Q4 2024 SK Telecom Co Ltd Earnings Call
Jim Jong arrow of SK Telecom, let us begin the earnings conference call for the fourth quarter and fiscal year 'twenty 'twenty. Four today, we will first deliver a presentation on the financial and business highlights followed by a Q&A session.
Speaker Change: Please note that all forward looking statements are subject to change depending on various factors such as market and management situations. Let me now present our CFO.
Speaker Change: Carter's Kid Telecom share Pokemon go.
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Carolina: Hello Carolina, this heater to them either.
Speaker Change: Good afternoon. This is young suk Kaman CFO of SK Telecom. It is my first time to greet you in 2025 I'd like to wish you a happy new year, and good health and happiness in the new year.
Speaker Change: Shannon I needed to keep them on the street.
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Bonnie: Thank you Bonnie home with regards to data Couture Moodle school.
Speaker Change: Completely right, whether you want to put anybody doing on Honeywell.
Speaker Change: For SK Telecom 2024 was all about operational improvements and artificial intelligence, while operational improvement efforts further strengthened our competitiveness in the telecom business. The AI pyramid strategy guided us and refining business models and establishing execution systems.
To lay the foundation to become an AI company.
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Speaker Change: We focused on operational improvements not just to reduce costs, but also to enhance our overall portfolio processes and culture to strengthen the company's business fundamentals. Thanks to these efforts the consolidated operating profit grew 4% year over year and the op margin exceeded 10%.
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Speaker Change: Let me now report on the consolidated financial results for 2024.
Speaker Change: And then Debbie Jones Cooper's interesting gone chip talk with tons, how big you want to show Nice to me, though.
Speaker Change: Consolidated revenue reported 17 trillion $940 6 billion won up one 9% year over year.
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Speaker Change: With sustained growth in all business areas, including fixed and mobile enterprise N. A I R. Consolidated revenue has continued the upward trend since the spin off in 2020 one.
Speaker Change: And then O business saw a slight slowdown in its top line growth, but customer friendly roaming services contributed to <unk> revenue growth, while a significant growth in data center and B to B business, such as cloud and AI T. C contributed to consolidated revenue growth.
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Speaker Change: Operating income posted one trillion $823 4 billion won.
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Speaker Change: Throughout the year, we successfully reduced major expenses, such as marketing and G&A costs through cost efficiency measures to continue the trend we are utilizing AI to further drive cost efficiency in key business areas and processes.
Speaker Change: Last year, we also rebalanced, our business portfolio by phasing out low profit businesses and increasing the share of high profit ones, thereby laying the foundation for sustainable growth in the future not just short term operating income growth.
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Speaker Change: Net income posted one trillion $438 8 billion, one up 25, 6% year over year, thanks to the business portfolio restructuring and asset efficiency in huntsman as part of the operational improvements.
Speaker Change: Commodore is unclear there by somebody gives me though.
Speaker Change: Next let me report on AI related highlights.
Speaker Change: The Chinese hang on 100 to one SK telecom in Ireland.
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Speaker Change: So you have to consider cutting it cool <unk> Paul could you go to Kuwait, It amply Nashville populace integral pick do you see it.
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Speaker Change: Could you put that in and then I'm Don Kim you don't do anything beyond escape T. GPU is just obvious literature shows to me though.
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John: I'm, John and Bruce.
Can you give me though.
John: In 2020 for SK telecom strengthened its global AI partnerships through equity investments in diverse AI related domains, specifically, we made strategic investments in London, and Penguin solutions to utilize their expertise in a data center business.
John: Furthermore, we're closely collaborating with global AI Tech companies, such as Perplexity anthropic for a dot Esther and telco L. L M.
John: Last month, we launched S. K T GPU as a service that we have been preparing for a year with Lambda. This year, we will carry out AI business activities in earnest to achieve meaningful growth in AI related revenue.
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John: Suddenly you can learn their children and young babies Cooper's into some July of cool.
John: So that what you're talking to in Russia, where higher you could chip Clark Chief credit, where you guys have some genetic cause of Jorge it was obvious to me though.
John: In this regard we have changed the classification of AI related revenue the entire business of SK Telecom is largely divided into two categories Telecom business and AI business, which includes a X a D. C. A I got a dot N G. P. A.
John: Previously we showed figures on cloud and data center business, but starting from this year, we will announce quarterly sales of AI X and a D C, which are AI related b to B business to provide you with a more comprehensive view of AI business growth in.
John: In 2020 for AI related revenue grew 19% year over year.
John: Going forward, we will continue to accelerate AI business growth through the construction of AI infrastructure, a super highway and monetization efforts.
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Brian Shea: I'm Gonna distributor can get in East Pony, you, Brian Shea CFO angle.
Brian Shea: Somebody is obviously mobility Samuel from Banca people get so pitiful silicon shall use only me though.
Brian Shea: Another pillar of our AI business is P. A a which is now organized into two trucks eight odd for the domestic market and Esther for global customers.
Brian Shea: After an overhaul in August last year, <unk> was able to achieve a 160% growth year over year in total users. Thanks to the application of AI to phone calls and multi LLM agent features.
Brian Shea: Having been unveiled in November last year after presented a comprehensive daily management service model at CES 2025, and will launch a beta service in the first half of the year in the U S.
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Speaker Change: Finally, let me turn to shareholder return for 2024 and earnings guidance for 2025.
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Speaker Change: So I'm just curious when you look at school children at home there is only me though.
Speaker Change: The D. P. S for 'twenty 'twenty four was determined by the board at 3541, including the quarterly dividend of 2000 and 491. It was already paid out it is subject to the approval at the annual general meeting of shareholders in March.
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Speaker Change: Our annual consolidated revenue target for 2025 is 17.8 trillion won it represents approximately 1% growth year over year on a normalized basis after removing the impact of sales of certain subsidiaries late last year. We also aim to achieve a Y O y growth in ARPA.
Speaker Change: We're waiting income through continuous operational improvements.
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Speaker Change: This year, we anticipate significant economic industrial and political changes both in Korea and globally, we will strengthen our fundamental competitiveness to cope with high uncertainty and pioneer the AI era through challenges and innovations, thereby further enhancing our corporate value.
Speaker Change: This is how I noticed your opening she looks again from your attitude protected them either comes on me, though.
Speaker Change: We look forward to your continued support and encouragement. Thank you.
Speaker Change: Vikram chicken Burrito Q&A session Theres still cause it.
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Speaker Change: Now Q&A session will begin please press star one that is store and number one if you have any questions.
Speaker Change: <unk> will be taken according to the order you have pressed the number star one.
Speaker Change: For cancellation. Please press star two that is store and number two on your phone.
Tom: Tom what are two minutes disappointed.
Speaker Change: And Clinique Kim who.
Speaker Change: It didn't matter.
The first question will be provided by Kim Hoi Jae from <unk> Securities. Please go ahead with your question.
Speaker Change: Yes.
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Speaker Change: Good morning, gentlemen.
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Speaker Change: Good evening.
Speaker Change: The one thing too Jonathan like that at all.
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Tom Roberts: Thank you Tom Roberts with China.
Speaker Change: Thank you.
Speaker Change: Okay.
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Speaker Change: So does that mean you could have them again.
Speaker Change: Again, that's all Jonathan Morgan.
Speaker Change: Jacob.
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Speaker Change: Thank you mayor Jae from <unk> Securities I would like to ask two questions first of all in your opening speech you already talked about your plans for AI related businesses, but I'd like to understand what would be the key focus areas for SK telecom and conducting AI business and if you can provide us with some guidance on AI related.
Speaker Change: Revenue outlook, we will appreciate that.
Speaker Change: My second question is concerned with shareholder return there were some concerns that SK telecoms dividend per share may decline. However, you have decided to go ahead with a dps of 3541, which is similar to which is the same as the previous year. So I'd like to understand the background behind this decision and all.
Speaker Change: So if you can add some color on what we can expect for 2020 five for shareholder return, including any plans on share buybacks I would appreciate that thank you.
Speaker Change: Yeah, and USA SK telecom share Pokebank for me, though she won't comes on Liza One judge Freeman's machine.
Speaker Change: Did they buy somebody gets me though.
Speaker Change: I'm CFO Kim young some thank you for your questions I first like to talk about AI related revenue.
Speaker Change: SK telecom is not anybody here to machine glad you're able to chew on in charters.
Speaker Change: To a degree.
Speaker Change: Okay.
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Speaker Change: Ptv Young again, sorry, eight o'clock G. P E P.
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Speaker Change: At the end of last year, SK Telecom restructured the company into a seven business units based on two pillars of telecom and AI and the AI business includes eight odd N. G. P. A a for a b to C business and I extend a I D C for B to B business.
Speaker Change: I'm going to ask you named it should do and yeah sure a J.
Speaker Change: She seems to be a one joke I share that with me though.
Speaker Change: You asked the question about AI related revenue and it is being materialized first of all in our B to B business, such as E X and a D C.
Speaker Change: Yeah.
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Michelle: Michelle whenever it should Oh sure nice to me, though.
Michelle: Oh, yes, she put into some kind of coastal I'll tell you didn't go with me though.
Speaker Change: The a X business unit includes not only the AI cloud business, but also other diapers AIP to be products, such as a vision and a T C and in this category. We posted 193 billion one of revenue last year and it is expected to grow about 30% this year.
Michelle: Yeah, It should help with you Tony.
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Speaker Change: No our revenue from a D. C. In 2024, it was $397 4 billion, one up 13% year over year. It is mostly revenue coming from our conventional data center business operation, but we recently launched GPU as a service and partnership with Lambda and so we will.
Speaker Change: Pursue this business in earnest this year.
Speaker Change: Yeah.
Speaker Change: Groups, Oh cool the global player you are you to considering coming up to get to.
Speaker Change: Which gets only yeah. It is.
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Speaker Change: What are you, hoping that you're doing.
Speaker Change: So is that just sort of coming down closer to what are you interested in what we can do.
Speaker Change: And so we plan to conduct a D C business more actively by establishing a cooperation system with global players as well as SK group affiliates, well, we see a growing demand for AI data centers in the market. So we believe that the a D. C revenue can grow more significantly and we.
Speaker Change: About a double digit growth rate for a D C business this year.
Speaker Change: Patricia you want me to say.
Speaker Change: Am I doing the orders from dog, which is high.
Mike: Hey, Mike how you're doing in Utah committed pure PAA for visitors have you made them on Adas, who don't want to talk quite a bit you should she Montgomery Harper who.
Speaker Change: Uh huh.
Speaker Change: New Moon, Ohio, who don't want sweep, obviously awesome dream it Uh huh.
Speaker Change: Nick We don't go there to Bonnie you do originals is of course lucky to have with me though.
Speaker Change: And this year, we will also developed more develop more concrete business models for or a b to C business eight on has established itself as a major personal.
Speaker Change: My agent service in Korea, and with the total users of 827 million. We're currently working on expanding services to offer more diverse features and we plan to introduce a subscription based paid service with it within this year.
Speaker Change: You talked about some different tongue, sorry, yeah. Yeah, you should eat you any answers you know sometimes much read through.
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Speaker Change: What are your thoughts on doing Yoga school.
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Speaker Change: Many of them.
Speaker Change: To sum it all we will strive to grow our AI business revenue in a meaningful manner and for this we will strengthen our execution capabilities in all AI related business areas to produce meaningful results. Thank you.
Speaker Change: You also should you hung on London.
Speaker Change: Beyond that it gets me though.
Speaker Change: Let me now comment on our shareholder return policy.
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Speaker Change: And then do it we've done some tunnel Bedfordshire wouldn't either.
Speaker Change: So regarding our dividend the board determined that the 'twenty 'twenty four at year end D. P. S. A would be 1051, which is as you know at the same as what we had in 2023 and the annual G. P. S. It's the same as the prior year with which is 3541.
Speaker Change: You bought and paid for.
Speaker Change: So share photos of modern conveniences from Utah.
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Speaker Change: Perhaps you don't kill your homegrown cortisol she's looking at for QTS in Tucson.
Speaker Change: Because Joe English me, though.
Speaker Change: As the CFO I had to put a lot of thought before determining this year's dividend and I understand that's on the shoulders expected an increase in dividend payout, but we decided to maintain the minimum dividend level expected by the market in consideration of the uncertain business environment.
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Peter: Peter ones, how long to me, though.
Speaker Change: Our earnings improved in 2024, but in the context of rapidly changing economic and political circumstances, both at home and abroad, we need to secure resources for investments to stay in the competition for AI and funds secured through operational improvements in business performance will be used.
Speaker Change: To make investments for growth in AI D C and other businesses and this year, we also need resources to acquire equity of SK broadband.
Speaker Change: I'm sorry, not in Michigan This unit to $200. Okay last for me the.
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Speaker Change: Going forward in 2025, what I can say is that our shareholder return is still at the highest level in the industry and we anticipate a lot of challenges in terms of what politics and economy. So we will continue to pursue operational improvements, including the liquidation of non core assets and pursue a better.
Speaker Change: Improvements and this is what we're going to reflect in our shareholder return.
Speaker Change: You talked about purity somogyi, a Chinese shipborne, none at all yeah someone's on pillar two.
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Speaker Change: She turned out in terms of introduce honeymoon curves look like I think I'll give me though.
Speaker Change: To achieve these objectives, we will continue to make investments for growth in AI areas and we will have to continue to make relevant investments. However at the same time, we're committed to a stable shareholder return.
Speaker Change: Should you hung up on the Chicago alone isn't known.
Speaker Change: So I'm going to pare down movement in terms of what are your children.
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Speaker Change: She didn't know Peru, entrees, Amy though.
Speaker Change: Though.
Speaker Change: And as for the methods of shareholder return our priority is to maintain a stable trend of cash dividend payout and the treasury share purchase and cancellation can still be a meaningful option. When the stock is undervalued. However for shareholder share buyback. We believe it is effective to announce a medium term plan rather than just cash.
Speaker Change: Sorry, it out as a one off event, we will consider a share buyback by considering various factors such as the stock price trend and market views in a more comprehensive manner.
Speaker Change: Commodore two minutes as you bring in Vancouver are medically ease on the meter.
Speaker Change: The following question will be presented by Ethan Zhang from Bank of America.
Speaker Change: Please go ahead with your question.
Speaker Change: Yeah, Nancy Opencable biomedical your son joined neither children get yourself, a consultant to me that the children Jenny Yeah. He told by since using Enzo a duffel Jeremy.
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Speaker Change: John This is al Capone, yeah, it won't take off well pretty good Crystal ball you don't I guess of a bonus talk how are you doing his all boy Jacob presentations, which again I'll come back since you're showing that the G&A is how long is your window potential by some attrition that comes out that he calls me that cause people to want to cheer them on that is probably getting some buckets you don't look at the palms, it's all going to win them back.
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Speaker Change: But he was should go with anthem for pitch them from Gordon Monday, Okay, you're doing missile, how we'll tell you about kittenger levels could take to help get Queen intrusion comes out did you guys see that.
Speaker Change: I'm <unk> from Bank of America. Thank you for this opportunity. My first question is related to your AI business, you mentioned about possibly introducing a subscription model for <unk> within this year and if you can provide us with more details will be equal to or better on.
Speaker Change: And how you're going to monetize or using your AI business and also you've recently launched Esther for the global audience and you mentioned it in your opening speech. So if you if there's any more detail than you can provide us with a it will be great. My second question has to do with the marketing situation in the fourth quarter.
Speaker Change: I can see that your marketing cost has gone down and I like to understand any update on the marketing work.
Speaker Change: The market competition situation and these handset subsidy ban was lifted in December last year, So I'd like to better understand how your marketing strategy will unfold in the near future.
Speaker Change: Yeah, Truman comes on and you're done.
Speaker Change: Ones that he does every day so yeah as hoped.
Speaker Change: Our political is 30 days and in the east.
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Speaker Change: Top gun did it gives me the useful marketing beyond question isn't it.
Speaker Change: So that seems like you thought that it was obvious to me though.
Speaker Change: Thank you for your question. So regarding your question on eight that the head of AI business strategy will address that and for Esther the head of AI growth strategy will address that question and then the team head of marketing strategy will comment on your question regarding our marketing expenses.
Speaker Change: Yeah. It helps on your phone was Yung Kim Junior me, though.
Speaker Change: So this is Kim Chi, who and head of AI business strategy.
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Speaker Change: So as you know eight odd is all curious number one personal agent AI agent service with the largest number of customers.
Speaker Change: Our customer base and for the past year, we focused on advancing eight odd as a primary agent and we utilized divergence strategy for external expansion.
Speaker Change: So you do all gig it is it's almost a moot if you could tell me.
Speaker Change: Oh, So you cannot in Asia typically it is.
Speaker Change: Yeah.
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And then either so now you're down below.
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Peter: How can we use them either.
Peter: Before I comment on our plans for monetization I like to elaborate more on this initiative and the kinds of approaches were taking we continue to advance eight on it as a primary agent. So that we can offer eight that phone service, which is an improved version of the existing one.
Peter: <unk> services, and we have been mobilizing our capabilities internally.
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Peter: C N N C. And then we'll get going on that chicken was commenting uncle Shannon and she told me they were told US and they would hopefully school you don't go when did it in Hong Kong Samsung E.
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Speaker Change: So for the evolution of this agent we focus on making the agent not only engaging in some simple conversation or do search for users, but also be able to complete requested tasks and we will continue to test these functions to improve the user experience and this is our priority.
Speaker Change: Uh huh, so basically when he was willing to personally you know your agent to let's say and just don't just song Egypt the monkey.
Speaker Change: You keep on inkjet hydrogens, how long it'll depend on how quick pool to do onboard data of the G. SIB was home sometimes cumulative so we're gonna chocolate on Orange, Ecuador comfortably doing home theater, one Joe I mean, and how can we.
Speaker Change: Neither.
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Speaker Change: S. Aegon has already established itself as a leading personal AI agent through service improvements last year. We believe that we have a strong foundation for paid for the introduction of Peach services no specific decisions have been made yet on how we're going to go about it but or a first consideration will be.
Speaker Change: Utilizing the subscription model.
Speaker Change: You can count on me rather than G concerta.
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Speaker Change: A couple of cool things are aimed at possibly stood up with bush. He knows it really seen then therefore juergen you say, Dan you're bundling pardon me, so I'm kind of something you Unpick Kashi.
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Speaker Change: You don't move until it is on the engineered components, how long ago natomas off each other and in Hungary.
Speaker Change: 'twenty two.
Speaker Change: So we're working on offering our services for daily task management, as well as search and combining it with other telecom features. So we're all working on our plans for specific services and we're also considering various bundled offerings, but two in order to generate synergies.
Speaker Change: As with other services that SK telecom is offering them. So we're working on all of these plans and when we have more details to share we will make sure to communicate them with the market.
Speaker Change: Okay.
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Speaker Change: <unk> plus subsidiary Geneva was similar to Q1.
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Jesse: This is Jesse <unk> head of the AI growth strategy for our global business of personal AI agent, we unveiled Esther on agent take AI service at the eight S. K a summit last year and currently are close, but us or better testing is ongoing and this year in Jan.
Jesse: During <unk>, we showcased the service demonstration at CES 2025.
Jesse: As Tun in cause home try it too many times.
Jesse: You'll need to take them on in ground kitchenaid soda as one entity.
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Speaker Change: Jack will expand on in Asia to you Yeah, you saw the citizen she has agreed to meet up.
Speaker Change: Unlike other AI services that simply respond to use their problems Asher aims to be on H N take AI that can not only respond to use our pumps, but also execute necessary Danny tasks through the communication with their users.
Speaker Change: It comes on in Hungary Junior Big hopes.
Speaker Change: Thailand is hung rule opened a subsidy K Cup with smeal.
Speaker Change: Chunk or use them critical you didn't tell me I'm, an investor appeal us federal return in a blueprint critical yoga and you tell me the answer Tom Yeah.
So Donald Shannon, we kind of prep cartoon.
Speaker Change: Jim use case, it can actually tell you Charlie she didn't need to get caught you a longer term thing you're calling on partner some point, okay rigging meter.
Speaker Change: And we plan to start an open beta service them in the U S for U S customers in the first half of the year, which will include some of the key use cases, such as creating a mill, perhaps and also working on the weekend, perhaps as well as managing all these schedules and executing necessary actions.
Speaker Change: You don't do it all public Citigroup, Peter with his all time on global Tech or put Thomasville category Auto Tupperware Hustle called Hungary's Smeal agent Tigger, Yeah, Yeah, how do we get open global telco to remodel Taco plug into their tongue Ingersoll children Dream meter.
Speaker Change: So for this we're accelerating collaboration with diverse tick partners such as Perplexity and we're also at the same time actively pursuing partnerships with global telecom companies, who can benefit from H N take AI services.
Speaker Change: Object Chongqing Dolby surround she moved from John and I'm, giving it to them when they go to Joe game P. M. Do vary by some degree again and should you use hungering gentlemen, yeah, just to give out a meal. So obviously it can be go junior consumer got you got you talked about your human comes August neither.
Speaker Change: As we are still preparing for an official launch please understand that it is too early to discuss any specific business models, but I'd like to ask for your continued interest in this process of developing and launching the service. Thank you.
Marketing introductions young Chung with I.
Speaker Change: As you put them all on top of pitching a kitchen in New York.
Speaker Change: You don't give me humility petroleum's hard pointed there on all of them pulled over how you're supposed to meet demand.
Speaker Change: Merger, what's how do you think you're doing anything at all salaries unbundling as Harlan I know for me, though.
Speaker Change: This is Samsung from the marketing strategy team after the abolishment of handset subsidy ban at the end of 'twenty 'twenty four there were some news reports on how certain sales offices offered huge subsidies, but this was a limited phenomenon, meaning to get rid of subsidy or get rid of handset inventory.
Speaker Change: Yeah.
Speaker Change: Congestion song on pumping probably point that she's got them all without a meter.
Speaker Change: My mother trigger Kahveci looks something like Oh, Okay go ahead I'm sorry.
Speaker Change: You don't you don't you met that are sometimes you can show them during the war <expletive> I'm, sorry, as a total rather than selling them at all.
Speaker Change: The current market situation is very different from when the subsidy ban was introduced as the unit shipment cost of handsets can sneak continues to increase and the handset replacement cycle of customers continues to lengthen we've seen more sustained stability in the market and the size of the market itself has been reduced.
Speaker Change: She knows how long do you have or tranches stung junior quieter than on getting more for Neil.
Speaker Change: So long run I'm, Tony Shipyard came out and then as you get that off each other and are willing to do something and you don't understand how would you look at the immediate help a couple of questions.
Speaker Change: In the fourth quarter, there were no signs of over competition in the market and the market is likely to wait for a new enforcement decree of the Korea Communications' Commission to come up with response strategies, we will continue to monitor the market situation closely.
Speaker Change: All product lines and in product care, you know they won't have a rather than gotcha. Okay go get you want to buy them at all showing momentum where I'm wondering about what can be done.
Speaker Change: Going forward, we will continue to create a momentum in the market to offer a more personalized and differentiated value to our customers.
Tom Roberts: Tom literally two minutes as you put in.
Speaker Change: Medici and Connie Chung T shouldn't be done.
Speaker Change: The following question will be presented by tons you Sue for marriage Securities. Please go ahead with your question.
Speaker Change: Hi.
Speaker Change: Hum.
Speaker Change: Yes.
Speaker Change: You bet.
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Speaker Change: Yes.
Speaker Change: Yeah.
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Speaker Change: Neil.
Speaker Change: So much more than that just because somebody call.
Speaker Change: She can walk through that in detail.
Speaker Change: Probably a little more cushion god.
Speaker Change: Thank you.
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Speaker Change: No we didnt go out and they.
Speaker Change: Can you just hang in there as well.
Speaker Change: In Georgia and in China.
Speaker Change: Allison J O, but are you going to each one.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: They tend to loosen up.
Speaker Change: This is Sean G suite from Merit Securities I would like to ask a question on the impact of operation improvements on your earnings. So how much was the impact of coming from the old way on in 2024, and what is your outlook on the impact of your operational improvement initiative in 2025, and if you can.
Speaker Change: If possible please provide us with a guidance on 2025 Capex plan.
Speaker Change: Yeah, Jim who comes on without tapping the reads to me that.
Speaker Change: Thank you for the question.
Speaker Change: Uh huh, but they wanted to do it so I'm going to a little later.
Speaker Change: Homeless.
Speaker Change: Children in tuition or component.
Speaker Change: We don't talk to them doing their work have aligned themselves.
Speaker Change: Oh, Yeah, I don't know nothing from them to take people keep on it but I cannot give you an email.
Speaker Change: We have been implementing operational improvements across the company to ultimately strengthen our fundamental competitiveness of the telecom business and also secure basis for AI related growth investments.
Speaker Change: Which is again why are you punishing Ronan Pixie telecom because I know you kept it.
Speaker Change: Uh Huh ph seems Hassan because I don't care what was seen in day one.
Speaker Change: It sounds like Jean Bua them, So we're going to do and keep on yugo.
Speaker Change: Oh I'm sorry, it's your cause she hopefully a lot more in Capex, and then kogi check them out and they took distinguishing moodle Oh, yeah, it's unfair.
Speaker Change: No no no.
Speaker Change: And I'm, telling you I don't wish it would also put for the portfolio to take put on them.
Speaker Change: Yeah, Hey, Washington, Utah.
Speaker Change: Operational improvements can be achieved mainly through opex savings capex efficiency and also disposal of noncore assets and in addition to company wide cost saving efforts. We also shifted our capex paradigm to focus on network quality improvement, which our customers can enjoy as cat.
Speaker Change: Next is our major cash flow cash outflow category, while at the same time restructuring the business portfolio centered on AI.
Speaker Change: Could you go out you won't be putting through some very cool.
Speaker Change: If I ever see a quite a coupon.
Speaker Change: Entering into Capex becomes a recall and this is a school of British guests on the road since like when he comes with a component of Weird Cambodia.
Speaker Change: Sure.
Speaker Change: Congress He says to me though.
Speaker Change: As a result, we were able to increase our operating income by 4% and reduced capex, while maintaining a strong five G. Subscriber base net borrowings were also reduced through free cash flow improvement and these efforts helped strengthen our fundamentals to transform into an AI company.
Speaker Change: Now to put any weight or attrition at all because you called out you're just saying you could teach unquote you talked you through.
Speaker Change: Email to machine going Oh.
Speaker Change: Cool.
Speaker Change: Cut out 10 P M.
Speaker Change: Gay, which can be a cool oh this was communicated.
Speaker Change: Tony should plenty you Sonya.
Speaker Change: You get some well some of them we don't give so many bands at all I guess for me, though.
Speaker Change: And we will continue with operational improvements this year as well. So that this initiative is not short lift, but it's maintained sustainably and we will develop growth plans optimized for each business model in our telco and AI businesses and allocate resources in a balanced manner. So that we can achieve our bottom line growth.
Speaker Change: And cash flow improvement much more so than what we achieved in 2024.
Speaker Change: Oh, the Chinese Shibuya kept pyxidium moved which totally makes sense did you get out of Japan.
Speaker Change: Okay check on computer deal an untruth joke, it took when young well.
Speaker Change: Okay, Yeah, so I'm going to say its credentials as a little Kid Gmail.
Speaker Change: So again I, just don't Wanna Quito right. Tony you are talking about scenarios to me that you signed me though.
Speaker Change: That's where our Capex plan, we cannot disclose any specific number but we're planning to optimize capex for efficient network operation for the benefit of customers and strategic growth investments and the medium to long term stabilization trend for Capex is going to continue.
Speaker Change: Hi, Glenn.
Glenn: Jim did you mention.
Speaker Change: When you talk to Chicago.
Speaker Change: Yeah.
Speaker Change: Take you to news media.
Two one gentleman cause you to put the cool memorial.
Speaker Change: Yeah.
Speaker Change: Tom a little two minutes.
Speaker Change: How about some Q&A came home 50 meter.
Speaker Change: The following question.
Speaker Change: Centered by Kim Hong Sik from Hana Securities. Please go ahead with your question.
Speaker Change: Yeah.
Speaker Change: Joe pointed you in a moment turning to Chicago, and then you're going to be done well QTL with good description.
Speaker Change: So do you see the Montney Portola Cannondale, <unk> Qt chunky approaches some turmoil in Utah.
Speaker Change: Children should you hung on to motor Mumble mill, she can put it in the Kinder shimbun equal well remember there's two Distensible me on clean dark underwater pooch on Monday.
Speaker Change: And when you go to an English Canada, how much goes on Nellix questions you're close to.
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Speaker Change: Mr. Okubo titration on Teo will trigger to younger boom.
Speaker Change: Component shortages around boy equal.
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Speaker Change: They can develop cutting young.
Speaker Change: Yes.
Speaker Change: Governed by smoking and Golar tundra healthy tissue.
Speaker Change: She stood before he got to see the obviously you need you can come up you know.
Speaker Change: I am Kim ownership from Hyundai Securities. My first question is related to the stockpile trend and recently there was a reversal of stock prices between T. T. N S. K telecom and I believe it is mainly because of the uncertainty surrounding long term dividend payout from K SK telecom.
Speaker Change: And so based on what you are discussed today. It seems that it's not very optimistic for SK telecom for shareholders and investors to expect and so there are still concerns over the future stock price trend of SK Telecom. So what is your outlook or view on your stock price going forward and.
Speaker Change: Secondly, SK telecoms I releases and other press releases, often mention becoming an AI company, but in reality there aren't many companies were able to generate profit using AI and when I actually visit on SK telecoms sale.
Speaker Change: Sales offices, I don't get the impression that they are focusing on AI and you've been talking.
Speaker Change: Talking about using AI for profit generation for some time, so I'd like to understand if you have any plans for b to C price plan or pricing for a b to C as well as our bundling of AI with your and Minto.
Speaker Change: Thank you.
Speaker Change: Yeah sure. So I mean, the Q2 run normal comes on me, though.
Speaker Change: One two punch of emulators.
Speaker Change: Yeah.
Speaker Change: Thank you for your valuable questions I'd like to comment on your first question.
Speaker Change: Yeah.
Speaker Change: Are you going to give us your thoughts when you get it for most of them are interested in that.
Speaker Change: It's in great hands on it and he told me he should be on SK Hynix to T mobile related to machine you only have a clue.
Speaker Change: It is secure and so.
Speaker Change:
Speaker Change: Is key as gifts cure T. So it's got together to me on your ships hutch or neither.
Speaker Change: Are you talking are you at all.
Speaker Change: <unk>.
Speaker Change: I'm sorry, yeah.
Speaker Change: Yeah, you are two machines habitual Cummins I'll kill cut sheet triggered a year to sort of how you got the whole company, though.
Speaker Change: You mentioned about so market cap and back in 2021, there was a spin off from SK telecom, so that we split it off SK hynix and teamwork mobility and other noncore non telecom businesses as escape square and so the combined market cap of it.
Speaker Change: Can you square and SK Telecom is currently more than 24 trillion won and after the spin off we continue to focus on AI business and telecom business in order to improve our corporate value.
Speaker Change: Yeah.
Speaker Change: Sure Joanne noninterest curriculum, joining me what you've got and you saw in goodness me, though rich months horizon above what she she's telling you honestly it took up some place all the time, so neutral Joanna money you don't kitchen sink.
Speaker Change: Good good how cool it is sometimes call them something.
Speaker Change: Total partnering it's all.
Speaker Change: So it jumped English is always how come you though.
Speaker Change: As you point out shareholder return is an important factor that determines the stock price in the market, but however, as you may know very well market valuation does not just for sake of shareholder return, but also reflects other factors, including future growth potentials.
Speaker Change: Yeah.
Speaker Change: Oh I'm sorry, not on what are you you crush took some quota she's hunger.
Speaker Change: Oh yeah.
Speaker Change: Usually I think you should get a horse in a cool it are probably coming up in between there.
Speaker Change: She particular muni Putra cool.
Speaker Change: Staying as I'll jump off.
Speaker Change: And then can you give me that you don't have to gear you learned at all.
Speaker Change: She stopped by pubic tall, yeah. It shows I'm quite familiar with Chiyoda couponing, So Papua languished in Utah.
Speaker Change: Yeah.
Speaker Change: We know that 2025 will be a very important year, where we need to demonstrate the effects of a business to the market and so we are going to produce tangible results through our investment and business partnerships and corporations. So that we can show to the market.
Speaker Change: AI business is competitive and as part of that plan starting from this earnings conference call. We will continue to announce specific AI related revenue and other figures.
Speaker Change: So my sense is embargoed Gee why you Didnt dreams, some cutoff once you win them.
Speaker Change: Q2, two young.
Speaker Change: And what you can do.
Speaker Change: So I'm trying to set up an gotcha, okay. So all right.
Speaker Change: Ski productivity the cheaper in Houston, because I know you don't get him.
Speaker Change: Okay.
Speaker Change: Ladies only me though.
Speaker Change: And as I mentioned earlier, the additional financial resources that will secure from business operation and operation improvements or will it be used in diverse areas to boost our corporate value, including growth investments financial structure improvement and acquisition of equity of S. K.
Speaker Change: Broadband so we will use these resources in a balanced manner.
Speaker Change: He was on a pro tour, okay triggers for generics.
Speaker Change: Zoom jewelry, Virginia as well sometimes.
Speaker Change: So I'm trying to say it because it goes through dual arch would you want to do a hunger.
Speaker Change: Actually throw out at any time Shambo Muslim either signed me though.
Speaker Change: I would like to reiterate that SK telecom will continue to maintain the best or the highest level of shareholder return in the industry in a stable manner and we are committed to sharing additional fruits of growth investments with shareholders.
Speaker Change: You also have to once you actually what it is in buckets introductions are you talking to you soon.
Speaker Change: And about your second question.
Speaker Change: The head of the marketing strategy team will address.
Speaker Change: Yeah.
Speaker Change: Marketing director and jumped on someone like me. The Columbo told me Somebody me Shanxi told me I thought you talked about 10 tons I E.
Speaker Change: Rishi, It's let me say do you want to do a pumpkin in Geek Wichita Martin the economics to me, though.
Thompson Young: I am Thompson young from marketing strategy team on to give you the answer right away, we do not have any specific plans yet.
Thompson Young: When it comes to including AIB to see services, such as eat ought to our immuno price plans.
Yes.
Thompson Young: So what I'm doing a study at all yeah, you've helped a lot when we don't get all eight of whom quiet at Hitachi you've heard me on my head yourself, Paul or you'll need someone who is just on the debt.
Thompson Young: Young and old are open and servicing them familiar tell Ya man or something you're going to have some college goofy, none telephony Delphi thought with him about how if at all either for you you're lucky or you could shut them yet you'll wonder why youll know about it if at all how many of them care for me. Another question me, though.
Speaker Change: But as Mr. Kim at the head of AI business strategy elaborated there will be continuous.
Speaker Change: Results coming from eight on operation and there's a plan to introduce a paid service within this year and I believe that these types of AIB to see services that are popular among users can strengthen the competitiveness of our M. N O products. So when we have more details coming out from the monetization of eight that we will.
Speaker Change: Of course consider the option of bundling eight odd with our mobile price plans.
Speaker Change: You want to do it for me she motor home SK Telecom, where you come from services for them.
Speaker Change: Because I thought you don't want though in Joanna appreciate your time between the time that humans are the reman Doctor Lucas and then youre going to have to come out of the wall.
Speaker Change: John I'm, sorry, you mean, its retail yard times how are you.
When your children withdraw Chevrolet target from you that you're talking about.
Speaker Change: I believe the investors will understand the product and service competitiveness of SK telecom with our attractive price plans. We will continue to make sure that our competitiveness is further strengthened by developing a diverse price plans to satisfy the needs of users and law.
Speaker Change: Ching them in the right time.
Speaker Change: Tom Little Timna discipline in KBC, Connie Kingston sub meter.
Speaker Change: The following question will be presented by Kingdon itself from Kb Securities. Please go ahead with your question.
Speaker Change: Yeah to your mortgage with US a long time, you guys gave me some contingent Oh, yeah, yeah, yeah yeah.
Speaker Change: In order to reestablish can deal.
Speaker Change: Okay.
Speaker Change: I suppose, particularly it's okay. Okay, yeah, it's true.
Speaker Change: They didn't come down as well.
Speaker Change: Okay.
Speaker Change: Thanks, Keith and Luckily, we don't do it.
Speaker Change: T D.
Speaker Change: Okay.
Speaker Change: And mobile is K accrual tone as it can be to me the ITC calculate what is the message.
Speaker Change: I agree with all of them.
Speaker Change: It took at least.
Speaker Change: Okay.
Speaker Change: A lot of water cooled I told them to commit to us.
Speaker Change: Yeah.
Speaker Change: We don't do any kind of deal.
Speaker Change: Yeah, you could do the daily news and hopefully it won't be it will do it.
Speaker Change: Please go get familiar to school or.
Speaker Change: Basically it's just to get closer to where somebody says Oh, Yeah. You helped me, though also on holiday.
Speaker Change: And of course with all of that she didn't equal major shale well create one with your customers adopt.
Speaker Change #100: I'm Kim Jin sang from Kb Securities I. Thank you for this opportunity I'd like to ask questions on your AI infrastructure, and AI X business Ah recently, a very affordable and cheaper AI models, such as deep seek has been introduced in the market and I am sure. It has had some in.
Speaker Change #100: <unk> on your AI infrastructure business. So if you can elaborate more on that we'd appreciate that and you can also comment on that in connection with your a D C business that you're pursuing at the SK group level.
Speaker Change #100: My second question is related to your AI X business and I'm sure that it is critical for SK telecom to show how much it visible or tangible results you can produce from that your AI business.
Speaker Change #100: And.
Speaker Change #100: I would appreciate it if he can provide us with more details on specific business models that you are considering we're pursuing as part of your AI X business and you mentioned that you're expecting about 30% growth in revenue in 2025, and which business models within a X are expected to contribute to this revenue growth.
Speaker Change #100: Yeah Truman comes from your dog when Joe Yeah. It it doesn't yeah. It is.
Speaker Change #100: Switching kombucha and it happened to be cool to vantage any money you used to talk about.
Speaker Change #100: Yeah, Yeah, okay.
Speaker Change #100: And it gives to me though.
Speaker Change #101: Thank you for the question. Your first question will be addressed by the head of a D. C development and the second question on a I X business will be addressed by the head of AI X business development.
Speaker Change #100: Yeah.
Speaker Change #102: D C treatment without you talking to me so I don't see room simulators in groups. One is that you didn't do in D. C.
Speaker Change #103: <unk> chosen Canadian NGO Gohan secret and it's obviously got to comment on I saw you don't want data center in <unk>.
Speaker Change #102: So you got a couple of wins.
I am <unk> <unk> ahead of the a D C development I'd like to comment on specific plans that we're pursuing for AI D C business and as well as the impact of AI models like deep seek on our expected growth in demand for AI in D C infrastructure.
Yeah.
Speaker Change #102: There was one point.
Speaker Change #102: They've got would've happened and so the only transalta Jones from a Colocation data center.
T O.
In total but again.
Speaker Change #102: Got it.
Speaker Change #102: As the full fledged AI era arise we're witnessing an evolution from real estate based co location data center business to a data center business with I T capabilities.
Speaker Change #102: You don't want a data center I'll ask them in bulk the Honeywell crew drew told you I assume then if you look at it on a computer empowered it spoke to him to take one and of course the rule Yugoslavia, So noone Gucci pure.
Speaker Change #102: Who's holding computing powder.
Speaker Change #102: Cool.
Speaker Change #102: And then you constitute polo yeah.
Speaker Change #102: Gucci October to take them, all so you're going to need a hunter you more in Florida 200 can go down there. So maybe talk about what do we know on it when we don't lose on yeah.
Speaker Change #102: Prolonged younger people you hire them.
Speaker Change #102: And the core of AI data centers as two of the be able to provide continuous AI computing power that can process massive AI workloads, which requires high technological capabilities in the areas of high performance computing power represented by Gpus high efficiency power supply to prove.
Speaker Change #102: Maximum computing power and the operation of solutions, where D. C. I M that can organically link these within a limited physical space.
Speaker Change #102: You don't hungry young younger 10 years or more to actually come out of oil and how long ago S.
Speaker Change #104: That's K, Google and <unk> young towards you Pablo do you want me Russell.
Speaker Change #104: Oh, so in data center owner to come in towards younger children.
Speaker Change #105: And the kinds of required illogical capabilities that I, just mentioned cannot be secured by any individual companies on their own. So what we're doing is to implement plans to build the most affordable and most efficient datacenters by pulling together and utilizing the kinds of capabilities possessed by major.
Speaker Change #104: Neat of SK group at the group level.
Speaker Change #104: Is that a CAGR from 280000 ton in SK could acquire Cooper.
Speaker Change #104: Noninterest in Qs would expect theoretically consider yourself two wheel type twos over the conflict in pulmonary and so on and so you can see.
Speaker Change #104: The way you should be able to throw on SK Hynix. We are trying to check are you cool them as key and OTT O. So our partners how about 41. So at times. When you think about something that didn't go as semi wasn't dialed back soon you'll lose 102 hundred young I noticed solution there.
Speaker Change #104: A good segue to get us into two one with Mckool Smith.
Speaker Change #104: So the kinds of data centers that S. K will offer will utilize high tech capabilities that are that exist within the SK group and our partner companies to give you. Some examples SK hynix has world's best H B M and other advanced chip solutions in the computing.
Speaker Change #104: Our power area and SK energy affiliates and partner companies have low carbon LNG power generation small modular reactors fuel cells and other equal friendly energy solutions, we're going to pull together all of these capabilities to offer the best data centers possible.
Speaker Change #104: SK telecom.
Speaker Change #104: He brought in even for 100 of them of course are all we know data center, we're going to try to craft solutions do you see I mean, Oklahoma because solutions.
Speaker Change #104: Okay about how do we grow E com.
Speaker Change #104: So you say you're in Frederick orchestration Huckle data center.
Speaker Change #104: There.
Speaker Change #104: When you're on young younger prevent that we'll pursue it.
Speaker Change #104: And within this framework SK telecom is focusing on developing and operating a data center management solution or a D. C. I am that is used for optimal operation of AI or data centers and in doing so SK telecom will orchestrate the AI data center ecosystem and continue to further.
Speaker Change #104: All of this ecosystem.
Speaker Change #104: And then just two data centers.
Speaker Change #104: Got it so the auto value chain. This up for selected is hanging in there.
Speaker Change #104: So S. K and then we come to them or how do you one set of one business model.
Speaker Change #104: But of course it will.
Speaker Change #104: And in the process of creating and developing the AI data center ecosystem. There are multiple box bottlenecks that we expect in the value chains and S. K will continue to develop and utilize these bottlenecks as an opportunity for new business models and new business opportunities.
Speaker Change #106: Could you talk about Oh, Johnny Knits, Jaco Tomorrow, Hyperscale AI data center connectivity comfortable how we see that.
Speaker Change #106: Switching gears over to Ronan E in photo scale of peso Tiptoeing Young's data center hub.
Speaker Change #106: Sure.
Speaker Change #107: Based on these synergies that we can create we are considering a plan to build in Hyperscale AI data center in a location not within so and in the medium to long term, we are planning to scale. It up so that it can become an AI data center hub in the Asia Pacific region.
Speaker Change #108: No Tom Rooney in deep sea forgot to pushing Toyama go in front of talking soon so obviously she doesn't rule yeah. Yeah in fact go to.
Speaker Change #108: Two more hooked on cutting somebody there in Thailand.
Speaker Change #107: During the day are you doing.
Speaker Change #110: And secondly, I'd like to talk about the implications of deep seek and other similar more affordable and less in fact infrastructure intensive models.
Speaker Change #107: Do you see crude how about a triptan diesels accumulate days on N genius.
Speaker Change #107: And for John Creeps Me that mine has long been a panera anymore that it turns out it hadn't done it goes and we go Hey, datacenter tornado in fresh young as homogeneous with Tonight and Tomorrow second one that will probably neither.
Speaker Change #111: Even though the scale of resources invested in the development of deep seek has not been confirmed the emergence of cost effective AI models could actually serve as an opportunity to promote the growth of the our infrastructure markets such as AI data centers.
Speaker Change #107: So obviously kept us all coal.
Speaker Change #111: So I'm wondering do you do that it will be cancelled credit of course school told you about a month.
Speaker Change #111: China, Thailand, obviously, the digital retail and high cost to get them their EBIT Petsmart and are you in for I assume then John Gandolfo with me, though.
Speaker Change #111: As of development costs, where services will continue to go down more companies will accelerate the adoption of AI and its various application services continue to emerge based on these inixile inexpensive AI models, we believe that the demand for our infrastructure to support them will also increase.
Speaker Change #111: Oh, well, let's say you are more than just home they want to talk to a little.
Speaker Change #111: Some of them deploy Sunil you didn't ask it.
Speaker Change #111: I don't even within an encompassing peloton careful because I'm going to ask about that in so many of you in first of all it conjunctival Krishna.
Speaker Change #112: These AI models need to continue to improve through learning and training and this will lead to more demand for computing power. So I believe that the recent trend has positive impact on our AI infrastructure business.
Speaker Change #112: So I'm, assuming you ought to see us keep reviewing constantly cumin during a competent potency wanted English spoken word.
Speaker Change #112: Constant Paolo Toyo Swoop, we know what's going on there. So caetano. So I'll go through in datacenter Tiguan English people put it in there.
Speaker Change #112: She's only up till now I talked a little too so yeah to your current info thing to get them on their own that otherwise.
Speaker Change #112: We're not just aiming at providing high capacity computing power, but we aim to build the most affordable and efficient data centers in terms of computing power power supply in operation and to supply an AI infrastructure solution package based on this and we will respond flexibly to market changes and create an AI infrastructure.
Speaker Change #112: System optimized for them.
Speaker Change #112: Yeah.
Speaker Change #112: Yeah, Yeah yeah.
Speaker Change #112: Oh the P M.
Speaker Change #112: To sum it down to a month.
Speaker Change #112: Yeah.
Speaker Change #112: I am Kim sung <unk> head of the a X business development, Let me comment on your question on our current status and expected revenue for 2025 from a X.
Speaker Change #113: What do you wish I ask all of them.
Speaker Change #113: Yeah, Yeah, yeah, yeah. She shirlington unless you know you could give on that.
Speaker Change #113: To be sobbing AIP to be home.
Speaker Change #113: Yeah.
Speaker Change #113: Competing movie club's owner to one floats all equal.
Speaker Change #113: It helps you know Yankees.
Speaker Change #113: Can we get a transformation from a to use cases, you got G Tel Baruch somebody at least.
Speaker Change #113: Our AI X business consists of number one.
Speaker Change #113: Existing AI related b to B business, such as AI vision, and a T C and number two a cloud business that provides.
Speaker Change #113: Out computing power and number three a T use case business that supports corporate clients AI transformation using SK Telecom's AI technologies, such as Gen AI.
Speaker Change #113: A couple almost noon yeah. It was on top on to a close as Hoffman T O V E. Obviously Monday.
Speaker Change #113: I think Tony TPU shipyard doing from opinion.
Speaker Change #113: They must be sold or any idea when the extra and Tim It is humbling.
Michael: Michael you should plan under which we used to put them.
Speaker Change #113: He didn't do you mean in that environment with Chicago.
Speaker Change #116: To give you more details by our lease business times first of all AI cloud refers to cloud MSP business that provides GPU and CPU computing power and it is a very solid business model that accounts for about two thirds of the total AIA X revenue and its revenue growth in 2024 was already more.
Speaker Change #113: 20%.
Speaker Change #113: Yeah.
Speaker Change #117: Just a moment then to be told them you should sanya and David how many people know how much of freedom from Gainesville belonging to a play a cool what are those channels how much Peru is almost from day one with him.
Speaker Change #113: Yeah.
Speaker Change #118: Moving onto the a b to B business, such as AI vision and AI C. C revenue grew more than 30% year over year in 2024 to <unk> 60 billion won and we aim to accelerate growth this year with a target revenue growth rate of more than 30%.
Speaker Change #118: All the way to use case Hollywood three SK telecom from Meda escape route into August KCG, sometimes that one Tim Riddle head, okay. So generally the tongue.
Speaker Change #118: You'll be pure running on Windows, eight Asian tool tornado.
Speaker Change #118: I think youll put them in jail ischemic rebate unbalanced.
Speaker Change #118: E coupon redemption level.
Speaker Change #118: Oh shoot yourself be true I think she glucose.
Speaker Change #118: Yeah.
Speaker Change #119: Finally, the a T use case business is a new fitness area, where SK telecom SK broadband and SK CNC are working as one team and we aim to innovate the way SK group conducts business by applying AI agents to diverse work domains and based on these results we're planning to turn it into a.
Speaker Change #118: Actual business model for external customers to produce meaningful revenue.
Two use cases all of it on the highlighted them yet.
Speaker Change #118: It's Higgins I guess that's helpful.
Speaker Change #120: So Clinton and Hadar took someone with T <unk>.
Speaker Change #120: Hmm with him over the intercom really agent one in Ada pieces I'm going to go into and then in regards to the movement in commodity auditor.
Good talking to you on that and I'm not kidding till it is something that's even a little can you do anything with it. So yeah, you could pause at all I Didnt do all the things I am doing food on them to do.
Speaker Change #120: So you're going to do something for them at all because I'm curious to me that.
Speaker Change #121: To give you more detail C. A T use case business has basically three main products first aid on this which automates not only common tasks such as meeting minutes generation, but also specialized tasks such as legal and tax affairs. The second product is market intelligence, which supports decision may.
Speaker Change #121: King through predictions on commodity trade, such as LNG and finally, the manufacturing a product that improves R&D efficiency using AI in the manufacturing sector.
Speaker Change #122: What do you see it go to a to use case through most of the optimism is the practice through Hoffman in Detroit Okay.
Speaker Change #121: Who do they correlate group you'll talk to me, though there are some quite of them under one are you doing.
Speaker Change #121: This year, we will focus on expanding and working on these three major a T use cases to our SK group of affiliates to secure best practices and references and later, we plan to expand the business to external clients to reduce to produce sizeable results.
Speaker Change #121: Literally I celebrate sunny Sanyal mitzvah and tumble they publish books continuing to do.
Speaker Change #121: But we don't do it and then how much you're probably dealing with them generally will put away for me though.
Speaker Change #123: K telecom young to switching.
It could be using one of the jacuzzi nice to meet him at she's doing something which was only a little more than a year, but yeah, you're constantly to no one in that field.
Speaker Change #123: Uh huh.
Speaker Change #124: And the a X business revenue in 2024 was 193 billion won and our growth target for 2025 is 30%. It still takes up a small portion in the total revenue of SK telecom, but we will demonstrate the potential of using AI for a profit.
Speaker Change #123: Asian by driving meaningful revenue growth from our <unk> business.
Speaker Change #124: Okay.
Speaker Change #124: That wasn't the only Columbia goes rules, which are a typical first quarter, we'll do much will ship.
Speaker Change #124: So Sheila I always want to grow when you just talk about I'm talking with us.
Speaker Change #124: Thank you with this we would like to end. This earnings conference. If you have any further increase please contact the IR team. Thank you.