SKM changes
Pick any two versions below to diff them.
- Price
- $31.12 → $30.28(−2.7%)
- Thesis
- The market prices SK Telecom for slow growth in a mature Korean mobile market, for the cost of a cybersecurity breach in 2025, and for the risk of large spending on AI data centers. After the USIM breach in April 2025, the company stopped new mobile subscriptions at retail stores until June 23, 2025, paid a fine of W134.8 billion in November 2025, and promised to invest W700 billion in information security over five years. Revenue in the first half of 2026 was 0.5% lower than a year earlier. In June 2026, the company said it is reviewing a plan to build AI data centers with a total capacity of 15 gigawatts in phases, which can need large amounts of capital. Korean stocks also often trade at lower values than similar companies in other markets, and part of the gap may last. For the gap to close, three things must be true. Operating income must stay near the level of the first half of 2026, W1.10 trillion, up 22% from the weak first half of 2025. The AI data center plan must be funded mostly by partners, as in the sale of 37% of SK Horizon, the new data center company, to KKR and IMM for about W1.88 trillion, planned for March 2027. Mobile revenue must grow again as the effect of the breach fades. The Q3 2026 results, removed: estimated for about added: on November removed: 5, added: 4, 2026, and the full-year results in early 2027 give the tests. If these checks pass, the gap can close over the next four to eight quarters. The main reason it may not close is a large AI data center program funded with new debt, with returns that are not yet clear.
- Checkpoints
- Nov removed: 5, 2026 (estimate): added: 4, 2026: Q3 2026 results: revenue and operating income. Pending. Watch: Revenue growth and operating income above the W566.0 billion of Q2 2026 pass; a fall in revenue or operating income fails. Mar 2027 (estimate): SK Horizon share sale closes. Pending. Watch: The sale to KKR and the IMM consortium closes for about W1.88 trillion with the planned new share issue passes; a delay past mid-2027 or a lower price fails.
- Recent events
- Oct added: 28, 2026: SK Telecom said that it will hold its Q3 2026 earnings call on November 4, 2026, at 4:00 p.m. Seoul time, and publish the materials on its IR website that day. Oct 14, 2026: SK Telecom said that, apart from its earlier disclosures, it has no specific plans for a 5 gigawatt overseas AI data center reported by the media. It had earlier said that it is reviewing AI data centers with a total capacity target of 15 gigawatts over the mid to long term. Aug 27, 2026: SK Broadband approved a plan to spin off its data center and subsea cable leased line businesses into a new company, SK Horizon, expected in February 2027. SK Telecom agreed to sell 24.5 million SK Horizon shares to KKR and the IMM consortium for about W1.88 trillion, and SK Horizon plans to issue new shares to them for about W1.20 trillion. After these deals, SK Telecom expects to hold 51% of SK Horizon. Aug 5, 2026: SK Telecom reported preliminary Q2 2026 results. Operating revenue was W4.36 trillion, up 0.5% from a year earlier, and operating income was W566.0 billion, up 67% from W338.3 billion in Q2 2025. Profit for the period was W466.0 billion. Jul 23, 2026: The board approved the creation of a new subsidiary, SK Hyper, to make its AI data center business more competitive, and set August 31, 2026, as the record date for the Q2 2026 dividend. Jun 29, 2026: The board approved the purchase of a stake in SK hynix NAND Product Solutions, an affiliate, for synergies with its AI business. The next day, the company said it is reviewing a plan to build AI data centers with a total capacity of 15 gigawatts in phases.