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Sk Telecom
(NYSE:SKM)
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Rating:61Neutral
Price Target:
$33.00
▼(-16.79% Downside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by mid-range financial performance (improving revenue but modest/volatile profitability and weakening free-cash-flow trend) and a supportive technical backdrop (price above major moving averages with positive MACD). Valuation is a meaningful offset due to a high P/E and modest dividend yield.
Positive Factors
Recurring mobile franchise
Mobile services remain the company’s dominant revenue base, providing recurring subscription income supported by a nationwide network and established customer relationships. This scale can strengthen retention, support service bundling, and give SK Telecom a durable foundation for adjacent digital and enterprise offerings.
Negative Factors
Weak cash conversion
Positive operating cash flow and free cash flow are being offset by declining free-cash-flow growth and weak conversion of accounting earnings. Persistent pressure would reduce the funds available for network, data-center, and digital investment, while increasing the importance of disciplined capital spending and working-capital management.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring mobile franchise
Mobile services remain the company’s dominant revenue base, providing recurring subscription income supported by a nationwide network and established customer relationships. This scale can strengthen retention, support service bundling, and give SK Telecom a durable foundation for adjacent digital and enterprise offerings.
Read all positive factors
Sk Telecom (SKM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.60B
Dividend Yield2.02%
Average Volume (3M)1.18M
Price to Earnings (P/E)22.4
Beta (1Y)0.38
Revenue Growth-7.65%
EPS Growth-32.07%
CountryUS
Employees5,316
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1917.43
Shares Outstanding383,365,020
10 Day Avg. Volume1,414,217
30 Day Avg. Volume1,175,942
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 Cap1.54
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)2.51
Revenue Forecast (FY)$12.92B
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 connectivity and related services to individual and enterprise customers, with revenue concentrated in the following streams:
1) Mobile service revenue (core): The company earns recurring revenue from w...
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 | 15.02T | 14.93T | 15.66T | 15.39T | 15.05T | 14.52T |
| EBITDA | 4.81T | 4.44T | 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
Negative
39.66
Price Trends
35.89
Negative
35.04
Negative
33.73
Negative
Market Momentum
-1.36
Positive
36.79
Neutral
20.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKM, the sentiment is Negative. The current price of 39.66 is above the 20-day moving average (MA) of 33.53, above the 50-day MA of 35.89, and above the 200-day MA of 33.73, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 20.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $37.81B | 35.51 | 8.91% | 3.32% | -10.33% | -10.39% | |
74 Outperform | $8.50B | 10.56 | 17.54% | 7.80% | 13.99% | 29.93% | |
72 Outperform | $18.67B | 15.09 | 9.70% | 7.62% | 16.10% | 24.13% | |
66 Neutral | $8.06B | 7.74 | 7.21% | 4.84% | 5.40% | 39.37% | |
63 Neutral | $11.67B | 11.78 | 13.16% | 10.44% | -3.37% | -27.49% | |
61 Neutral | $11.60B | 22.39 | 5.74% | 2.02% | -7.65% | -32.07% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
SKM
Sk Telecom
31.47
10.48
49.93%
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TIMB
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Sk Telecom Corporate Events
SK Telecom Schedules November 4 Conference Call on 2026 Third-Quarter Earnings
Oct 28, 2026
SK Telecom announced that it will hold a conference call to discuss its 2026 third-quarter earnings results and conduct a QA session with investors and analysts. The call is scheduled for November 4, 2026, at 4:00 p.m. Seoul time at the company...
SK Telecom Clarifies Media Reports on Overseas AI Data Center Expansion
Oct 14, 2026
On October 13, 2026, media outlets including the Electronic Times reported that SK Telecom was pursuing an additional 5 gigawatts of overseas capacity as part of an AI data center expansion to build an Asian hub. The company clarified in an Octobe...
SK Telecom Highlights Subsidiary Structure and Revenue Mix in First-Half 2026 Report
Sep 16, 2026
SK Telecom reported that for the semi-annual period from January 1 to June 30, 2026, it maintained a diversified group structure anchored by 18 consolidated subsidiaries, following the liquidation of Global AI Platform Corporation Korea Co., Ltd. ...
SK Telecom Disposes Treasury Shares for Employee Allocation
Sep 2, 2026
On August 31, 2026, SK Telecom disposed of 1,061 common treasury shares, part of a disposal program decided on August 27, 2026 and scheduled between August 28 and September 31, 2026. The shares were sold at a disposal price of 94,200 won per share...
SK Telecom to Grant Treasury Shares to Independent Directors as Bonus Compensation
Aug 27, 2026
On August 27, 2026, SK Telecom’s board approved the disposal of 1,061 common treasury shares to be granted as bonus compensation to its five independent non-executive directors, with an estimated aggregate value of KRW 105.7 million based on...
SK Telecom to Raise ₩3.08 Trillion via Partial Sale and Capital Injection into New Data Center Unit SK Horizon
Aug 27, 2026
On August 27, 2026, SK Telecom’s board approved the sale of part of its stake in SK Horizon, a data center and subsea cable subsidiary to be created via a spin-off from SK Broadband, to investors KKR and the IMM Consortium. The off‑mar...
SK Telecom Subsidiary SK Broadband to Spin Off Data Center and Subsea Cable Business
Aug 27, 2026
On August 27, 2026, SK Telecom reported that the board of SK Broadband approved a horizontal spin-off of its data center, including CDN, and proprietary subsea cable-based international leased line businesses into a new unlisted entity tentatively...
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...
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.