SK Telecom is Korea's No. 1 mobile carrier, with roughly 23 million subscribers. Its structure layers SK Broadband's fixed-line and media business plus a new growth axis in AI data centers and cloud on top of the mobile plans that form the bulk of its revenue, with most of its roughly ₩17 trillion in annual revenue coming steadily from telecom and media. Last year's weakness stemmed from one-off costs tied to a data-breach incident; earnings returned to a normal track from the first quarter of 2026, and in May the company completed the process of making SK Broadband a wholly owned subsidiary, broadening the base for fixed-line and media synergies. What stands out lately is that the stable cash flow of a normalized core business and growth cards in AI and media are strengths, while the facts that revenue has stayed in the ₩17 trillion range for several years in a mature market and that the pace of recovering the roughly 980,000 subscribers lost in 2025 remains a key question must be viewed together.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue fell 4.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.4% lower than a year earlier.
- Even versus the prior quarter (Q4 2025), revenue was 1.5% higher.
- ROE is 3.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 6.3%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder SK Inc. 30.57% (corporate)
Controlling bloc incl. related parties 30.58%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- SK Telecom is Korea's No.
- 1 mobile carrier, with roughly 23 million subscribers, and the bulk of its revenue comes from mobile plans (wireless).
- Added to this is the high-speed internet and IPTV (fixed-line and media) of SK Broadband, now a wholly owned subsidiary, and more recently the company is building AI data centers, cloud, and enterprise AI solutions into a new growth axis.
- In short, it layers AI infrastructure on top of a core business that earns steadily from telecom fees, and the vast majority of its roughly ₩17 trillion in annual revenue arises each month, stably, from telecom and media, where the subscriber base is thick.
- Because subscribers rarely switch once settled, a feature of the telecom business, the core business cash flow is relatively predictable.
- The recent closing price is ₩86,700 and the market cap is ₩18.6 trillion.
- The price sits below its 20-day line (₩91,925) and below its 60-day line (₩97,775).
- Being below both short- and medium-term moving averages, the trend looks subdued.
- The RSI (a gauge that compares upward and downward strength over the last 14 days on a 0–100 scale) is 38.6, a neutral level.
- The price is down 18.0% over one month and up 6.2% over three months, and sits 30.8% below its 52-week high.
- Relative strength versus the KOSPI is 57 (1–99, a measure of return versus the index over the past year weighted toward recent performance; higher means stronger than the market).
- That places it in roughly the top 43% of all stocks by strength.
- Over the past three months it lagged the index by 21.6%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On a confirmed full-year 2025 basis, the P/E is 45.60x and the P/B is 1.45x.
- On the P/E alone this looks very expensive, but there is a clear explanation.
- The denominator, 2025 net profit, temporarily plunged to about one-third of the prior year because of compensation costs from the USIM data-breach incident, so the P/E calculated on last year's trailing results is temporarily inflated.
- That is, 47.65x does not mean the company is inherently a pricey, low-earning firm; it is closer to an illusion created by a single year's figure carrying one-off costs.
- On a forward basis, normalizing for the removal of compensation costs, this year's P/E drops to about one-third of the trailing figure relative to the core business's actual earning power.
- ROE (how much a company earns in a year on its equity) came in at 3.2% and the operating margin at 6.3% for that one year, but these too reflect one-off costs; in normal operations this business generated an operating margin close to double digits.
- The debt ratio is 133.3%, around the average for an industry with heavy telecom-infrastructure investment.
- The dividend is ₩1,660 per share (a yield of about 1.8% at the current price), and the high payout ratio of 86.6% is largely a result of the denominator, earnings, having temporarily shrunk.
- Over five years, revenue held steady from ₩16.7 trillion in 2021 to ₩17.1 trillion in 2025, showing the stability of the core business.
- In 2025 the sharp drops — revenue −4.7%, operating profit −41.1%, net profit −67.3% — did not reflect a weakening business but stemmed from the spring 2025 USIM data-breach incident and the resulting 'Responsibility and Promise' compensation program (SIM replacement, waived cancellation penalties, customer-appreciation packages, and the like), plus one-off burdens such as a Personal Information Protection Commission fine and voluntary-retirement costs.
- These costs were concentrated in the second and third quarters of 2025, and as compensation wound down, the first quarter of 2026 saw revenue of ₩4.4 trillion (−1.4% year on year) and operating profit of ₩537.6 billion (−5.3%), a much smaller decline.
- Against the immediately preceding fourth quarter, where the one-off costs clustered, operating profit rebounded 351% and net profit 181%, returning quickly to a normal track.
- Annualizing this first-quarter net profit (₩316.4 billion) gives about ₩1.27 trillion, essentially the same as 2024 net profit (₩1.25 trillion), a normal year before the incident.
- In other words, it is reasonable to see this year as a recovery year in which one-off costs disappear and earnings return to a normal level; measured against the current market cap, this year's P/E is about 15.5x, which shows the company's actual earnings strength once the breach shock has passed.
- That figure results from the stable earnings the telecom and media core generates on a base of 23 million subscribers, plus fixed-line and media revenue captured more fully through SK Broadband's absorption as a wholly owned subsidiary, and a new growth driver in AI data centers, where revenue grew about 35% year on year.
- The company has not officially issued numerical revenue or profit targets for this year, but the already confirmed first-quarter results and the telecom sector's characteristically stable quarterly flow support this normalization picture.
- The two axes of recent disclosures are 'business-structure reorganization' and 'clarification of sharp price swings.' The May 29, 2026 report on completion of a merger and similar transaction (comprehensive share exchange and transfer) was in the nature of wrapping up the process of SK Telecom absorbing SK Broadband as a wholly owned subsidiary; it is a medium-term structural change in that fixed-line and media will now be more fully reflected in consolidated results and telecom-broadcasting synergies can be grown.
- Separately, when the price swung sharply, reaching ₩139,500 intraday in early June, a June 8 disclosure clarifying rumors and media reports appeared, in which the company officially set out the facts on rumors and reports circulating in the market — showing a phase of large short-term price swings.
- Around the same time, numerous reports of ownership changes by executives and major shareholders and a corporate governance report were also filed, building material for reviewing internal trends and governance together during the reorganization.
- The starting point for understanding this company is that last year's weakness was not a weakening of the business itself but the cost of a one-off event, the breach incident.
- The telecom core, with roughly 23 million subscribers, generates stable cash each month, and as those costs rolled off, earnings quickly returned to a normal track from the first quarter of 2026.
- The trailing P/E of 47.65x on last year's confirmed results is an illusion created by one-off costs; on normalized this-year earnings, the P/E is about 15.5x, similar to the multiple range of peer telecom stocks like KT and LG Uplus.
- In other words, judging it expensive on the trailing 47x alone would miss the core business's actual earning power; on a forward basis, it is not an unreasonable price for a telecom stock.
- Added to this, fixed-line and media revenue is captured more fully through SK Broadband's absorption as a wholly owned subsidiary, and new growth axes in AI data centers and enterprise AI are clear strengths.
- There are, however, points to note.
- Revenue has not grown much beyond the ₩17 trillion range for several years in a mature market, so stable earnings, rather than explosive top-line growth, are closer to this company's essence; and with mobile subscribers down about 980,000 in 2025, the pace of subscriber recovery and the plan mix (ARPU) are the key to this year's revenue.
- Also, after the price rose quickly over five to six months, there were sharp intraday swings in early June, so short-term price volatility is high.
- In sum, it is strong when the stable cash flow of a core business restored to normal earnings and growth cards in AI and media run together, while growth expectations can cool if subscriber-churn recovery is slow or the payoff from new AI businesses is confirmed late.
- The key is to strip away the illusion in the trailing figures and watch, quarter by quarter, whether subscriber recovery and AI and media growth are confirmed on top of normalized earnings.
🔎 Valuation vs peers Fairly valued
Among the three domestic telecoms whose business substance is closest, KT and LG Uplus (excluding SK Telecom) are used as the peer set. All three have wireless telecom as their core, with similar fixed-line, media, and enterprise structures.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KT | 8.44x | 0.83x | 9.80% |
| LG Uplus | 12.31x | 0.73x | 5.91% |
(a) Position versus the true peer set: the trailing P/E of 47.65x looks overwhelmingly higher than peers (KT 7.6x, LG Uplus 11.5x), but this is a distortion arising from 2025 net profit being cut to about one-third of a normal year by one-off breach costs. (b) Premium/discount: the 47x on last year's earnings is not the company's actual earnings strength, and on a forward basis annualizing first-quarter normal earnings, the P/E converges into the telecom multiple range of KT and LG Uplus. The P/B of 1.51x being higher than the two peers is a premium partly reflecting the value of new businesses (AI data centers) and differences in equity turnover. (c) The limits of trailing and the forward basis: in a phase where earnings have passed an inflection point, judgment cannot rest on the trailing P/E on last year's confirmed results alone; the normalized first-quarter 2026 results with compensation costs removed (operating profit up 351% quarter on quarter) must be viewed together. Because it falls into a range similar to peers on a forward basis, it is neither a clear discount nor an excessive premium, so we see it in 'fairly valued' territory — with the condition that subscriber recovery and ROE normalization be confirmed each quarter.
Price history Close · MA20 · MA60
The latest close is ₩86,700 and the market capitalization is ₩18.6 trillion. The price sits below its 20-day moving average (₩91,925) and below its 60-day moving average (₩97,775). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 38.6, a neutral level. The one-month change is -18.0%, the three-month change is +6.2%, and the position relative to the 52-week high is -30.8%. Relative strength versus the KOSPI is 57 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 57% of all stocks. Over the past three months it lagged the index by 21.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -21.55% / 6M +1.14% / 12M -35.67%
Key metrics vs sector median
Valuation
The P/E of 45.60x is above the sector median (12.21x). The P/B of 1.45x is above the sector median (0.83x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 3.2%, below the sector average (9.0%). The operating margin is 6.3%. The debt ratio is 133.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $11.7B | $11.9B | $11.3B | -4.69% ↓ slower |
| Operating profit | $1.2B | $1.2B | $711.3M | -41.14% ↓ slower |
| Net profit | $724.8M | $828.6M | $270.7M | -67.33% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $11.1B | $11.5B | $11.7B | $11.9B | $11.3B |
| Operating profit | $919.4M | $1.1B | $1.2B | $1.2B | $711.3M |
| Net profit | $1.6B | $604.7M | $724.8M | $828.6M | $270.7M |
| Revenue CAGR | 4-yr avg 0.52% | ||||
Revenue fell 4.7% year over year (2023 ₩17.6 trillion → 2024 ₩17.9 trillion → 2025 ₩17.1 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 41.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.5%. The two-year revenue CAGR is -1.5%. In the most recent quarter (Q1 2026), revenue was 1.4% lower than the same period a year earlier. Because quarterly results are relatively even in this industry, revenue also came in 1.5% higher than the prior quarter (Q4 2025), so the recent trend looks solid.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
Technical indicators
What stands out
- —
Points to watch
- Revenue fell 4.7% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-29FilingReport on completion of a merger and similar transaction (comprehensive share exchange and transfer) — wrapping up the reorganization to make SK Broadband a wholly owned subsidiaryMedium term: fixed-line and media (SK Broadband) are more fully reflected in consolidated results, and the base for telecom-broadcasting synergies is strengthened. The comparison basis for consolidated financial metrics may shift versus the past. Source
- 2026-06-08FilingClarification of rumors or media reports — the company officially clarified the facts on market rumors and reports tied to early-June price swingsShort term: a disclosure that appeared right after intraday swings reaching ₩139,500 on June 1–2, signaling a phase of large short-term volatility. Source
- 2026-05-18FilingMultiple filings of ownership reports on specified securities by executives and major shareholders — reports of insider ownership changesShort term: with many executives and major shareholders reporting ownership changes on the same day, insider ownership trends bear watching. Source
- 2026-05-29FilingCorporate governance report disclosure — periodic disclosure of governance status, including the board and shareholder rightsMedium term: governance-transparency information that provides material to review shareholder returns and the decision-making framework during the business reorganization. Source
- 2025-04-19UpdateUSIM subscriber-data cyber breach incident and rollout of the 'Responsibility and Promise' compensation program (SIM replacement, waived cancellation penalties, customer-appreciation packages)Short and medium term: one-off compensation costs sharply damaged second- and third-quarter 2025 earnings, cutting full-year net profit by about 67% year on year. After the compensation costs faded, earnings normalization has been underway from the first quarter of 2026. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Full-year 2025 revenue | 17 ₩99.2 billion | 17 ₩99.2 billion | Confirmed | link |
| Full-year 2025 operating profit | 1 ₩73.2 billion | 1 ₩73.2 billion | Confirmed | link |
| Full-year 2025 net profit (basis difference) | ₩408.4 billion | ₩375.1 billion | Mismatch | link |
| Forward net profit (2026 estimate) | approx. ₩1.27 trillion | — | Unverified | link |
Recent filings
- 2026-06-08Disclosure
- 2026-05-29Merger decision
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18OwnershipOfficers'/major-shareholders' holdings report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.