SKT’s operating profit up over 1,000%, turns to black in Q3

SK Telecom (SKT), Korea’s top mobile service carrier, said Wednesday its third-quarter operating profit surged 1,041.3 percent from a year earlier, while its net profit shifted to the black during the same period.

Operating income for the July-September period was 552.3 billion won ($411.4 million), while sales rose 13.1 percent on-year to 4.49 trillion won. Net profit was 411.8 billion won, shifting from a loss of 166.7 billion won the previous year.

SK Telecom said the steady growth of its main mobile service business, as well as the rise of new ventures involving artificial intelligence (AI), helped improve its performance during the three-month period.

Sales from its AI data centers rose 6.2 percent on-year, while those from other AI-related businesses were up 27.3 percent from a year earlier, the company said.

The wireless carrier founded two new wholly owned subsidiaries — SK Hyper and SK Horizon — in July and August, respectively, to oversee its AI data center business.

SK Hyper is constructing AI data centers in the southern region of Ulsan and Seoul, of which combined capacity will reach 180 megawatts.

The company also plans to apply its indigenous AI foundation model to its enterprise AI services, while expanding its AI service ecosystem through its participation in the government-led AI service development project, SKT added.

“We plan to connect mobile services and AI businesses into a single growth strategy and amplify the synergy between the two areas,” an executive from SK Telecom said.