The three mobile players in South Korea registered double-digit gains in 5G users in Q2, but offered few additional bright spots across their mobile operations, with weak service revenue growth and ARPU broadly flat.
In their earnings releases, the operators generally turned the focus to new businesses and AI rather than their core operations.
SK Telecom (SKT) highlighted it secured its first AI cloud order from domestic ISPs, noting it plans to scale up its AI cloud business significantly.
Executives on its earnings call talked-up its AI strategy, which they claimed was driving growth in related businesses.
Enterprise revenue increased 11 per cent year-on-year to KRW434.2 billion ($318.9 million), supported by 29 per cent growth in IoT and 28 per cent in cloud.
The data centre unit grew 20.5 per cent to KRW59.5 billion.
5G
SKT ended June with 16.2 million 5G subscribers, up 10.6 per cent.
KT’s grew 10.8 per cent to 10.1 million and LG Uplus’ 12.3 per cent to 7.4 million
ARPU was flat at LG Uplus (KRW35,064), down 2.1 per cent at SKT to KRW29,298 and up 1.6 per cent at KT to KRW34,507.
KT booked a 2.7 per cent increase in mobile service revenue to KRW1.7 trillion. SKT followed with a 2.1 per cent gain to KRW2.7 trillion and LG Uplus’ inched up 1.7 per cent to KRW1.5 trillion.
MVNO users for KT increased 2.2 per cent to 7.1 million and LG Uplus’ 51.5 per cent to 7.4 million.
On the profit front, KT and LG Uplus booked falls in net income, down 5.1 per cent to KRW410.5 billion and 22.8 per cent to KRW164.6 billion, respectively, both attributed to higher operating costs. SKT’s rose 2.5 per cent to KRW337.4 billion.
KT CFO Min Jang said on a call the company continues to push on a business rationalisation process, with the goal of shifting to more sustainable growth in the future and an eye to streamlining low-margin businesses.
He acknowledged sales may decline in the short term, but said it is confident they will rebound in the longer run.
The post Korea operators talk up AI as core biz sputters appeared first on Mobile World Live.
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