Telecoms see AI businesses gain traction in Q2
SK Telecom said Q2 revenue edged up 0.5% to 4.3591T won and operating profit rose 67.3% to 566B won, helped by lower one-off costs. Its AI data center business jumped 92.5% to 136.2B won. KT reported revenue 6.6799T won (-10.1%) and operating profit 648.3B won (-36.1%), but AI transformation revenue rose 22.3%. LG Uplus revenue fell 3.9% to 3.69T won, while operating profit rose 13.1% to 344.5B won, with AIDC revenue up 28.9% to 124.1B won.
How this was made
The 30-second read
Why it matters
Traders can use the segment-level growth rates and capex plans to reassess earnings mix and near-term catalysts for Korean telecoms, especially where AI infrastructure is translating into operating profit.
Market read
Segment growth in AIDC and AX is emerging as a measurable driver of profits, but consolidated results remain mixed across operators, creating dispersion in how investors may price the AI capex cycle.
What to watch
Execution risk is high: the article cites large multi-year AIDC capacity targets and new builds, but does not quantify margins, customer concentration, or whether demand is already contracted.
Background
The article frames Q2 performance of major Korean telecom operators, highlighting early traction in AI data centers (AIDC) and AI transformation (AX) businesses while traditional telecom remains weak.
Ticker impact
SK Telecom said Q2 operating profit rose 67.3% and its AIDC revenue surged 92.5% year-on-year, driven by expanded AI data center capacity.
Likely supportive for SKM shares on any market read-through to sustained AIDC demand and capex execution.
The article provides specific Q2 profit and AIDC growth figures plus a multi-year AIDC capacity plan, which are concrete fundamentals rather than commentary.
KT reported Q2 revenue down 10.1% and operating profit down 36.1%, but its AI transformation (AX) revenue rose 22.3% year-on-year.
Near-term reaction could be mixed, with downside risk from weaker headline profit but offset by AX growth and project wins.
The article includes both consolidated declines and a specific AX growth rate plus early project traction, giving traders a basis to reweight the earnings mix.
Market effects
Reinforces the market narrative that Korean telecom operators’ AI data center and cloud/AX units are becoming a measurable earnings driver, not just a strategy.
Could shift investor focus toward Korea’s AI infrastructure capex pipeline and HPC demand, influencing sentiment across local data center and subsea cable supply chains.
Adds to global telecom AI-infrastructure read-through, where investors may compare segment growth and capex plans across carriers internationally.
Counterpoint
AI segment growth may not be enough to offset legacy telecom stagnation, and profit gains could be partly influenced by one-off items (e.g., hacking-related cost absence, real estate gains last year).
Key entities
- companySK Telecom
Reported Q2 operating profit up 67.3% and AIDC revenue up 92.5% year-on-year, plus plans to invest 750 billion won through 2030 and build 5 GW of AIDC capacity by 2029.
- companyKT
Reported Q2 revenue down 10.1% and operating profit down 36.1%, but AX revenue up 22.3% year-on-year, supported by financial-sector AI adoption and KT Cloud growth.
- companyLG Uplus
Reported revenue down 3.9% but operating profit up 13.1% to a record quarter, with AIDC revenue up 28.9% and a 200 MW AIDC project planned for Paju with first facility opening in 1H 2027.
