Q1 2024 SK Telecom Co Ltd Earnings Call

Good afternoon, I am a huge chunk of euro of SK telecom. Thank you for joining SK Telecoms earnings conference call.

Hee Jun Chung: Good afternoon. I am Heejun Jung, IRO of SK Telecom. Thank you for joining SK Telecom's earnings conference call.

Well, we don't have a comparator quota in China, and India until you've been too.

Hee Jun Chung: Today's conference call will be conducted in the order of the Q&A session after briefly talking about the major events that have been held recently, the performance of the first quarter of 2024, and the achievements of each business.

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Today, we will first deliver a presentation on major events 2020 for Q1 earnings highlights and business performances, which will be followed by the Q&A session.

Hee Jun Chung: Today, we will first deliver a presentation on major events, 2024 Q1 earnings highlights, and business performances, which will be followed by a Q&A session.

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Hee Jun Chung: SK Telecom Co Ltd. CEO Kim Yang-seop, CEO of SK Telecom Co Ltd., as well as executives from each department are attending the event. The event will be broadcast live.

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The call is attended by our executives from relevant business divisions, including young young felt kaman CFO of SK telecom and we're providing consecutive interpretation for the call.

Hee Jun Chung: The call is attended by our executives from relevant business divisions, including Yang Seop Kim, CFO of SK Telecom, and we are providing consecutive interpretation for the call.

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Hee Jun Chung: And as you know, the future outlook and predictions can vary depending on the market and macro environment.

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As you May know I would like to remind you that all forward looking statements are subject to change depending on various sectors, such as market and macro situations.

Hee Jun Chung: As you may know, I would like to remind you that all forward-looking statements are subject to change depending on various factors such as market and macro.

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Hee Jun Chung: That's all for today. Let me now present our CFO. Hello, I'm SK Telecom's CFO, Kim Yang-seol.

Let me now present our CFO.

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Good afternoon. This is Joseph Kim CFO of SK Telecom.

Joonsop Kim: Good afternoon, this is Yangseop Kim, CFO of SK Telecom.

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Joonsop Kim: 2024 is a meaningful year for SK Telecom's 40th anniversary. It will not be an exaggeration to say that it is the history of ICT Korea. SK Telecom Co Ltd, which has been leading the mobile communication market with its innovative services and overwhelming quality experience, is now starting a new challenge for global AI companies.

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'twenty 'twenty four is a very meaningful year as in March the 14th anniversary of SK Telecom. The 40 year history of SK Telecom. Indeed represents the history of ICT Korea, we have been leading the communications market with innovative services and unparalleled quality competitiveness.

Joonsop Kim: 2024 is a very meaningful year as it marks the 40th anniversary of SK Telecom. The 40-year history of SK Telecom indeed represents the history of ICT Korea. We have been leading the communications market with innovative services and unparalleled quality competitiveness. Now, SK Telecom is taking on a new challenge to become a global AI company.

Now SK telecom is taking on a new challenge to become a global AI company.

And as I mentioned on your part or something that I can tell Ya Li.

Joonsop Kim: In February, MWC2024 held in Barcelona held a General Assembly of the Global Telco A.I. Alliance and announced the establishment of a co-operative law for business cooperation such as the co-development of Telco LNM. SK Telecom Co Ltd. will invite representatives from each region to lead a joint venture with GTAA to become a global AI company.

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And W. C 2024 held in Barcelona in February SK Telecom held an inaugural meeting the global Telco AI Alliance or G. T. A a and announced our plan to establish a joint venture for business cooperation, including joint development of Telco specific large language model going forward.

Joonsop Kim: With NWC 2024 held in Barcelona in February, SK Telecom held the inaugural meeting of the Global Telco AI Alliance, or GTAA, and announced a plan to establish a joint venture for business cooperation, including joint development of telco-specific large-language models. Going forward, SK Telecom will invite leading telcos in respective regions to expand the GTAA and lead cooperation among diverse companies, thereby positioning itself as a global AI company.

SK telecom will invite leading telcos in respective regions to expand the G. T. A a lead cooperation among diverse companies, thereby positioning itself as a global company.

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Joonsop Kim: First, I would like to tell you about our financial performance in the 1st quarter of 2024.

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Let me first report on the consolidated financial results for Q1 of 2024.

Joonsop Kim: Let me first report on the consolidated financial results for Q1 of 2020.

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Joonsop Kim: Sales of SK Telecom and SK Broadband grew steadily and increased by 2.3% year-on-year and recorded 4,4746,000,000 KRW. Sales profit was 4,985,000,000 KRW, which is similar to year-on-year, depending on marketing cost and the stable price triangle. The short-term profit is 3,619 billion won.

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Thanks to the stable growth of SK Telecom and SK broadband consolidated revenue posted four trillion $474 6 billion, one up two 3% year over year operating income posted $498 5 billion won a similar level year over year, thanks to the stabilized.

Joonsop Kim: Thanks to the stable growth of SK Telecom and SK Broadband, consolidated revenue posted $4,474,600,000, up 2.3% year over year. Operating income posted $498,500,000, a similar level year over year, thanks to the stabilization of marketing expenses and depreciation costs. Net income posted $361.9 billion.

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Net income posted 361 9 billion won.

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Joonsop Kim: The annual sales of Byuldo were 2.3% higher than the previous year, with a record of 3,887,000,000 won. The operating profit and short-term net profit were 4,364,000,000 won and 4,921,000,000 won, respectively.

On a non consolidated basis revenue posted three trillion 188.7 billion won up two 3% year on year operating income and net income reported $436 4 billion, one and 492.1 billion one respectively.

Joonsop Kim: On a non-consolidated basis, revenue posted $3,188.7 billion won, up 2.3% year-on-year. Operating income and net income were $436.4 billion won and $492.1 billion won, respectively.

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Joonsop Kim: Next, I would like to talk about the main achievements and strategic direction of the 1st quarter of 2024 according to the AI pyramid strategy system of the party.

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Let me now turn to our business highlights for the first quarter of 2024 and strategic directions in accordance with the AI pyramid strategy.

Joonsop Kim: Let me now turn to business highlights for the first quarter of 2024 and strategic directions in accordance with the AEI Pyramid Strategy.

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Joonsop Kim: First, I would like to talk about the area of AI infrastructure, which is the foundation of the AI pyramid.

First I'd like to cover the AI infrastructure domain, which serves as the foundation of the a pyramid.

Joonsop Kim: First, I'd like to cover the AI infrastructure domain, which serves as the foundation of the AI pyramid.

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Joonsop Kim: The data center business recorded a 26% growth in sales compared to the previous year due to the continuous increase in operating efficiency. The company announced the officialization of the AI data center business, which will become an essential infrastructure in the field of AI, at the MWC in February last year and announced a global business cooperation with Lambda, a cloud service company that supplies the latest GPUs from NVIDIA.

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Supported by the continued increase in utilization rates data centre Arabian you grew 26% year on year at N. WC in February SK telecom, declaring a full scale launch of AI data center business, which will be critical infrastructure in the AI domain com.

Joonsop Kim: Supported by the continued increase in utilization rates, data center revenue grew 26% year-on-year. At MWC in February, SK Telecom declared a full-scale launch of its AI data center business, which will be critical infrastructure in the AI domain. The company also announced plans for global business cooperation with Lambda.

And you also announced plans for global business cooperation with Lambda.

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SK telecom.

Joonsop Kim: SK Telecom Co Ltd is working to lead the next-generation AI data center market in the global market. [inaudible] and SK Hynix, a joint venture with SK M-Move to lead commercialization of chip cooling technology. We plan to utilize the data center AI semiconductors of the ancient memory and UV-SAPION of SK Hynix, as well as the data center operating know-how of SK Broadband.

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To be a global leader in the next generation AI data center market SK Telecom is also planning to mobilize capabilities of SK group, specifically, we will cooperate with SK and move to speed up the commercialization of liquid immersion technology capitalize on SK Hynix high bandwidth memory.

Joonsop Kim: To be a global leader in the next-generation AI data center market, SK Telecom is also planning to mobilize the capabilities of the SK Group. Specifically, we will cooperate with SK NMOOV to speed up the commercialization of liquid immersion technology, and leverage on SK Hynix's high-bandwidth memory chips and our subsidiary Cepion's AI chip capabilities for data centers.

And our subsidiary sapiens AI chip capabilities for data centers and utilize SK broadband data center operation and Knowhow.

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Joonsop Kim: [inaudible] We are developing and commercializing Telco LNM with Deutsche Telekom, EN, Singtel, and SoftBank. The FTAA has over 130,000,000 members in over 50 countries around the world, and it has the largest number of multi-language telco data in the world. We will secure not only the scale of the economy but also the negotiability of big tech. The CTA is planning to develop a more advanced Telecom LNM through multilingual Telco data learning and provide specialized services in each region.

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As for Allen, we are pursuing the development and commercialization of telco specific Ll and together with the members of the G T. A a including Deutsche Telekom yen Singtel and Softbank. The G. T. A M members have a total of 1.3 billion subscribers in 50 countries across the world, which.

Joonsop Kim: As for LLM, we are pursuing the development and commercialization of telco-specific LLM together with the members of the GTAA, including Deutsche Telekom, EN, Singtel, and SoftBank. The GTAA members have a total of 1.3 billion subscribers in 50 countries across the world, which enables them to collect multilingual telco-specific data on a scale larger than any big tech company could ever achieve. Through the GTAA, we will achieve economies of scale and strengthen negotiating power against large tech companies. The GTAA joint venture plans to develop a more advanced telco-specific LLM through training with multilingual telco data and provide locally tailored services.

Enables them to collect multi lingual telco specific data on a scale larger than any big Tech company could ever achieve through the G. T. A a we will achieve economies of scale and strengthen negotiating power against large tech companies. The G. T E. Eight joint venture plans to develop a more advanced telco specific allele.

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Joonsop Kim: Next, I will talk about the AIX field.

Next is the a I X domain.

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Joonsop Kim: In the mobile business, the number of 5G subscribers at the time was 15.93 million at the end of March 2024, and the 5G customer share reached 70%. SK Broadband secured 9.59 million subscribers at the end of March 2024 and 6.99 million internet subscribers at the highest speed. It is meaningful that SK Telecom Co Ltd, which is maturing, continues to discover new markets and attract new members. Also, the company is actively introducing AI technology in the wireless business and continues its efforts to make OPEX and CAPEX efficient.

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And then O business recorded 15.93 million subscribers as of the end of March 'twenty, 'twenty, four which accounts for 70% of the total subscriber base.

Joonsop Kim: The M&O business recorded 15.93 million subscribers as of the end of March 2024, which accounts for 70% of the total subscriber base. SK Broadband's pay TV subscribers and broadband subscribers reached 9.59 million and 6..99 million, respectively, as of the end of March 2024. While the fixed and mobile industry is maturing, it is meaningful that our subscriber base continues to grow through new market developments. We are also striving to enhance OPEX and CAPEX efficiency by actively applying AI technology to our fixed and mobile business.

SK broadband pay TV subscribers and broadband subscribers reached 959 million and $6 99 million respectively. As of the end of March 'twenty 'twenty four.

While the fixed and mobile industry's maturing it is meaningful that our subscriber base continues to grow through new market development. We're also striving to enhance opex and capex efficiency by actively applying AI technology to our fixed and mobile business.

Enterprises have isn't it.

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Joonsop Kim: In the enterprise business, it has grown by about 10% compared to its previous year. This cloud business recorded an increase of about 40% year-on-year in recurring sales. Big Data, AICC, Vision AI, and other enterprise AI areas have increased sales by more than 10% compared to the previous year. We will continue to develop innovative AI products, such as the AI simultaneous translation solution, TrendStalker, and will continue to grow the future of enterprise AI as the centerpiece of the B2B business.

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The enterprise business achieved an approximately 10% growth year over year in particular, the cloud business revenue grew nearly 40% year over year, mainly thanks to recurring sales, thereby driving the entire enterprise revenue growth.

Joonsop Kim: The enterprise business achieved an approximately 10% growth year-over-year. In particular, the cloud business revenue grew nearly 40% year-over-year, mainly thanks to recurring sales, thereby driving the entire enterprise revenue growth. The Enterprise AI business, which includes Big Data, AICC, and Vision AI, saw its revenue grow more than 10% year-over-year. We will further promote the Enterprise AI business as a key pillar of our B2B business by continuously developing innovative AI products, such as the recently released TransTalker and AI Simultaneous Interpretation.

The enterprise AI business, which includes big data AI C C and vision AI. So its revenue grow more than 10% year over year. We will further promote the enterprise AI business as a key pillar of our b to b business by continuously developing innovative AI products such as the recently released <unk>.

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Joonsop Kim: Next, I will talk about AI services.

Next AI services.

Joonsop Kim: Next, AI Services.

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Joonsop Kim: ADOT has started to expand its call recording and real-time call translation service, which has attracted great popularity among iPhone users, from April to the end of Android. ADOT will continue to add killer services and evolve into a true AI technology. In the long run, our goal is to secure a new BMW with the success of the Global PAE along with the members of GTA.

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So call recording in summary service and real time, calling interpretation service of eight odd which were very popular among iPhone users are available on Android handsets starting from April.

Joonsop Kim: The call recording and summary service and real-time call and interpretation service of ADOT, which were very popular among iPhone users, are available on Android handsets starting from April. Going forward, ADOT will continue to add killer services and evolve into a truly personal AISP. Our long-term goal is to secure new business models through the successful development of the global PAA together with the GTAA members.

Going forward, a dot will continue to add killer services and evolve into a truly personal AI assistant our long term goal is to secure new business models through successful development of global P. A a together with a G T a members.

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Joonsop Kim: With the launch of E-Form last year and the establishment of an economic system, E-Friend recorded 2.46 million MAO at the end of March 2024, and the average usage time of users is increasing to 90 minutes. It is a service with a core. With the help of the YouTube Premium Package, T-Woods recorded more than 2.6 million users per month at the end of the first quarter of 2024. In the first half of the year, T-Woods will evolve into a subscription market, expand its stock range, and publicize its position as a subscription service that represents Korea.

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As for Eastland, Thanks to the stable trend of if home and economic system launched last year and May you recorded 2.46 million as of the end of March 'twenty 'twenty, four and the average duration per user on the platform increased to 90 minutes, indicating that if land has become a meaningful and substantive platform.

Joonsop Kim: As for IFLAND, thanks to the stable trend of IFHOME and the economic system launched last year, MAU recorded 2.46 million as of the end of March 2024, and the average duration per user on the platform increased to 90 minutes, indicating that IFLAND has become a meaningful and substantive platform for users. T-Universe achieved MAU of more than $2.6 million as of the end of the first quarter of 2024, driven by the popularity of the YouTube Premium package. In the first half of the year, we plan to turn T-Universe into a subscription market to expand partnerships and solidify its position as a leading subscription service in Korea.

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For users.

T universe achieved M. A U of more than $2 6 million as of the end of the first quarter of 2024, driven by the popularity of the Youtube premium package.

In the first half of the year, we plan to turn T universe into a subscription market to expand partnerships and solidify its position as a leading subscription service in Korea.

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Finally, let me turn to shareholder returns.

Joonsop Kim: Finally, let me turn to shareholder returns.

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Joonsop Kim: [inaudible] This is a result of reflecting the will to provide greater support according to the performance improvement by covering the top and bottom based on the resources, including the performance of the subsidiary based on the connection standard. Also, the 1-minute delivery fee was confirmed to be 830 won per week, the same as last year's 1-minute delivery fee.

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SK Telecom recently announced the medium term shareholder return policy of returning to shareholders more than 50% of the adjusted net income on a consolidated basis. The decision is driven by our commitment to enhance shareholder returns in line with earnings improvement by leveraging resources, including subsidiary.

Joonsop Kim: SK Telecom recently announced a medium-term shareholder return policy of returning to shareholders more than 50 percent of the adjusted net income on a consolidated basis. The decision is driven by our commitment to enhance shareholder returns in line with earnings improvement by leveraging resources, including subsidiary results on a consolidated basis and eliminating caps on shareholder returns. The DPS for the first quarter was determined at 8.31, the same as the first quarter of last week.

Our results on a consolidated basis and eliminating caps on shareholder returns the dps for the first quarter was determined at 831, the same as the first quarter of last year.

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Joonsop Kim: This year, we will highlight the achievements of the AI company. SK Telecom Co Ltd. will further emphasize the solid U-mobile-based technology, improve profitability and efficiency, as well as corporate gatherings. On the other hand, we will carry out the AI pyramid strategy in earnest and make concrete achievements to achieve the primary goal of a global AI company.

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As we mentioned at the shareholders' meeting SK Telecom will produce tangible results is an AI company. We will further solidify our strong fixed and mobile business Foundation improved our business fundamentals in terms of profitability and efficiency and produce concrete results by fully executing the a pyramid.

Joonsop Kim: As we mentioned at the shareholders meeting, SK Telecom will produce tangible results as an AI company. We will further solidify our strong fixed and mobile business foundation, improve the business fundamentals in terms of profitability and efficiency, and produce concrete results by fully executing the AI pyramid strategy. We will continue on this journey to achieve our grand vision of becoming a global AI company.

Strategy, we will continue on this journey to achieve our Grand vision of becoming a global company.

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Joonsop Kim: Thank you for your continuous interest and support.

We ask for your continued support and encouragement. Thank you.

Joonsop Kim: We ask for your continued support and encouragement. Thank you.

Chicken with Tau Q&A session. There are some other August meeting, we will now begin the Q&A session Telemundo tumor that you're shipping in patients and <unk> made me back. The first question will be presented by hijacking fermentation securities.

Hee Jun Chung: We will now begin the Q&A session.

Hee Jun Chung: The first question will be presented by Hoijae Kim from Daeshin Securities.

Okay.

Sure, Jonathan Chilean job, particularly on tools.

Kim Hyo-Jung: Hello, I am Kim Hyo-Jung from Daejin Human Rights Organization. I would like to ask you specifically about the resettlement policy. If you look at this policy, the connection adjustment level is more than 50%. In fact, it has not been specified as a tendency in detail, but if it is calculated as a tendency, it is 70%.

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Kim Hyo-Jung: I wonder if there is a possibility that more than 50% will be distributed this time. Until recently, there was a mention of a minimum dividend, but this time it was missing. So, in the case of this year's dividend, I wonder if it would be good to expect a dividend of the same level as last year.

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Kim Hyo-Jung: [inaudible] Secondly, I'd like to know how you are planning to change your capital according to the distribution of resources, such as shareholding, investment, and capital improvement. The most interesting part is the AI strategy that you highlighted a lot today. It looks like we need to invest in AI in earnest from this year onwards. I'd like to know how you are going to distribute the resources and how you are going to invest in AI in a situation where M&A profits are stagnant. Thank you.

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I am Kimura Jae from <unk> Securities I would first like to ask a question regarding your new shareholder return policy are you mentioned that you are planning to return to shareholders more than 50% of the net adjusted income.

Kim Yeojin: I am Kim Yeojin from Daeshin Securities. I would first like to ask a question regarding your new shareholder return policy. You mentioned that you are planning to return more than 50% of the net adjusted income on a consolidated basis. But when we take a look at the past dividend payout trend, the overall payout ratio was about 70% in real terms. Now you are mentioning that it will be more than 50% of the adjusted net income.

Income on a consolidated basis, but when me, let's take a look at the past dividend payout trend. The overall payout trend was.

<unk> ratio was about 70% in real terms and now you're mentioning that it will be more than 50% of your adjusted net income does that mean that there is a likelihood for your dividend payments to decline going forward and until recently you mentioned about the specific amount of dividends and you're planning to pay to shareholders about this.

Kim Yeojin: Does that mean that there is a likelihood for your dividend payments to decline going forward? Until recently, you mentioned the specific amount of dividends that you were planning to pay to shareholders, but this time, it was not included in your presentation. Would it be appropriate for us to expect that this year's dividend payout will be similar to that of last year?

It was not included in your presentation, so would it be appropriate for us to expect that this year's dividend payout will be similar to that of last year and I would also like to understand if you have any plans for share buyback and cancellation in the near future Secondly, I would like to ask a question about your capital allocation.

Kim Yeojin: And I would also like to understand if you have any plans for share buyback and cancellation in the near future. Secondly, I would like to ask a question about your capital allocation plan. I can see that you need resources for shareholder returns, but at the same time, you need resources for investments. And, as you mentioned, you are going to pursue your AI strategy in full swing starting this year, which means that you will have to make investments. While the M&O revenue trend is not very improving, I would like to understand how you are planning to allocate your capital resources and what

Playing I can see that you need resources for shareholder returns, but at the same time, you need resources for investments and as you mentioned you are going to pursue your AI strategy in full swing starting from this year, which means that you will have to make investments are wildly and they know Arabian your trend is not very improving I'd like to understand how you're planning to allocate.

Our capital resources, and what is the size of the AI investment that you're expecting this year. Thank you.

Yeah.

For Q2.

Kim Yang: Hello, I'm Kim Yang-seop from SK Telecom Co Ltd. Thank you for your question.

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I am CFO Jong Soo Kim of SK Telecom. Thank you for your questions I would first like to comment on our new shareholder return policy.

Kim Yang: I am CFO Yang Seok Kim of SK Telecom. Thank you for your questions. I would first like to comment on our new shareholder return policy.

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Kim Yang: As you know, the distribution Policy that has been applied for the past three years is based on a separate standard; after deducting the capex from EBITDA, 30 to 40% of the remaining amount will be distributed. We have heard a lot from investors and shareholders about the dividend policy, and we have thought a lot about how to reflect that in a new policy.

Okay.

Okay.

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I'm going to guess I'm, Jim digits Hush pulling through.

That's helpful.

Oh, I shouldn't call them I don't know I'm teardowns liquids along tower.

I'd open today.

We go into the Hall Chromebook.

So everyone's on the ticket part anyway.

You know about any lesson you though.

As you May know very well for the past three years, our dividend policy was based on a 30% to 40% of the EBITDA minus capex amount on a non consolidated basis and that was the basis for our shareholder return and so far we have received a lot of input from shareholders and investors and we've been trying to accommodate them.

Kim Yang: As you may know very well, for the past three years, our dividend policy was based on 30 to 40% of the EBITDA minus CAPEX amount on a non-consolidated basis, and that was the basis for our shareholder return. And so far, we have received a lot of input from shareholders and investors, and we've been trying to accommodate them as much as possible.

As possible.

So you're gonna take a tragedy in June <unk>.

Kim Yang: The policy that we announced this time is... (inaudible) I think it will be different from the existing policies.

Hello.

So I wanted to be subtle.

On the capital table.

Hi, This is Frank.

Cool.

We've actually total Chuck.

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And the only thing that comes out.

We believe that this new shareholder return policy is quite differentiated from the previous ones in that first of all there's no limit or cap on resources available for shareholder returns and that it is all on a consolidated basis. So that we can share of results of the subsidiaries with shareholders.

Kim Yang: We believe that this new shareholder return policy is quite differentiated from the previous ones in that, first of all, there's no limit or cap on resources available for shareholder returns, and that it is all on a consolidated basis so that we can share the results of the subsidiaries with shareholders.

Well, Jim when she didn't at all.

Kim Yang: As per your question, we have distributed more than 70% of the short-term ratings. If you could answer why we set the baseline to 50%, 50% is literally the minimum lower limit. We've been talking about the three-year policy of the Jeju-Hanan policy for a relatively short period of time. We set a limit of 50% to respond to the risk of future environmental change, but we do not intend to distribute only 50%.

So you got.

Possibly you sound like they don't get one day.

Do you do inside out which puts into the thoughts on kind of guy.

We should put into them.

Could one she's 100 Honeywell.

So you got to do 100 gig or do you think you got it.

And then if you go to a professional and you're going to hit on in Chile, I seem to get up when need be.

Can you I'm doing Tonight that is king.

Paul do you want give useful.

We should put into that number.

Wish you a pleasant.

Yeah.

Uh huh.

And you also asked a question regarding a why we have set the.

Kim Yang: And you also asked a question regarding why we have set the baseline as 50% while we actually used more than 70% of the net income for dividends in the previous years. I'd like to comment on your point.

Baseline as 50%, while we actually are used more than 70% of the net income for dividends in the previous years I'd like to comment on your point. The 50% is just a minimum baseline as we are announcing a three year shareholder return policy three years, it's a rather long term in this regard so we wanted to have some.

Kim Yang: The 50% is just the minimum baseline. As we are announcing the three-year shareholder return policy, three years is a rather long term in this regard, so we wanted to have some cushion against risks around future management environments. So I'd like once again to ask you to see that this does not mean that we will only return 50% of the net income. It is just the minimum level.

Cushion against risks around future management environment, So I'd like to once again ask you to see that this does not mean that we will only return 50% of the net income. It is just the minimum level.

So you know it's important for children and children under regulatory here. So you could you wish that I could wheel.

Kim Yang: We will do our best to improve the situation in every possible way. (Inaudible) We will do our best to raise our standards.

208.

Could you touch at all able to fish.

The other question either.

We will do our best to elevate the baseline by continuing to improve our business fundamentals and we will make sure that we can return more to the shareholders going forward.

Kim Yang: We will do our best to elevate the baseline by continuing to improve our business fundamentals, and we will make sure that we can return more to the shareholders' goals.

Trudell jumbo some telco newness that she doesn't it doesn't give you a look at you Joanna and good morning, gentlemen.

Kim Yang: I'd like to add that the decision on the size of the distribution unit should be made by the board of directors, this year, this year-day-day-down-suit not-one-one-one-one-perseasons-out-out-out-out-out-out-out-all-go-going to the judges to you guys to give it.

Yeah, I think it's a month what are you talking your DSO noon.

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Could you hold them and give them a similarity to give to me though.

Why did your actual size of shareholder returns for each year will be determined through discussions at the board what I can say to the shareholders is that the level of dividends paid out to shareholders will be similar to that of last year, and we will make sure to achieve that.

Kim Yang: While the actual size of shareholder returns for each year will be determined through discussions at the board, what I can say to the shareholders is that the level of dividends paid out to the shareholders will be similar to that of last year, and we will make sure to achieve

unknown: [inaudible]

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Chicago.

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As for potential plans for share buyback and retirement given the recent interest rate trends, we still believe that it is meaningful to buy back and retire shares when the stock price is undervalued.

Kim Yang: As for potential plans for share buyback and retirement, given the recent interest rate trends, we still believe that it is meaningful to buy back and retire shares when the stock price is undervalued.

I know that you could even when she told all our junk.

Kim Yang: The method of payment is based on the principle of cash payment and self-payment, but the priority is to maintain cash payment in a stable manner.

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In terms of what are your children with Honeywell.

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Yeah.

As for a means of shareholder return, we will of course consider both cash dividends and share buyback, but our priority is to maintain a stable cash dividend trend and we will continue to consider a diverse sectors such as valuation financial structure investment for growth and foreign investors seek deciding whether to proceed with additional share buyback.

Kim Yang: As for means of shareholder return, we will, of course, consider both cash dividends and share buyback, but our priority is to maintain a stable cash dividend trend, and we will continue to consider diverse factors such as valuation, financial structure, investment for growth, and foreign investors' interests in deciding whether to proceed with additional share buyback and cancellation.

Jack and cancellation in the future.

Useful kind of location.

Kim Yang: Next, I will talk about the capital allocation plan.

Hey, Mike.

Yeah.

Next I'd like to comment on our cash our capital allocation plans.

Kim Yang: Next, I'd like to comment on our cash and our capital allocation.

Hey, Mike.

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Your.

Telecom, Linda I'm going to use them at all.

Kim Yang: SK Telecom Co Ltd. produces about 5 trillion to 5.5 trillion EBITDA based on the connection, and SK Telecom Co Ltd. If you use 1-1.5 trillion won, about 1 trillion won of cash flow will be left.

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Hum.

Capex in Guangzhou Hangzhou.

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And your children's Umbria, British follow me, though.

Well there has been some fluctuation so consolidated EBITA of SK Telecom is around five to 5.5 trillion won and we spent about three trillion one of Capex and one to $1 five trillion one of recurring expenses, including frequencies and interest payments. Then we have about one trillion won a free.

Kim Yang: While there have been some fluctuations, the consolidated EBITDA of SK Telecom is around 5 to 5.5 trillion won, and we spend about 3 trillion won on CAPEX and 1 to 1.5 trillion won on recurring expenses, including frequencies and interest payments. Then, we have about 1 trillion won of free cash.

Cash flow.

Each of them to move up.

Moura, who his speech them on.

Kim Yang: It is possible to say that a certain scale is a large scale.

So you've got could you need two tunnel.

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Jumped on a tycoon by each one of the things that come into play she didn't we shouldn't forget.

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While you May think that one trillion one of cash our free cash flow is a large amount, but considering about 700 billion one of cash dividends. Each year. It is true that we do not have much room to maneuver around investments for growth and loan management.

Kim Yang: While you may think that $1 trillion won of free cash flow is a large amount, considering about $700 billion won of cash dividends each year, it's true that we do not have much room to maneuver around investments for growth and loan management.

So you've got to do them.

Yeah.

How 'bout Qimonda.

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One of them on in school.

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While we have maintained a relatively high level of shareholder returns corporate value is not just determined by the size of shareholder returns, but I'm sure that investors understand that we need further growth to be able to enhance our corporate value.

Hello.

So you're going to continue to put your sending data to them as well.

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Of course, as we are currently positioned positioned as a as a telecom stock we fully understand that dividend is what supports our evaluation in the market.

It is important to achieve balance between investment for growth and shareholder returns for the purpose of valuation enhancement.

Yeah.

Sometimes you're on your way.

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Cost control one.

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Many of them.

So in order to secure resources for future investments, including investments for AI to drive growth, we will do our best to create additional resources in all domains, including profitability improvement through cost control securitization of certain assets and investment efficiency enhancement. Thank you Tom.

Tom or a gym and educate put in bank of America E meter. The next question will be presented by Samsung Me from Bank of America.

unknown: [inaudible]

Kim Yang: The fact is that it's not just the size of the company that determines the value of the company. I think investors will agree that inventory is very important and necessary for a company's value.

Kim Yang: While we have maintained a relatively high level of shareholder returns, corporate value is not just determined by the size of shareholder returns, but I'm sure that investors understand that we need further growth to be able to enhance our corporate value.

Kim Yang: [inaudible] We fully understand that SK Telecom Co. Ltd. is a foundation that supports corporate value. In the end, I think it is very important to achieve a balance between investment for growth and shareholding for the stock value of a company.

Kim Yang: Of course, as we are currently positioned as a telecom stock, we fully understand that dividends are what supports our valuation in the market. But it is important to achieve a balance between investment for growth and dividends.

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unknown: [inaudible]

Kim Yang: So, in order to secure resources for future investments, including investments for AI to drive growth, we will do our best to create additional resources in all domains, including profitability improvement through cost control, securitization of certain assets, and investment efficiency enhancement. Thank you.

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Are you guys in Cushing, Oklahoma.

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Scott.

And Nissan gentlemen, thank you for this opportunity as you mentioned in your previous answers you are going to continue to try to expand resources available for shareholder return. So in this regard I'd like to get more details on your business plans in particular, the telco revenue and the growth momentum is slowing down.

Lee Joon: The next question will be presented by Sunjeong Lee from Bank of America. Hello, I am Sunjeong Lee from Bank of America. Thank you for the opportunity to answer your question.

Lee Joon: I would like to answer your question in more detail in terms of securing shareholding resources. First of all, it seems that the momentum of growth in sales is continuously weakening in the telecommunications industry. In this situation, I would appreciate it if you could share your future strategies on what you are focusing on in the telecommunications industry. Secondly, you have been working on AI pyramid strategies since last year. Could you please explain in more detail your main achievements and future plans? In particular, if you have any investment plans for securing shareholding resources, please let us know. Thank you.

Lee Joon: Thank you for this opportunity. As you mentioned in your previous answers, you're going to continue to try to expand resources available for shareholder return. So in this regard, I'd like to get more details on your business plans. In particular, telco revenue and growth momentum are slowing down.

So what are your key priorities for this year for your <unk> business as well as strategies and secondly, starting from last year your husband pursuing in implementing the AI pyramid strategy and you're promoting your Eva AI businesses, So I'd like to get a better understanding of the achievement, so far and future plans.

Lee Joon: So, what are your key priorities for this year for your M&O business as well as your strategy? And secondly, starting from last year, you have been pursuing and implementing the AI Pyramid Strategy, and you're promoting your AI businesses. So I'd like to get a better understanding of the achievements so far and future plans. Please also share with us your plans for investments so that we can understand how much resources will be available for shareholder returns.

Please also share with us.

Our plans for investments so that we can understand how much resources will be available for shareholder returns. Thank you.

Yeah that was home depot.

unknown: Thank you for your questions. (inaudible)

Sure.

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Thank you for your questions and for the first question the head of the integrated marketing strategy office will comment on the key priorities and strategies for the M. N O business and then the head of the corporate strategy office will comment on the major achievements and plans for the AI pyramid strategy.

unknown: Thank you for your questions. As for the first question, the head of the Integrated Marketing Strategy Office will comment on the key priorities and strategies for the M&O business, and then the head of the Corporate Strategy Office will comment on the major achievements and plans for the AEI Pyramid strategy.

And so one might get things done.

Got it.

Thank you.

Jinwon Kim: I'm Kim Ji-yong, in charge of the telemarketing strategy. The 5G supply rate is close to 70%, and it is expected that the wireless sales growth, which is based on the 5G signature, will be lower. I understand that you gave me the same order.

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I am Kim <unk> head of integrated marketing strategy Office I believe you asked this question because I'm an old growth trend centered on five G. Subscriber net adds is likely to slow down with the five Steve penetration rate being nearly 70%.

Ji Hoon Kim: I am Kim Ji-hyeong, head of the Integrated Marketing Strategy Office. I believe you asked this question because the M&O growth trend centered on 5G subscriber net ads is likely to slow down with the 5G penetration rate being nearly 70%.

Alright time when it was on average runs them in July.

Ji Hoon Kim: In the future, the main focus of the M&O business is to improve the competitiveness of the payment system and services, increase top-line growth, and to provide operational efficiency through the utilization of AI technology.

Oh come on this one.

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As long as you want.

Neither.

So going forward the key to our metal business will be to grow the top line through pricing and differentiated and competitive services as well as enhancing the operational efficiency through AI technology.

Ji Hoon Kim: So, going forward, the key to our M&O business will be to grow the top line through pricing and differentiated and competitive services, as well as to enhance operational efficiency through AI technology.

Particularly with regard to a man who was once you announce I'm worried about it somebody else if I have assumed equity rule.

Ji Hoon Kim: Specifically, at the end of last March, we wanted to increase the number of customers and the choice of customers by increasing the retention of customers who are sensitive to price by increasing the 30,000 won to 5 sales tax and the additional segment sales tax for the younger generation.

Sometimes it can take months.

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People don't understand that.

So more specifically, we announced new price plans at the end of March including a 30001 range five to your plan and then the additional segment pricing plan for the youth and it is intended to offer a more customer benefits and options in order to retain customers who are sensitive to price.

Ji Hoon Kim: So more specifically, we announced new price plans at the end of March, including a $30,000 one-range 5G plan and an additional segment pricing plan for the youth. And it is intended...

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What do you see them.

Jim managed remotely as well.

SK Telecom via resumed in June returned to what T y.

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So and in consideration of the popularity of OTT services in Korea, we all four of our five G customers discounts for OTT subscriptions and we also launched a new premium price plan and these are part of our effort to continue to create demand based on customers' needs.

Ji Hoon Kim: In consideration of the popularity of OTT services in Korea, we offer our 5G customers discounts for OTT subscriptions, and we also launched a new premium price plan. This is part of our effort to continue to create demand based on customers.

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Uh huh.

Also we restructured roaming plans into power or pricing scheme to respond to increasing travel needs. After the pandemic and this has resulted in increasing our roaming revenue and it is an example of how we continue to develop new revenue streams.

Is that when you open your medicine.

Yeah, Yeah, you're doing as well.

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John and I go to the lines in order to keep putting me as well.

So it didn't move at all on what you're doing holds on to that.

And in terms of market operation, we use AI technology to recommend products and services tailored for our customers and conduct more efficient marketing by utilizing online channels for customer acquisition.

Yes.

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One is a dual fuel and because of that.

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You're talking about.

And finally, we are also planning to utilize AI contact centers to enhance customer experience and improved cost efficiency in an effort to further improve profitability.

Profitability and productivity. Thank you.

Yeah, and you asked me cartoons, let them down.

What's interesting.

unknown: [inaudible]

Ji Hoon Kim: Also, we restructured roaming plans into a borrow pricing scheme to respond to increasing travel needs after the pandemic, and this has resulted in increasing roaming revenue. And it is an example of how we continue to develop new revenue streams.

I guess I'll go up can you give us a little bit.

Hello, I am Cho Huntsville head of the corporate strategy office I like to address your question on the AI purely met strategies major achievements and future plans.

Ji Hoon Kim: In the field of market operations, we use AI to suggest optimized products and services to our customers and actively utilize the online channel to proceed with customer location in a more efficient way.

Ji Hoon Kim: And in terms of market operation, we use AI technology to recommend products and services tailored to our customers. [inaudible] Lastly, we plan to increase productivity and profitability by improving customer experience while improving cost efficiency through customer counseling using AICC. And finally, we are also planning to utilize AI contact centers to enhance customer experience and improve cost efficiency in an effort to further improve M&O profitability and product quality.

Hwan Seok Choi: Hello, I'm Choi Hwan-seok, in charge of the AI Pyramid Strategy. I'd like to talk about the results and plans for the second question, AI Pyramid Strategy.

So disappointing because if the bathrooms just men because I'm sorry pardon me just how is.

Hwan Seok Choi: Hello, I am Choi Hwan Seok, head of the Corporate Strategy Office. I'd like to address your question on the AEI Pyramid Strategy's major achievements and future plans.

Hwan Seok Choi: As the CEO of Seodo said, the Global Telco AI Alliance, or GTAI, which will expand the AI pyramid strategy of our company to the global level, will be officially launched in February.

On a global scale.

Your line is supposed to be the Chi Chi.

Your thought it was a triple.

As the CFO mentioned during his presentation, the global Telco AI alliance or a G. T. A a was officially launched in February to expand SK Telecom's AI pyramid strategy globally.

Hwan Seok Choi: As the CFO mentioned during his presentation, the Global Telco AI Alliance, or GTAA, was officially launched in February to expand SK Telecom's AI pyramid strategy globally.

Oh.

You don't have to do it.

Number two coupons softbank.

Hwan Seok Choi: Europe's DT, the Middle East's EN, Southeast Asia's Singtel, Japan's SoftBank, and our company's founding member. If we combine all of these customers, we will be able to access about 1.3 billion customers in 50 countries.

Could you talk a founding member.

We'll get to the top female skewing some of them do it.

Got it.

And the founding members of the global Telco AI Alliance or Deutsche Telekom in Europe, and in the Middle East Singtel in South East Asia, and Softbank in Japan, as well as SK telecom. So when combined we have access to $1 3 billion subscribers in 50 countries.

Hwan Seok Choi: And the founding members of the Global Telco AI Alliance are Deutsche Telekom in Europe, EN in the Middle East, Singtel in Southeast Asia, and SoftBank in Japan, as well as SK Telecom. So when combined, they have access to 1.3 billion subscribers in 15 years.

Okay.

Okay.

I don't know if you go too much on those to move when the deal was I missed the Benbow service.

Hwan Seok Choi: In addition to the five companies that participated, other telecom companies are also receiving attention by asking various questions. We are discussing the expansion of the membership while talking together.

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In addition to these five founding members we have been receiving a lot of interest and attention from various telecom companies around the world. So we're in the process of expanding the membership of the alliance and we will achieve economies of scale and global coverage by utilizing global telcos customers technology and service capable.

Hwan Seok Choi: In addition to these five founding members, we have been receiving a lot of interest and attention from various telecom companies around the world. So we're in the process of expanding the membership of the Alliance, and we will achieve economies of scale and global coverage by utilizing global telcos' customers, technology, and service capabilities.

Latif.

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Hwan Seok Choi: In terms of the structure of the AI pyramid strategy that we talked about, the first layer is AI infrastructure. Based on multinational customers and data, we plan to create a Telco-specific LLM and provide it to the participating members. Through this, we expect to have a common platform for the entire global Telco and increase the possibility of negotiating with big tech companies.

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So when we apply what I just mentioned to the AI pyramid strategy. The first layer is the AI infrastructure domain and there we plan to develop telco specific LLM based on multinational customers and data and offer it to our member companies and we believe that this will help build a common platform for <unk>.

Hwan Seok Choi: So when we apply what I just mentioned to the AI pyramid strategy, the first layer is the AI infrastructure domain, and there we plan to develop telco-specific LLM based on multinational customers and data and offer it to our member companies. We believe that this will help build a common platform for telcos and strengthen our negotiating power against big players.

Locals and strengthen our negotiating power against Big Tech companies.

Yeah.

Yeah.

Hwan Seok Choi: In addition to TELCOL-LM in the field of AI infrastructure, there is also AI-DC, an AI semiconductor. We are continuously accumulating this part and building up AI capacity. In addition to our company's own use, we are planning to provide solutions to GTA members and expand globally.

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In addition, a D C. NAIA semiconductors are part of the AI infrastructure domain, and we have been accumulating related capabilities will not only utilize these capabilities internally, but also offer them to the members of the G. T. A a so that we can expand our business globally.

Hwan Seok Choi: In addition, AIDC and AIA semiconductors are part of the AI infrastructure domain, and we have been accumulating related capabilities. We will not only utilize these capabilities internally but also offer them to the members of the GTAA so that we can expand our business globally.

Oh, Yeah Timothy soon.

Hwan Seok Choi: The second floor of the A.I. Pyramid is the A.I.X area. This is the T.B. area.

And then <unk> got to be you know what I mentioned.

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Hwan Seok Choi: stands for M&O, Media, and Enterprise. We are focusing on increasing productivity and innovating B.M. As Mr. Kim just explained, we are using A.I. for marketing and customer service. SK Telecom Co Ltd will share the Telco LRM used on the 1st floor with GTA members and spread it globally so that SK Telecom can create a global reference for Telco AIX.

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And the second layer of the pyramid strategy is the AI XO, which involves transforming beat T. B E. R. M N O media and enterprise businesses using AI as Louis mentioned previously we are planning to use AI for customer contact and marketing activities and Furthermore, we.

Hwan Seok Choi: And the second layer of the AI pyramid strategy is the AIX, which involves transforming TBE or M&O, media, and enterprise businesses using AI. As mentioned previously, we are planning to use AI for customer contact and marketing activities, and furthermore, we will share these use cases of telco-specific use cases of AI with members of the GTAA and expand them globally to build global references for telco AIX.

We will share. These use cases of telco specific use cases of AI with members of the G. T a and expand them globally to build global references were telco a X.

It's a matter of some global P. P for P. Sue It then.

Hwan Seok Choi: Lastly, the third floor is the global PAE service floor. On the first floor, there is a service provided by the GTE Corporation on a platform that is made up of telecoms in common. By expanding the domestic PAE, which was pioneered with ADAS, each country's telecom will be able to meet local characteristics.

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And finally.

Of the pyramid strategy.

Hwan Seok Choi: And finally, the top layer of the A.I. pyramid strategy is about developing global PAA. It refers to services provided by the GTAA on the common telecom platform that we will build for the first layer. The PAA service of ADOT will be expanded globally, and each telco will be able to localize PAA for their local users and present new customer experiences.

Developing global P. A it refers to services provided by the G. T. A a on the common telecom platform that we will build for their first layer and the P. A service of eight odd we've expanded globally and each total will be able to localize PAA for their local users and present, a new customer.

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How long this will translate into certainly.

Hwan Seok Choi: You also asked about additional investment in AI. Just like last year's entropic investment, we believe it is a principle to pursue an appropriate and reasonable investment in an area that is directly related to the direction of the AI company you are promoting and can create synergies. You also asked a question about the plans for AI investments. As was the case with our investment in Anthropiq last year, when we see opportunities that are very much in line with our AI strategy and where we can create synergies, we will make reasonable and various types of AI investments.

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Some of them are hungry children.

I'm Douglas you want to give you that.

You also asked a question about the plans for AI investments as was the case of our investment in <unk> last year, when we see opportunities.

<unk> are very much in line with our AI strategy, and where we can create synergies, we will make reasonable and various types of investments for AI.

But to do so.

Not for two more stimulus.

So that's all getting Tolinase hope I'm done.

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Hum.

Hwan Seok Choi: [inaudible] We will consider various aspects, including credit rating and resource size, and make the most careful decision.

They've come down you're talking about I'm talking about.

As far as specifics on what companies or how much investment or when we have not yet finalized on D. C tails, but we are going to continue to approach them from an enterprise or a company wide perspective, and we will be prudent and careful and making decisions regarding these investments are inconsistent.

Hwan Seok Choi: As for specifics on what companies or how much investment or when, we have not yet finalized these details, but we are going to continue to approach them from an enterprise or company-wide perspective. And we will be prudent and careful in making decisions regarding these investments in consideration of credibility and the size of resources available.

Moderation of credibility and the size of resources available. Thank you.

Tom what are the two minutes reshaping in D V commune today I don't want you made me that the next question will be presented by the injunction from DB financial investment.

And the only thing I talked to Columbia Timberland pretty subtle.

Tori.

When you are referring to.

Oh, the wings, obviously younger Bonnie.

With me, though.

And I think he put on board.

I have just two minutes well to one gain until you kind of hold on Halloween and took probably different than other companies.

Thanks, Tony.

Just kind of don't like about forget biotic Mong Duong.

You bet.

I would like to ask two questions when I look at the IR material I can see that among your services. Your roaming usage is constant your own device. So if there are any specific statistics that you can share with us regarding roaming I would appreciate that and I would also like to understand your outlook on.

On your roaming business. The second question has to do with your growing enterprise business. What was the actual results for the first quarter and what is your annual where full year outlook on your enterprise business. Thank you.

Yeah.

Uh huh.

So she got roaming services.

unknown: Thank you.

TD cool useful enterprises have qualified on day, one and took prices helps a lot of time doing that.

So forgive me that put on Bunzl, let me flip it seems to me some money to buy some video from yourself.

Thank you for your questions I would like to address your question on our roaming business and then the head of the enterprise business strategy Office will address your second question on the enterprise business. So now I'd like to comment on the actual results of the roaming service and outlook.

Eunjung Shin: The next question will be presented by Eunjung Shin from DV Financial Investments. Hello, I have two questions for you. I see that there are more and more roaming service users on IELTS.

Eunjung Shin: I'd like to know if you can share any future prospects with us. Secondly, I'd like to know about the enterprise that is growing well. Thirdly, I'd like to know about your prospects for the first quarter and for the next 24 years.

Eunjung Shin: I would like to ask you two questions. When I look at your IR material, I can see that, among your M&O services, your roaming usage is constantly on the rise. So, if there are any specific statistics that you can share with us regarding roaming, I would appreciate that. I would also like to understand your outlook on your roaming business. The second question has to do with your growing enterprise business. What was the actual result for the first quarter, and what is your annual or full-year outlook for your enterprise business?

unknown: First of all, I will answer questions about roaming services. Then, I will answer questions about enterprise business strategies. First of all, I will talk about the schedule and prospects for roaming services.

You ship some of them do happen Gilead truly notable young.

unknown: Thank you for your questions. I would like to address your question on our roaming business, and then the head of the Enterprise Business Strategy Office will address your second question on the enterprise business. So now, I'd like to comment on the actual results of the roaming service and its outlook.

You change when you want to be on tissue.

So didn't hear me, though.

There will be you Marilyn.

So it will be nice to me, though.

In 2023, the outbound travel was only about 70% of the level of 2019. However, the roaming usage increased by one five times.

unknown: In the case of 2023, if you look at the departure rate, it is 70% compared to 2019. However, the usage rate of ROMI increased by 1.5 times compared to 2019.

unknown: In 2023, outbound travel will be only about 70% of the level of 2019, but roaming usage will increase by 1.5 times.

You don't care, what kind of time I'm going to you've got some moment, we should put into how do you promote Sean.

unknown: The results show that our first roaming 50% discount promotion, 50% discount for young people, increasing the amount of data provided as per the existing demand, family roaming, etc. Marketing that reduces the burden of customers' roaming demand. I think it was important that the customer base was expanded through some discriminatory services such as direct calls used by more than 75% of customers on roaming charges.

Chung, which puts into Hudson she's doing the open compared with Pizza hut.

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Coupon you distinguish it yet there wasn't a company though.

We believe that this roaming usage increase was mainly thanks to the expansion of the customers. Thanks to marketing campaigns to reduce the financial burden for customers, including a 50% off promotion for the first time roaming users and 50% off for the youth and more data provision for the same price plans.

unknown: We believe that this roaming usage increase was mainly thanks to the expansion of the customers, thanks to marketing campaigns to reduce the financial burden for customers, including 50% off promotion for the first-time roaming users and 50% off for the youth, and more data provision for the same price plans, as well as differentiated services such as the

As long as differentiated services, such as the borrow cool a plan that more than 50 more than 75% of the roaming price plan customers are using.

Oh God I won't go through them.

Chinese plenty of whatever Joann Horne argue no money at home at all.

unknown: The brighter the future is, in the case of this year, we expect that it will be the first year in five years since the Corona pandemic to see a return to the level of 2019.

Who knows.

Hey, Bob.

And he got a request for tomorrow, we figure it out.

The outlook for our roaming business is pretty bright because 'twenty 'twenty four is expected to be the first year since the pandemic went outbound travel will reach the 2019 level.

unknown: The outlook for the roaming business is pretty bright because 2024 is expected to be the first year since the pandemic when outbound travel will reach 2019.

Oh, I don't know Neil shipyard, alumina coupon, which push it too hard in promotion of young at all.

unknown: Due to the promotion of a 50% discount on the December roaming coupons, the number of roaming users in the first quarter of 2024 increased by 1.6 times compared to the same period in 2019 and the same period in the previous year. It is estimated that the increase in the number of roaming users will lead to an increase in the usage rate of 0,00 customers who receive a 50% discount on family roaming and a permanent 50% discount on family roaming.

Thank you Jonathan.

You changed you're putting.

Moving on.

Me too.

So we'll do some bets and.

Go ahead.

She doesn't mean, you Ingrid sheesh Posties hurting you on in hydro moving wall hung jewelry, she put into hunting at picking up on them.

You're welcome Jay who can't get roomy Gogo human routes.

Oh, you could go through.

So what we see though.

Thanks to the family roaming at 50% off promotion for December the number of roaming users in the first quarter grew one six times year over year and compare it to the first quarter of 2019. So this year roaming usage growth is expected to be driven by the family room service utilized by more than 70% of house.

unknown: And thanks to the family roaming and 50% off promotion for December, the number of roaming users in the first quarter grew 1.6 times year over year and compared to the first quarter of 2019. So this year, roaming usage growth is expected to be driven by the family roaming service utilized by more than 70% of households that use roaming, as well as the increased roaming usage by youth zero plan subscribers that enjoy 50% off roaming at all.

So it's I use roaming as well as increased roaming usage by youth zero plan subscribers that enjoy 50% off for roaming at all times.

G you.

You talked about because of single window Katoomba Amun.

No problem G E.

unknown: In the fourth quarter of the 23rd year, 280,000 people... In the first quarter of 2013, 410,000 users... 46% increase. Due to the high level of customer satisfaction, after the launch in June of 2013, the cumulative number of users... The total number of participants was 970,000, making it SK Telecom's representative roaming product.

Cool.

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Yes, hi.

And we're all human just you can just.

How should we you put into it.

<expletive> Weil Dupont.

Okay.

So it should be possible.

Tricia you yeah.

We took a human touch.

We shipped 2 million interest and as always its always keep looking at April what means from tomorrow today.

How do you make them.

In particular, the family of roaming subscribers are constantly under rise from 280000 in the first quarter of 2023.

unknown: In particular, the family roaming subscribers are constantly on the rise, from 280,000 in the first quarter of 2023 in the fourth quarter of 2023 to 410,000 in the first quarter of 2024, so up 46% from queue on queue. And with a high level of customer satisfaction, the family roaming service has become a major SK Telecom roaming product with a cumulative number of users standing at 970,000 since it was launched in June.

In the fourth quarter of 2023 to 410000 in the first quarter of 2024, so up 46% Q on Q and with a high level of customer satisfaction. The Sanya roaming service has become a major SK telecom bromine product with the accumulative number of users spending eight nine.

[noise] hundred 70000 since it was launched in June 2023.

Only at all.

You are talking about them at all.

Tell me what was seen in our promotional and well, let's get telecom manage hertzog into amines on.

Sure so.

unknown: and SK Telecom Co Ltd. So, going forward...

Okay sure.

Oh sure.

Give me though.

And so going forward, we are planning to offer promotions for first time users to experience roaming service without much burden and launch differentiated roaming products to a in order to continue to attract new customers. Thank you.

unknown: So, going forward, we are planning to offer promotions for first-time users to experience the roaming service without much burden and launch differentiated roaming products in order to continue to attract new customers. Thank you.

Yes.

Enterprise, hopefully, you'll come down, particularly the kimono sheen and top as whole people won't be so much longer.

Jaejoon Bae: Hello, I am Jaejoon Bae, in charge of Enterprise business strategy. I would like to talk about the 1st quarter results for Enterprise and future strategies.

You bet.

I am <unk> head of the enterprise business strategy Officer I'd like to address your question on our enterprise business.

Pae Jae-joon: I'm Pae Jae-joon, head of the Enterprise Business Strategy Office. I'd like to address your question about our enterprise business.

Good I'm, sorry enterprises, all blend it doesn't oklahoma or something close to it and got it.

Pae Jae-joon: The enterprise business in the first quarter of 2014 saw an increase in the number of data centers, and the increase in the number of cloud users has led to a YY9% growth of 415.4 billion won in sales.

I'll get true touch on what you saw one little while your wife wasn't just wanted to I wanted to try something else.

In the first quarter enterprise revenue posted $415 4 billion, one up 9% year over year. Thanks to the increase in data center utilization rates and cloud contracts.

Pae Jae-joon: In the first quarter, enterprise revenue posted 415.4 billion won, up 9% year-over-year, thanks to an increase in data center utilization rates.

It doesn't cause problems single center quite onerous on us when we bought them at all.

Pae Jae-joon: The data center business continues to grow by quarter based on the increase in the operating rate of the new center. Accordingly, the 24-year data center... The growth rate is expected to be similar to the previous year.

One is on each of those categories yet.

Gunn theaters and temperature do so knowing Washington's peninsula junkies.

The data center business continues to grow on a quarter over quarter basis on the back of increased utilization as new data centers. So the annual data center revenue for 'twenty 'twenty four is expected to record a similar growth rate as last year.

Pae Jae-joon: The data center business continues to grow on a quarter-over-quarter basis on the back of increased utilization of new data centers. Thus, annual data center revenue for 2024 is expected to record a similar growth rate as last year.

Well each one sometimes don't come cheap.

Even if you go back to your someone Brooks O'neil Mickey D data centers.

Pae Jae-joon: In order to double its capacity to more than 200MW by 2030 and to become the number one data center business in Korea, we are working on establishing a new center in the metropolitan area.

So I'm wondering if consumables shingles in total liberty.

And we're also in the process of establishing new data centers in the Seoul Metropolitan area to become curious number one datacenter provider by doubling our capacity to more than 200 megawatts by 2030.

Pae Jae-joon: And we're also in the process of establishing new data centers in the Seoul metropolitan area to become Korea's number one data center provider by doubling our capacity to more than 200 megawatts by 2025.

Hello, Pablo months old church bits of outflow and ignored the sewage can be keep on my own.

Pae Jae-joon: First of all, the cloud business is based on the LA cloud demand brought in by Chet GPT and AI infrastructure as well as AI cloud business expansion.

Hum.

Okay.

And the cloud business will focus on growing cloud business and expanding AI powered business based on higher demand for AI cloud brought on by the popularity of Chachi P T.

Pae Jae-joon: The cloud business will focus on growing the multi-cloud business and expanding the AI cloud business based on higher demand for AI cloud services brought on by the popularity of chat.

Oh, yes.

Good afternoon.

Pae Jae-joon: In the existing MSP sector, we are planning to launch a multi-cloud and hybrid-based business with SK Telecom Co Ltd's cost-reducing technology. Our goal is to reach a full-scale scale-up with the goal of becoming the center of a big account.

Multi cloud.

This is all public snarky with key SKT money pure intrusive clunky sort of Honeywell.

Thank you Miss you May ask what doesn't go.

Go to inculcate gets cleared up somewhat.

And for MSP, we will continue to support our transition to a multi cloud and we will utilize our own cost optimization technology to gain contracts from big accounts to achieve meaningful scale up.

Pae Jae-joon: And for MSPs, we will continue to support a transition to multi-cloud, and we will utilize our own cost optimization technology to gain contracts from big accounts to achieve meaningful scale-up.

Enterprise, it's all doing well because of the IPC Shizzle AI consequent to the point, where you don't know when there is contact center.

Pae Jae-joon: Enterprise AI business is increasing the number of AI contact centers in the existing IPCC, and it is encouraging the growth of this kind of business.

Looking at someone's home.

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The enterprise AI business growth has been driven by the increase of contracts for a ICC, which is that transition from a traditional IPCC.

Pae Jae-joon: The enterprise AI business growth has been driven by increased contracts for AICC, which is a transition from the traditional IPCC.

I won't kill for as long as long you wondering if we'll go quick and then there's hundreds of years I'll just sum game on order, which you went on AI.

Pae Jae-joon: In order to be a pioneer in AI utilization in the future business market, AI simultaneous translation solution PressTalker, which supports 13 languages, SK Telecom Co Ltd, SKT, AICars, and AICopywriter, which produces advertising documents automatically, have released new products.

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So on AIA copulate with them. She goes I'm going to show you for me, though.

And we are also trying to respond to preemptively to the upcoming trend where AI is utilized for b to b market. So we recently launched new products, including trends talker and AI simultaneous interpretation solution that supports 13 languages.

Pae Jae-joon: And we are also trying to respond preemptively to the upcoming trend where AI is utilized for the B2B market. So we recently launched new products including TransTalker, an AI simultaneous interpretation solution that supports 13 languages, SK Telecom AI CCAS, a subscription-based AI contact center service, and AI copywriter that can generate advertising copies.

K Telecom AIC casts a subscription based AI contact center service and a copywriter that can generate advertising copy.

I wanted to know what you're doing or are you truly coupon to chisel talked a little queued up with Taco cool complementary Shaw, who was killed one touch on production or can you give me though.

Pae Jae-joon: In the future, we would like to launch various products based on AI to actively capture opportunities, launch products, and achieve scale.

So we are planning to continue to identify new opportunities and capture them and scale up our business by actively targeting expected AI demands in the b to B market.

Pae Jae-joon: So we are planning to continue to identify new opportunities and capture them and scale up our business by actively targeting expected AEI demands in the B2B market.

Because when you go through.

Can you just talk about your components quarter much total August.

unknown: This concludes the conference call for the 1st quarter results. If you have any additional questions, please feel free to contact us. Thank you.

Sure another top 20 drugs, which I'll kick one tradeoff what lessons on dividend.

It doesn't depend on Victoria I ask because you go to when you're just thinking about them is that comes out of it.

Now this concludes the earnings conference call for the first quarter of 2024, if you need further explanations or have additional questions. Please contact IR anytime. Thank you.

unknown: Now this concludes the earnings conference call for the first quarter of 2024. If you need further explanations or have additional questions, please contact IR at any time. Thank you.