SK Telecom ends Q3 with 12.47 million 5G subscribers

During the first three quarter of the year, SK Telecom recorded a net addition of 2.59 million 5G customers

SK Telecom, South Korea’s largest telecom operator, ended the third quarter of the year with a total of 12.47 million subscribers in the 5G segment, up 44.1% year-on-year, the carrier said in its earnings statement.

During the first three quarter of the year, SK Telecom recorded a net addition of 2.59 million 5G customers. The company said it is on track to reach the goal of 13 million 5G subscribers by the end of the year.

At the end of the third quarter, the carrier’s 5G subscribers accounted for 53% of its overall handset subscribers, up from 36% at the end of September 2022.

The telco ended Q3 with a total of 32.83 million mobile subscribers, climbing 3.9% versus Q3 2021.

In Q3, the telco’s mobile service revenue was up 1.9%year-on-year to KRW2.6 trillion ($1.9 billion), with ARPU flat at KRW30,633.

Meanwhile, the operator’s net profit declined by 66.7% to KRW246 billion due to one-off factors including the exclusion of equity method gains from subsidiary SK Hynix.

The telco’s operating revenue in Q3 grew by 3% to KRW4.3 trillion.

Earlier this week, SK Telecom announced a strategy through which the firm aims to become an artificial intelligence (AI) company.

The telco’s CEO Ryu Young-sang said during a meeting with employees that SK Telecom will shape itself into an AI company by combining AI with a wide range of connectivity technologies. “We will leap into SK Telecom’s version of a distinguished AI company that combines AI with connective technologies based on our main business of telecommunications,” the executive said.

To achieve the new vision, the carrier unveiled the following three strategies designed to innovate its five business groups.

Firstly, the carrier said it will redefine its core businesses with AI. By achieving AI transformation of its fixed and mobile telecommunications, media and enterprise businesses, the company said it aims to create new opportunities and growth drivers.

Secondly, SK Telecom will strengthen customer relationships by applying new technologies and content to AI-based services like ‘A.,’ ‘ifland’ and ‘T Universe.’

Thirdly, SK Telecom said it will invest in or acquire companies that can create greater synergies when combined with its AI technologies.

“Although we achieved steady growth over the past year, we are now standing at the point of transformation brought by sudden changes in the international situation,” said Ryu. “We will remain strong and steadfast and continue on our path toward achieving the vision of becoming an AI Company, while thoroughly preparing ourselves for all possible challenges, risks and threats,” he added.

Last year, the company rearranged its business into five different groups, namely fixed and mobile telecommunications, media, enterprise, AIVERSE (AI+Universe), and connected intelligence.