SK Telecom Co. posted mixed results for fiscal 2024, with full-year profits rising despite a significant decline in fourth-quarter performance as the company ramps up artificial intelligence investments.
South Korea’s largest wireless carrier reported annual operating income of 1.82 trillion won ($1.37 billion), up 4% from the previous year. However, fourth-quarter operating profit fell 14.4% to 254.1 billion won ($191 million), suggesting mounting costs from the company’s aggressive push into AI services.
Revenue growth remained modest at 1.9% for the year, reaching 17.94 trillion won ($13.5 billion). The company’s AI-related revenue jumped 19% year-over-year, with its AI transformation business surging 32%.
SK Telecom is betting heavily on AI infrastructure, having opened a new data center in Seoul’s Gasan district and formed partnerships with GPU cloud provider Lambda and AI solutions firm Penguin Solutions. The company’s AI user base expanded to 8 million by year-end.
The board approved a fourth-quarter dividend of 1,050 won per share, bringing the full-year payout to 3,540 won, pending shareholder approval in March.
Despite management’s optimistic outlook on AI initiatives, investors may question whether the substantial technology investments will translate into meaningful profit growth in the near term.
