Revenue has contracted for four consecutive quarters, with Q2 2026 showing a -4.7% YoY decline, while operating margin has swung from 0.7% in Q4 2025 to 36.4% in Q2 2026, indicating volatile earnings heavily influenced by non-operational items.
SK Telecom Co.,Ltd (SKM) annual income statement — 28-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Revenue | 17.06T | 17.1T | 17.94T | 17.61T | 17.3T | 16.75T | 16.09T | 15.42T | 16.87T | 17.52T | 17.09T | 17.14T | 17.16T | 16.6T | 16.14T | 15.8T | 15.49T | 14.51T | 14T | 11.86T | 10.52T | 10.61T | 10.21T | 10.77T | 9.32T | 8.38T | 7.41T | 4.43T | 3.46T |
| Revenue Growth % | -4.36% | -4.69% | 1.89% | 1.75% | 3.32% | 4.11% | 4.35% | -8.64% | -3.69% | 2.51% | -0.26% | -0.16% | 3.38% | 2.85% | 2.14% | 2.03% | 6.73% | 3.69% | 17.98% | 12.78% | -0.84% | 3.89% | -5.21% | 15.54% | 11.32% | 13.08% | 67.26% | 27.93% | - |
| Cost of Revenue | 2.04T | 2.17T | 2.28T | 2.22T | 2.25T | 2.23T | 2.17T | 2.39T | 2.91T | 3.1T | 3.19T | 3.3T | 3.08T | 2.79T | 2.82T | 2.7T | 2.4T | 338.03B | 229.03B | 239.15B | 2.1T | 2.23T | 2.3T | 2.28T | 2.36T | 2.5T | 1.2T | 830.07B | 696.24B |
| Gross Profit | 15.02T | 14.93T | 15.66T | 15.39T | 15.05T | 14.52T | 13.92T | 13.02T | 13.96T | 14.42T | 13.9T | 13.83T | 14.09T | 13.81T | 13.32T | 13.11T | 13.09T | 14.17T | 13.77T | 11.62T | 8.42T | 8.37T | 7.92T | 8.49T | 6.96T | 5.87T | 6.21T | 3.6T | 2.77T |
| Gross Margin % | 88.04% | 87.3% | 87.27% | 87.39% | 86.99% | 86.7% | 86.51% | 84.48% | 82.73% | 82.28% | 81.35% | 80.72% | 82.08% | 83.18% | 82.54% | 82.95% | 84.54% | 97.67% | 98.36% | 97.98% | 80.05% | 78.94% | 77.52% | 78.82% | 74.69% | 70.13% | 83.86% | 81.25% | 79.89% |
| Gross Profit Growth % | - | -4.66% | 1.74% | 2.23% | 3.66% | 4.34% | 6.86% | -6.7% | -3.17% | 3.68% | 0.52% | -1.8% | 2.01% | 3.65% | 1.64% | 0.1% | -7.62% | 2.96% | 18.43% | 38.05% | 0.55% | 5.79% | -6.77% | 21.92% | 18.57% | -5.43% | 72.63% | 30.13% | - |
| Operating Expenses | 12.81T | 13.91T | 13.97T | 13.63T | 13.46T | 13.09T | 12.88T | 12.04T | 13.13T | 13.19T | 12.6T | 12.34T | 12.48T | 12.23T | 11.59T | 10.95T | 10.75T | 12.29T | 12.02T | 9.52T | 5.92T | 5.73T | 5.56T | 5.23T | 4.17T | 3.55T | 4.72T | 3.29T | 2.3T |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 5.73T | 4.48T | 5.39T | 5.51T | 5.35T | 5.55T | 5.21T | 5.01T | 4.12T | 4.47T | 4.37T | 4.49T | 4.5T | 4.41T | 4.35T | 4.45T | 4.64T | 4.61T | 4.51T | 4.07T | 4.17T | 4.36T | 4.09T | 5.06T | 4.34T | 4.09T | 2.95T | 1.01T | 1.39T |
| EBITDA Margin % | 33.58% | 26.21% | 30.05% | 31.28% | 30.91% | 33.12% | 32.35% | 32.49% | 24.41% | 25.53% | 25.58% | 26.19% | 26.22% | 26.55% | 26.95% | 28.15% | 29.98% | 31.77% | 32.22% | 34.33% | 39.63% | 41.07% | 40.1% | 47.01% | 46.55% | 48.79% | 39.77% | 22.88% | 40.29% |
| EBITDA Growth % | 10.1% | -16.86% | -2.11% | 2.94% | -3.55% | 6.57% | 3.93% | 21.61% | -7.91% | 2.29% | -2.6% | -0.24% | 2.08% | 1.32% | -2.22% | -4.18% | 0.7% | 2.24% | 10.73% | -2.29% | -4.31% | 6.4% | -19.15% | 16.67% | 6.21% | 38.75% | 190.7% | -27.35% | - |
| Depreciation & Amortization | 3.52T | 3.47T | 3.7T | 3.75T | 3.76T | 4.11T | 4.17T | 4.02T | 3.28T | 3.25T | 3.07T | 2.99T | 2.89T | 2.83T | 2.61T | 2.29T | 2.3T | 2.73T | 2.76T | 1.97T | 1.67T | 1.71T | 1.74T | 1.81T | 1.54T | 1.76T | 1.45T | 706.94B | 927.14B |
| D&A / Revenue % | 20.63% | 20.28% | 20.62% | 21.3% | 21.7% | 24.57% | 25.92% | 26.08% | 19.46% | 18.54% | 17.95% | 17.47% | 16.85% | 17.04% | 16.19% | 14.47% | 14.86% | 18.81% | 19.71% | 16.62% | 15.86% | 16.16% | 17.02% | 16.78% | 16.55% | 21.02% | 19.62% | 15.96% | 26.79% |
| Operating Income (EBIT) | 2.21T | 1.02T | 1.69T | 1.76T | 1.59T | 1.43T | 1.04T | 987.05B | 833.85B | 1.22T | 1.3T | 1.5T | 1.61T | 1.58T | 1.74T | 2.16T | 2.34T | 1.88T | 1.75T | 2.1T | 2.5T | 2.64T | 2.36T | 3.26T | 2.8T | 2.33T | 1.49T | 306.29B | 467.45B |
| Operating Margin % | 12.95% | 5.94% | 9.42% | 9.97% | 9.21% | 8.55% | 6.43% | 6.4% | 4.94% | 6.99% | 7.63% | 8.73% | 9.37% | 9.51% | 10.77% | 13.69% | 15.11% | 12.96% | 12.51% | 17.72% | 23.77% | 24.91% | 23.08% | 30.23% | 30% | 27.77% | 20.15% | 6.92% | 13.5% |
| Operating Income Growth % | - | -39.97% | -3.72% | 10.16% | 11.31% | 38.39% | 4.86% | 18.37% | -31.91% | -6.05% | -12.84% | -6.99% | 1.86% | -9.16% | -19.65% | -7.62% | 24.44% | 7.42% | -16.69% | -15.93% | -5.38% | 12.12% | -27.63% | 16.42% | 20.26% | 55.87% | 387.18% | -34.48% | - |
| Interest Expense | 4M | 388.4B | 436.56B | 384.08B | 318.54B | 290.2B | 266.31B | 393.7B | 312.88B | 322.67B | 307.73B | 330.92B | 329.92B | 321.13B | 396.06B | 308.58B | 371.44B | 401.89B | 356.64B | 241.1B | 235.16B | 249.53B | 273.26B | 410B | 0 | 0 | 212.96B | 0 | 0 |
| Interest Coverage | - | 2.85x | 4.96x | 4.89x | 4.91x | 6.88x | 4.48x | 2.83x | 13.69x | 11.47x | 7.76x | 7.05x | 7.81x | 6.72x | 4.88x | 8.13x | 7.41x | 4.59x | 4.56x | 10.47x | 10.90x | 10.59x | 8.62x | 7.94x | - | - | 7.01x | - | - |
| Interest / Revenue % | 0% | 2.27% | 2.43% | 2.18% | 1.84% | 1.73% | 1.66% | 2.55% | 1.85% | 1.84% | 1.8% | 1.93% | 1.92% | 1.93% | 2.45% | 1.95% | 2.4% | 2.77% | 2.55% | 2.03% | 2.24% | 2.35% | 2.68% | 3.81% | 0% | 0% | 2.88% | 0% | 0% |
| Non-Operating Income | -2M | -1000K | 1000K | -1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K |
| Pretax Income | 1.01T | 722.26B | 1.76T | 1.49T | 1.24T | 1.72T | 905.22B | 807.03B | 3.98T | 3.4T | 2.1T | 2.04T | 2.25T | 1.83T | 1.52T | 2.21T | 2.37T | 1.41T | 1.26T | 2.29T | 1.93T | 2.53T | 2.05T | 2.89T | 2.19T | 2T | 1.34T | 382.18B | 280.26B |
| Pretax Margin % | 5.93% | 4.22% | 9.82% | 8.45% | 7.14% | 10.26% | 5.63% | 5.23% | 23.56% | 19.42% | 12.26% | 11.88% | 13.13% | 11.01% | 9.41% | 14% | 15.32% | 9.69% | 9.01% | 19.27% | 18.33% | 23.89% | 20.09% | 26.81% | 23.45% | 23.85% | 18.05% | 8.63% | 8.1% |
| Income Tax | 298.88B | 347.18B | 374.67B | 342.24B | 288.32B | 446.8B | 221.26B | 262.94B | 843.98B | 745.65B | 436.04B | 519.48B | 454.51B | 400.8B | 288.21B | 601.94B | 559.38B | 355.67B | 299.3B | 694.49B | 545.62B | 685.91B | 608.35B | 827.53B | 698.7B | 850.2B | 366.5B | 100.87B | 129.85B |
| Effective Tax Rate % | 29.55% | 48.07% | 21.27% | 23% | 23.32% | 26% | 24.44% | 32.58% | 21.23% | 21.91% | 20.8% | 25.52% | 20.17% | 21.94% | 18.97% | 27.21% | 23.57% | 25.3% | 23.75% | 30.38% | 28.3% | 27.06% | 29.66% | 28.65% | 31.96% | 42.57% | 27.42% | 26.39% | 46.33% |
| Net Income | 747.34B | 408.41B | 1.25T | 1.09T | 912.4B | 2.41T | 1.5T | 888.7B | 3.13T | 2.6T | 1.68T | 1.52T | 1.8T | 1.64T | 1.15T | 1.61T | 1.84T | 1.25T | 1.22T | 1.65T | 1.38T | 1.85T | 1.44T | 2.06T | 1.49T | 1.15T | 970.13B | 281.31B | 150.41B |
| Net Margin % | 4.38% | 2.39% | 6.97% | 6.21% | 5.27% | 14.37% | 9.35% | 5.76% | 18.54% | 14.84% | 9.81% | 8.86% | 10.49% | 9.87% | 7.14% | 10.21% | 11.89% | 8.59% | 8.69% | 13.9% | 13.16% | 17.47% | 14.11% | 19.14% | 15.95% | 13.7% | 13.1% | 6.35% | 4.35% |
| Net Income Growth % | -26.29% | -67.33% | 14.31% | 19.86% | -62.1% | 60.04% | 69.28% | -71.59% | 20.31% | 55.12% | 10.36% | -15.69% | 9.9% | 42.31% | -28.59% | -12.42% | 47.66% | 2.59% | -26.27% | 19.1% | -25.29% | 28.62% | -30.13% | 38.61% | 29.67% | 18.25% | 244.86% | 87.03% | - |
| EPS (Diluted) | 1949.23 | 1022.75 | 3199.58 | 2750.00 | 2286.67 | 3179.29 | 1691.19 | 2218.52 | 8061.11 | 6692.22 | 4298.55 | 3839.55 | 4601.68 | 4246.23 | 2952.84 | 4447.48 | 3532.94 | 3257.85 | 3222.86 | 4093.29 | 3406.69 | 4527.76 | 3550.65 | 5025.87 | 3228.86 | 2423.53 | 2037.79 | 701.39 | 413.71 |
| EPS Growth % | -25.17% | -68.03% | 16.35% | 20.26% | -28.08% | 87.99% | -23.77% | -72.48% | 20.45% | 55.69% | 11.95% | -16.56% | 8.37% | 43.8% | -33.61% | 25.89% | 8.44% | 1.09% | -21.26% | 20.15% | -24.76% | 27.52% | -29.35% | 55.65% | 33.23% | 18.93% | 190.54% | 69.54% | - |
| EPS (Basic) | - | 1022.75 | 3211.36 | 2752.22 | 2287.61 | 3179.29 | 1691.31 | 2218.54 | 8061.11 | 6692.22 | 4298.61 | 3839.63 | 4601.69 | 4246.23 | 3023.09 | 4447.48 | 3587.82 | 3257.85 | 3222.86 | 4152.01 | 3455.21 | 4601.37 | 3580.52 | 5025.87 | 3228.86 | 2423.53 | 2037.79 | 701.39 | 413.71 |
| Diluted Shares Outstanding | 383.4M | 383.37M | 389.08M | 391.42M | 392.6M | 391.65M | 397.99M | 393.92M | 386.04M | 388.48M | 385.97M | 391.12M | 387.76M | 383.99M | 390.03M | 380.97M | 404.69M | 405.15M | 401.92M | 405.94M | 406.4M | 409.28M | 405.78M | 410.27M | 460.7M | 473.35M | 476.28M | 418.66M | 361.38M |
Quick answers to the most common questions about buying SKM stock.
For fiscal year 2025, SK Telecom Co.,Ltd (SKM) reported total revenue of $17.10T. This represents a 394.0% increase compared to $3.46T in 1998.
SK Telecom Co.,Ltd (SKM) is profitable, generating $408.41B in net income for the fiscal year ending 2025 with a net profit margin of 2.4%.
SK Telecom Co.,Ltd (SKM) reported an operating income of $1.02T, resulting in an operating profit margin of 5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
SK Telecom Co.,Ltd (SKM) generated $14.93T in gross profit for the year, representing a gross profit margin of 87.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory price caps and ARPU stagnation
Revenue Contraction Amid Regulatory Headwinds
SKM's revenue has contracted for four consecutive quarters, with Q2 2026 showing a -4.7% YoY decline, suggesting the company is struggling to grow its top line within the constraints of South Korea's regulated telecom pricing environment.
The persistent negative revenue growth trend, from +2.9% in Q3 2024 to -4.7% in Q2 2026, indicates that regulatory price caps and competitive pressures are overwhelming any volume gains from 5G adoption. This trajectory suggests the company's rate-recovery mechanism is insufficient to offset the structural headwinds of a saturated market and government-mandated tariff reductions. The lack of pricing power implies that future revenue growth will be heavily dependent on new service adoption rather than core telecom rate increases.
Volatile Earnings Mask Underlying Margin Pressure
Operating margin has swung dramatically from 0.7% in Q4 2025 to 36.4% in Q2 2026, indicating that reported profitability is heavily influenced by non-operational items rather than stable, regulated earnings power.
The extreme volatility in operating margin, with a net loss in Q3 2025 followed by a surge to 36.4%, suggests that SKM's earnings are not driven by a consistent regulatory return on invested capital. This pattern is more indicative of a company experiencing one-time gains, asset revaluations, or accounting adjustments rather than a utility earning a stable, authorized return. The underlying core telecom business appears to be generating thin margins, as evidenced by the 12.5% operating margin in Q1 2026, which is more representative of the normalized earnings power.
High Fixed Costs Amplify Revenue Decline Impact
With depreciation and amortization consistently consuming approximately 20% of revenue, SKM's high fixed-cost structure magnifies the impact of top-line contraction on operating profitability, as seen in the Q3 2025 operating loss.
The D&A expense, running at roughly $870-930 billion per quarter, represents a massive fixed cost base that cannot be easily adjusted in response to revenue declines. This structural rigidity means that even modest revenue shortfalls can lead to significant operating losses, as demonstrated in Q3 2025. The company's ability to recover these costs through regulatory mechanisms appears limited, given the persistent revenue contraction, suggesting that margin recovery will require either revenue stabilization or significant cost restructuring.
Non-Recurring Items Obscure Core Earnings Power
The stark contrast between Q3 2025's net loss of $158.2 billion and Q2 2026's net income of $470.6 billion suggests that reported earnings are heavily influenced by non-recurring items, making it difficult to assess sustainable regulated earnings power.
The extreme swings in net income, from a loss to a profit of nearly half a trillion won in two quarters, indicate that SKM's reported results contain significant non-operational components. These could include asset impairments, investment gains or losses from the SK Square spin-off, or tax adjustments that do not reflect the underlying performance of the core telecom business. Investors should focus on the more stable operating income figures to gauge the true earnings trajectory, as the net income line appears to be distorted by these one-time events.
Q3 2025 Loss Marks Potential Structural Shift
The net loss in Q3 2025, the only negative quarter in the dataset, may represent a critical inflection point where the cumulative impact of regulatory pressures and competitive dynamics overwhelmed the company's earnings capacity.
This loss quarter stands out as a potential structural break in SKM's earnings profile, occurring after a period of declining but still positive profitability. The subsequent recovery in Q4 2025 and Q1 2026 suggests it may have been driven by non-recurring charges rather than a fundamental operational collapse. However, the failure to return to the profitability levels seen in early 2024 indicates that the company's earnings power has been permanently reset to a lower level, likely due to the maturation of the 5G investment cycle and intensifying regulatory scrutiny.
AI Pivot May Not Offset Core Telecom Decline
Despite management's strategic pivot toward AI and platform services, the core telecom business continues to contract, with Q2 2026 revenue still below Q1 2024 levels, suggesting the new growth initiatives are not yet material enough to offset structural decline.
The most significant challenge to the investment thesis is that SKM's transformation into an 'AI Company' has not yet translated into measurable top-line growth or margin improvement in the core business. Revenue in Q2 2026 ($4.4T) remains below the Q1 2024 level ($4.5T), indicating that the traditional telecom engine is still decelerating. While the AI and metaverse investments represent long-term optionality, they appear to be consuming capital without generating near-term returns, potentially creating a value trap where investors are paying for future growth that may not materialize while the core business deteriorates.