SK Telecom (NYSE:SKM) Issues Earnings Results, Beats Expectations By $0.22 EPS

SK Telecom (NYSE:SKM) posted its quarterly earnings results on Wednesday. The Wireless communications provider reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.59 by $0.22, Zacks reports. SK Telecom had a return on equity of 2.78% and a net margin of 2.03%.

Here are the key takeaways from SK Telecom’s conference call:

• Operating profit rose 67.3% year over year to KRW 566 billion, aided by the absence of last year’s cybersecurity incident costs, while cost controls also supported a 5.3% quarterly increase. Revenue grew 0.5% to KRW 4.36 trillion.
• AI data center revenue increased 92.5% year over year, driven by the Pangyo facility, and construction began on a new Seoul data center. SK Telecom also plans to establish SK Hyper to develop AIDC projects, initially focusing on securing land, power, customers and infrastructure for phased capacity expansion toward 5GW.
• Management expects sustained, structural AI infrastructure demand as inference workloads and enterprise and public-sector adoption expand. It said global customer discussions are ongoing and intends to fund much of the planned AIDC build-out through strategic partners, financial investors and project financing rather than direct investment.
• SK Telecom committed KRW 750 billion to SK Hyper, including KRW 330 billion planned for this year, but said total investment requirements could rise and specific plans remain dependent on customer requirements, business models and schedules. Management maintained a quarterly dividend of KRW 830 per share and reiterated its goal of balancing AIDC investment with financial soundness and stable shareholder returns.
• The company also plans to contribute to SK hynix’s AI investment vehicle through installment payments, seeking access to AI technologies and global partnerships that could strengthen its data center business. Management expects group-level synergies through SK Telecom’s customer network, SK Broadband’s operating expertise and SK hynix’s AI ecosystem investments.

SK Telecom Stock Up 0.9%

SKM traded up $0.32 during mid-day trading on Wednesday, reaching $35.12. 1,764,993 shares of the stock were exchanged, compared to its average volume of 2,199,077. SK Telecom has a 1 year low of $19.66 and a 1 year high of $47.18. The stock has a market capitalization of $13.48 billion, a PE ratio of 58.52, a price-to-earnings-growth ratio of 0.20 and a beta of 0.64. The company has a 50 day moving average price of $34.85 and a two-hundred day moving average price of $32.97. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.15 and a current ratio of 1.18.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on SKM shares. JPMorgan Chase & Co. upgraded SK Telecom from a “neutral” rating to an “overweight” rating in a report on Thursday, July 16th. Wall Street Zen upgraded shares of SK Telecom from a “hold” rating to a “buy” rating in a research note on Saturday, July 4th. Weiss Ratings downgraded shares of SK Telecom from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Zacks Research raised shares of SK Telecom from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 26th. Finally, HSBC upgraded shares of SK Telecom from a “reduce” rating to a “hold” rating in a report on Thursday, May 7th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce”.

Institutional Trading of SK Telecom

Institutional investors and hedge funds have recently modified their holdings of the business. Voloridge Investment Management LLC bought a new stake in shares of SK Telecom during the 4th quarter worth $1,509,000. Corient Private Wealth LLC grew its position in shares of SK Telecom by 21.5% during the 4th quarter. Corient Private Wealth LLC now owns 51,730 shares of the Wireless communications provider’s stock valued at $1,061,000 after acquiring an additional 9,147 shares during the period. Squarepoint Ops LLC purchased a new stake in shares of SK Telecom during the 2nd quarter worth approximately $971,000. First Trust Advisors LP raised its holdings in shares of SK Telecom by 168.5% in the 4th quarter. First Trust Advisors LP now owns 45,198 shares of the Wireless communications provider’s stock worth $928,000 after purchasing an additional 28,366 shares during the period. Finally, Verition Fund Management LLC grew its holdings in SK Telecom by 22.2% during the third quarter. Verition Fund Management LLC now owns 42,657 shares of the Wireless communications provider’s stock valued at $921,000 after purchasing an additional 7,737 shares during the period.

About SK Telecom

SK Telecom Co, Ltd. (NYSE:SKM) is South Korea’s largest wireless carrier, offering a comprehensive range of mobile telecommunications services. The company operates 5G, 4G LTE and IoT networks, providing voice, data and messaging solutions to consumers and businesses. Beyond traditional wireless services, SK Telecom delivers fixed-line broadband, digital content platforms, cloud computing and cybersecurity offerings designed to support enterprise digital transformation and the growing demand for high-speed connectivity.

Established in 1984 as Korea Mobile Telecommunications Services, SK Telecom pioneered cellular service commercialization in South Korea and has continually expanded into new technology areas.