SK Telecom (NYSE:SKM) Announces Earnings Results, Beats Estimates By $0.07 EPS

SK Telecom (NYSE:SKM) released its earnings results on Wednesday. The Wireless communications provider reported $0.75 EPS for the quarter, beating the consensus estimate of $0.68 by $0.07, Zacks reports. SK Telecom had a net margin of 4.23% and a return on equity of 5.30%. The firm had revenue of $3.31 billion during the quarter, compared to analysts’ expectations of $3.27 billion.

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

• SK Telecom reported continued earnings recovery, with operating income of KRW 552.3 billion for the quarter and more than KRW 500 billion for the third consecutive quarter; nine-month operating income reached KRW 1.656 trillion.
• The core mobile business showed improving momentum: mobile service revenue and ARPU rose quarter over quarter, which management attributed to attracting higher-value subscribers and expanding into new customer segments. The company expects gradual revenue recovery to continue in the fourth quarter.
• SK Telecom declared a quarterly dividend of KRW 830 per share and said it aims to maintain at least the current dividend level, supported by stable earnings and cash flow.
• AI data center expansion is a major growth priority, but projects remain dependent on securing customer demand and external financing. SK Hyper aims to secure demand for initial capacity by the first half of 2027, with phased openings targeted from the second half of 2029; management acknowledged that data center investment will increase capital needs.
• The next shareholder-return policy is still under review, with details expected before the first-quarter 2027 dividend decision. Management said any proceeds from a potential Anthropic stake sale would be allocated after weighing growth investment needs, market conditions, and shareholder value.

SK Telecom Price Performance

SK Telecom stock traded down $1.83 during mid-day trading on Thursday, hitting $29.46. 2,078,882 shares of the company were exchanged, compared to its average volume of 1,979,473. The company has a quick ratio of 1.22, a current ratio of 1.25 and a debt-to-equity ratio of 0.49. The business has a fifty day moving average of $34.89 and a 200 day moving average of $33.87. SK Telecom has a 1-year low of $19.66 and a 1-year high of $47.18. The company has a market capitalization of $11.31 billion, a PE ratio of 23.57 and a beta of 0.78.

Analysts Set New Price Targets

A number of analysts have commented on SKM shares. JPMorgan Chase & Co. upgraded SK Telecom from a “neutral” rating to an “overweight” rating in a research report on Thursday, July 16th. Zacks Research upgraded SK Telecom from a “strong sell” rating to a “hold” rating in a research report on Monday, October 12th. Finally, Weiss Ratings upgraded SK Telecom from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce”.

SK Telecom Company Profile

SK Telecom Co, Ltd. is a South Korean telecommunications company that provides mobile communications and information technology services. The company offers wireless voice and data services, mobile connectivity, internet access, and related digital products to consumers and businesses.

Through its broadband and media operations, SK Telecom provides fixed-line internet, internet protocol television, and video and entertainment services. It also serves corporate and institutional customers with enterprise telecommunications, cloud, data center, cybersecurity, and other technology solutions.

SK Telecom is headquartered in South Korea and primarily serves the South Korean market, while also pursuing international opportunities through technology partnerships and investments.