South Korean mobile carrier SK Telecom has announced its focus for the year ahead, with plans to prioritize artificial intelligence (AI) and air mobility. The company revealed a 16.2% slump in net profit for the fourth quarter of 2023, largely due to operating costs, although its AI business did deliver solid yearly earnings. SK Telecom’s AI infrastructure division saw a significant 30% increase in data center sales last year. In response to the growing demand for next-generation data centers, the company intends to build a new AI facility and expand its telco-specific large language model business, aiming to break into the global market. Additionally, SK Telecom plans to strengthen its AI service offerings, including its metaverse platform and conversational AI app.
The enterprise division of SK Telecom, which covers Business-to-Business items, experienced an 8.1% surge in sales in 2023. Of note, the Business-to-Business cloud service saw impressive sales growth of over 36.6% during the same period. Looking forward, SK Telecom aims to establish itself in the global urban air mobility and AI healthcare markets through partnerships with US companies.
However, the company also noted that its mainstay telecom unit is facing challenges, with growth in 5G network subscribers and wireless business sales slowing. In the fourth quarter, SK Telecom had 15.7 million 5G subscriptions, a modest increase from the previous quarter’s 15.1 million.
SK Telecom has set a sales target of 17.9 trillion won ($13.5 billion) for 2024, representing a 2% year-on-year increase. Furthermore, the company has finalized a 300 billion won ($226.8 million) stock buyback program and plans to distribute a cash dividend of 1,050 won ($0.79) per share to its fourth-quarter stockholders.
Overall, SK Telecom is shifting its focus towards AI and air mobility, capitalizing on the success of its AI business and expanding its reach in the global market. By prioritizing next-generation data centers, AI services, and strategic partnerships, the company aims to maintain its position as a leading player in the telecommunications industry.
