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Sk Telecom
(NYSE:SKM)
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Rating:64Neutral
Price Target:
$41.00
â–²(3.38% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by mid-range financial performance (improving revenue growth but modest, volatile profitability and weakening free cash flow) and supportive technical momentum (price above key moving averages with positive MACD). This is partially offset by a demanding valuation (high P/E with modest yield), while the latest earnings call adds moderate support due to recovery signals and dividend resumption tempered by subscriber and AI-profitability uncertainties.
Positive Factors
Earnings recovery and operating efficiency
Q2 results show earnings recovery is not limited to top-line growth: operating income rose 67.3% YoY and first-half operating income increased 21.9% while revenue was nearly flat. This supports improved cost control and earnings resilience over the coming quarters.
Negative Factors
Handset subscriber base remains weak
SK Telecom began 2026 with handset subscribers down about 986,000 YoY; Q1 net additions of roughly 208,000 narrowed but did not erase the gap. In a saturated Korean market, a smaller base can constrain recurring service revenue and weaken scale benefits.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings recovery and operating efficiency
Q2 results show earnings recovery is not limited to top-line growth: operating income rose 67.3% YoY and first-half operating income increased 21.9% while revenue was nearly flat. This supports improved cost control and earnings resilience over the coming quarters.
Read all positive factors
Sk Telecom (SKM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.24B
Dividend Yield1.61%
Average Volume (3M)2.47M
Price to Earnings (P/E)30.0
Beta (1Y)0.30
Revenue Growth-7.65%
EPS Growth-32.07%
CountryUS
Employees5,054
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1930.35
Shares Outstanding383,365,020
10 Day Avg. Volume2,848,922
30 Day Avg. Volume2,472,630
Financial Highlights & Ratios
PEG Ratio-0.42
Price to Book (P/B)0.91
Price to Sales (P/S)0.66
P/FCF Ratio6.59
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.39
Revenue Forecast (FY)$12.38B
Sk Telecom Business Overview & Revenue Model
Company Description
SK Telecom Co., Ltd. operates as a leading provider of wireless telecommunication services throughout South Korea. Its multifaceted operations are structured into three principal segments: Cellular Services, Fixed-Line Telecommunications Services,...
How the Company Makes Money
SK Telecom primarily makes money by selling telecommunications connectivity and related services. Its core revenue stream comes from mobile service fees paid by subscribers, which include recurring charges for voice, messaging, and—most importantl...
Sk Telecom Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call conveyed a clear recovery trajectory: revenue and operating income have rebounded toward pre‑cybersecurity‑incident levels, handset net additions resumed, AI data center revenue showed strong YoY growth (+89%), and quarterly dividends were reinstated. However, significant legacy impacts remain (handset base still materially down ~986k YoY at the start of the year despite Q1 net adds), and key uncertainties persist around AI business profitability, full‑year dividend sizing, and early commercialization of AI‑RAN/AI traffic opportunities. Highlights and improvements are meaningful but are balanced by unresolved headwinds and limited disclosure on some growth metrics.Positive Updates
Revenue Recovery
Consolidated revenue of KRW 4.39 trillion in Q1 FY2026, up 1.5% quarter-on-quarter, driven by MNO subscriber growth and data center expansion.
Negative Updates
Large Year‑on‑Year Subscriber Shortfall Remaining
Company started 2026 with handset subscribers down ~986,000 year‑over‑year; Q1 net add of ~208k reduces the gap but the subscriber base remains materially below prior-year levels.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Recovery
Consolidated revenue of KRW 4.39 trillion in Q1 FY2026, up 1.5% quarter-on-quarter, driven by MNO subscriber growth and data center expansion.
Read all positive updates
Company Guidance
SK Telecom guided that Q1 FY2026 results show recovery momentum with consolidated revenue of KRW 4.39 trillion (+1.5% Q‑on‑Q) and consolidated operating income of KRW 537.6 billion (quarterly operating income > KRW 500 billion); management reported handset net adds of roughly 208–210k in Q1 (following a Y/Y handset decline of ~986k at the start of 2026), resumed quarterly dividends (Q1 DPS KRW 830) after transferring KRW 1.7 trillion from capital reserves to retained earnings to enable tax‑exempt dividends from the 2026 year‑end, and reiterated a goal to restore full‑year earnings above pre‑cybersecurity‑incident levels; they also flagged AI growth levers—AI data center revenue +89% YoY (Pangyo + higher utilization at Gasan), Ulsan AI DC under construction with additional DCs planned including Seoul—alongside plans to pivot/discontinue low‑margin AI lines, expand AI DC scale, and drive cost efficiency via enterprise AI tools and AX transformation.Sk Telecom Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
65
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.06T | 17.10T | 17.94T | 17.61T | 17.30T | 16.75T |
| Gross Profit | 15.40T | 14.93T | 15.66T | 15.39T | 15.05T | 14.52T |
| EBITDA | 4.72T | 4.57T | 5.86T | 5.63T | 5.32T | 6.11T |
| Net Income | 747.34B | 408.41B | 1.25T | 1.09T | 912.40B | 2.41T |
Balance Sheet | ||||||
| Total Assets | 32.09T | 30.11T | 30.52T | 30.12T | 31.31T | 30.91T |
| Cash, Cash Equivalents and Short-Term Investments | 2.02T | 1.68T | 2.35T | 1.75T | 2.12T | 1.39T |
| Total Debt | 10.44T | 10.77T | 10.76T | 10.66T | 11.08T | 10.37T |
| Total Liabilities | 17.15T | 17.55T | 18.69T | 17.89T | 19.15T | 18.58T |
| Stockholders Equity | 14.88T | 12.46T | 11.70T | 11.39T | 11.32T | 11.58T |
Cash Flow | ||||||
| Free Cash Flow | 1.35T | 1.72T | 2.53T | 1.87T | 2.11T | 1.72T |
| Operating Cash Flow | 3.57T | 3.96T | 5.09T | 4.95T | 5.16T | 5.03T |
| Investing Cash Flow | -3.02T | -1.76T | -2.71T | -3.35T | -2.81T | -3.49T |
| Financing Cash Flow | -1.70T | -2.73T | -1.81T | -2.02T | -1.35T | -2.05T |
Sk Telecom Technical Analysis
Positive
39.66
Price Trends
34.39
Positive
36.25
Positive
30.67
Positive
Market Momentum
1.62
Negative
60.62
Neutral
51.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKM, the sentiment is Positive. The current price of 39.66 is above the 20-day moving average (MA) of 37.15, above the 50-day MA of 34.39, and above the 200-day MA of 30.67, indicating a bullish trend. The MACD of 1.62 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKM.
Sk Telecom Risk Analysis
Sk Telecom disclosed 32 risk factors in its most recent earnings report. Sk Telecom reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sk Telecom Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $18.72B | 14.27 | 9.70% | 5.69% | 16.10% | 24.13% | |
71 Outperform | $14.55B | 15.07 | 13.16% | 8.52% | -3.37% | -27.49% | |
66 Neutral | $9.32B | 9.47 | 7.21% | 4.42% | 5.40% | 39.37% | |
64 Neutral | $15.24B | 29.98 | 5.74% | 1.78% | -7.65% | -32.07% | |
63 Neutral | $37.03B | -69.35 | -0.79% | 3.59% | 16.69% | 87.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
SKM
Sk Telecom
39.34
17.80
82.64%
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-0.62
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VOD
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Sk Telecom Corporate Events
SK Telecom Reiterates No Decision Yet on AI Data Center Financing After July KKR Rumors
Aug 7, 2026
On July 10, 2026, media reports in outlets such as News Tomato suggested that private equity firm Kohlberg Kravis Roberts Co. was reviewing acquisition financing tied to a potential equity investment in SK Telecom’s AI data center project, ...
SK Telecom Posts Strong Earnings Rebound in Q2 2026 Preliminary Results
Aug 5, 2026
SK Telecom released preliminary consolidated and separate results for the second quarter of 2026, covering the period from April 1 to June 30, 2026, at its earnings conference call on August 5, 2026. The data, provided for analysts and investors, ...
SK Telecom Sets August 8 Conference Call for Q2 2026 Earnings
Jul 29, 2026
SK Telecom Co., Ltd. has scheduled a conference call to discuss its 2026 second-quarter earnings results, including a QA session with investors and analysts. The call will be held at the company’s Seoul headquarters on August 8, 2026 at 4:00...
SK Telecom Board Approves Q2 2026 Cash Dividend and Sets August 31 Record Date
Jul 23, 2026
On July 23, 2026, SK Telecom’s board of directors approved a quarterly cash dividend for the second quarter of 2026, setting August 31, 2026 as the record date and fixing the payout at 830 won per common share, equivalent to a 0.9% market di...
SK Telecom to Launch SK Hyper Subsidiary to Drive AI Data Center Expansion
Jul 23, 2026
On July 23, 2026, SK Telecom’s board approved the creation of a new wholly owned subsidiary, SK Hyper Co., Ltd., to spearhead the group’s artificial intelligence data center business in Korea. The new entity will be capitalized at 750 ...
SK Telecom Denies Decision on Reported KKR-Backed AI Data Center Financing
Jul 10, 2026
SK Telecom Co., Ltd. has moved to clarify recent media reports concerning potential financing and a capital increase tied to an artificial intelligence data center project. On July 10, 2026, the company responded to news that KKR is reviewing acqu...
SK Telecom Board Clears 397 Billion Won Capital Injection into AI-Focused Chip Affiliate SKHNPS
Jun 30, 2026
On June 29, 2026, SK Telecom’s board approved a plan to acquire 642 new shares in its U.S.-incorporated affiliate SK hynix NAND Product Solutions Corp., which specializes in semiconductor sales and RD. The investment is structured as an init...
SK Telecom Files 2025 Sustainability Report Detailing ESG Performance
Jun 30, 2026
On June 30, 2026, SK Telecom filed its “SK Telecom Sustainability Report 2025,” detailing sustainability strategies, key activities and ESG performance for the period January 1 to December 31, 2025, with some qualitative updates throug...
SK Telecom Maps Out 15GW AI Data Center Expansion Plan
Jun 30, 2026
SK Telecom’s board on June 29, 2026 approved a future business and management plan to develop large-scale artificial intelligence data centers in phases, reflecting the company’s push into AI infrastructure. The carrier aims to secure ...
SK Telecom Commits Capital to SK hynix NAND Solutions Unit to Bolster AI Strategy
Jun 26, 2026
SK Telecom’s board on June 25, 2026 approved a capital contribution commitment to acquire newly issued shares of affiliated company SK hynix NAND Product Solutions Corp., a U.S.-incorporated semiconductor sales and RD unit. The move undersco...
SK Telecom Highlights 5G Maturity and Profit-Focused Strategy in Q1 2026 Report
Jun 15, 2026
In a quarterly business report for the period from January 1 to March 31, 2026, SK Telecom said it continues to leverage its leadership in 5G, maintaining its position as a premium network operator through technological strength, broad coverage an...
SK Telecom Clarifies Phased Plan for AI Cloud Expansion with NVIDIA
Jun 8, 2026
On June 8, 2026, SK Telecom clarified recent media reports that it plans to build a gigawatt-scale artificial intelligence cloud infrastructure in Korea in collaboration with NVIDIA using the NVIDIA DSX platform. The company stated that while it a...
SK Telecom Finalizes Cash-Based Share Exchange to Fully Acquire SK Broadband
May 29, 2026
On May 29, 2026, SK Telecom completed a comprehensive share exchange with SK Broadband under Korean capital markets and commercial law, making SK Broadband a wholly owned subsidiary through cash consideration instead of issuing new SK Telecom shar...
SK Telecom Sells Treasury Shares to Employees, Retains 0.81% Stake in Treasury Stock
May 18, 2026
SK Telecom Co., Ltd. is a leading South Korean telecommunications operator headquartered in Seoul, providing mobile and fixed-line communications, data and digital services to consumers and enterprises. The company is a major player in Korea’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.