SK Telecom Co., Ltd. Q1 FY2024 earnings call

• AI Infrastructure: Data center revenue grew 26% YoY; full scale launch of AI data center business announced at MWC, plans for global cooperation with Lambda, and mobilizing SK Group capabilities for AI data center. Pursuing telco-specific LLM development with GTAA members. • AIX domain: MNO business focusing on pricing, differentiated services, and AI for operational efficiency; enterprise business growth with cloud and AI components. • AI services: ifland and T Universe progress; T Universe planned to become subscription market. • Shareholder returns: New policy to return over 50% of adjusted net income; Q1 DPS KRW 831 similar to last year; considering share buyback and cancellation when undervalued.

Consolidated revenue for Q1 2024 was KRW 4,474.6 billion, up 2.3% YoY. Operating income was KRW 498.5 billion, net income KRW 361.9 billion. Non-consolidated revenue was KRW 3,188.7 billion, up 2.3% YoY. Operating income was KRW 436.4 billion, net income KRW 492.1 billion. AI Infrastructure domain: Data center revenue grew 26% YoY due to increased utilization. AIX domain: MNO business had 15.93 million subscribers (70% of total); SK Broadband pay TV subscribers 9.59 million, broadband 6.99 million. Enterprise business grew ~10% YoY, cloud revenue up nearly 40% YoY. AI services: ifland MAU 2.46 million, T Universe MAU over 2.6 million.

• New shareholder return policy: Return over 50% of adjusted net income on consolidated basis, no cap on resources. • Dividends: Level likely similar to last year. • AI investments: Will make reasonable investments in line with AI strategy when opportunities align, though specifics not finalized. • Capital allocation: Balancing shareholder returns and AI investments, aiming to create resources for growth through cost control, asset securitization, etc.

• Forward-looking statements subject to change due to market and macro situations.

Q: Regarding new shareholder return policy, will dividends decline?

A: 50% is minimum baseline, actual dividends likely similar to last year, will consider share buyback.

Q: MNO business strategy with slowing growth?

A: Focus on pricing, differentiated services, AI for efficiency; new price plans launched.

Q: Roaming business stats and outlook?

A: Roaming usage up 1.5x in 2023, 1.6x QoQ in Q1 2024; 2024 outlook bright with family roaming and youth plans.

Q: Enterprise business results and outlook?

A: Q1 enterprise revenue KRW 415.4 billion, up 9%; data center growth continuing, cloud focusing on multi-cloud and AI cloud, new AI products launched.