SK Telecom has returned to profit after a difficult year. The South Korean operator reported stronger mobile and broadband sales in the third quarter. The rebound follows last year’s major customer data breach.
SKT posted net earnings of KRW412 billion, or about $310 million. A year earlier, it recorded a KRW167 billion loss. Total revenue rose 13.1% to KRW4.5 trillion. EBITDA also climbed 52% to KRW1.44 trillion.
However, the recovery still carries some pressure points. Last year, SKT received a $94 million fine. The penalty followed a leak involving personal data from 25 million customers. The incident damaged trust and affected its subscriber base.
The company lost about one million mobile subscribers after the breach. It now has 30.9 million mobile network customers. That remains around one million below its pre-breach level. Still, revenue trends show better customer value from the remaining base.
Mobile service revenue rose 21.6% to KRW2.6 trillion. Average revenue per user, or ARPU, increased 22% to KRW29,300. This suggests SKT gained more value from each customer.
The company appears less focused on aggressive customer grabs. Instead, it wants to improve customer quality and loyalty. Han Myung-jin, head of the mobile network business, explained the strategy clearly.
He said SKT was “focused on acquiring high-quality subscribers through customer value innovation rather than engaging in competition to acquire subscribers through excessive marketing.”
That approach can protect margins and reduce wasteful spending. Yet it may slow subscriber recovery after the data breach. Operators often face this balance after major trust issues. Quick growth can be expensive, while steady rebuilding takes time.
Meanwhile, broadband delivered another bright spot for SKT. Revenue rose 7.4% as more users adopted gigabit services. Faster broadband remains a strong growth area in mature telecom markets. It also supports demand for better home and enterprise connectivity.
SKT’s AI data center business also expanded. Revenue grew 6.2% due to higher utilization. Rising subsea traffic also helped the unit. This area could become a larger growth engine over time.
The company has reorganized its data center operations. SK Horizon now manages legacy data centers and subsea capacity. Private equity partners have joined that business. SKT still holds a 51% stake.
SK Hyper will focus on new AI data centers. It remains fully owned by SKT for now. CFO Park Jong-seok said the company seeks outside funding.
He added: “While we are discussing contract terms with potential customers, we are also considering various financing options at the same time, including project financing.”
Funding conditions may prove challenging as interest rates rise. Still, SKT believes project strength matters more to investors. Long-term customer contracts could improve confidence.
Finally, SKT said it completed testing of its 5G standalone network. Commercial services should launch next month. The announcement adds momentum to a recovery story still being tested.
