will also make our achievements as an AI company more tangible in the second half of the year,” said Kim Yang-seop, chief financial officer of SK telecom.

Meanwhile, SK telecom’s second-quarter dividend has been confirmed at 830 won per share, consistent with the first quarter.