New Street Research - SK Telecom Co. Ltd. (017670) SK Telecom (Neutral, KRW 78,000, +43%) Overall impact of data breach (much) bigger than originally indicated

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New Street Research

Chris Hoare

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SK Telecom (Neutral, KRW 78,000, +43%) Overall impact of data breach (much) bigger than originally indicated

It is now clear that as we thought, the market’s initial response to SKT’s data breach was too sanguine, as earlier today, South Korea's regulator ordered SKT to waive the termination fees following April's cyberattack, and thereafter, SKT agreed to the waiver and announced a Customer Appreciation package and therefore cut 2025 revenue guidance, and said that it now expects EBIT to decline this year too. In this note, we summarise our thoughts and assess the potential financial impact.

04/07/2025 1 EN

Underlying

SK Telecom Co. Ltd.

SK Telecom is a wireless telecommunications services provider in the Republic of Korea (South Korea). Co. provides the following services: wireless Internet services, which include music portal services, game portal services, multimedia services, and wired and wireless integrated multimedia services; ubiquitous and convergence services, which include telematics, digital home, commerce, mobile radio frequency identification and mobile community; international roaming services, which include global system for mobile communication; video telephony services, which enable subscribers incorporating video conferences, as well as B2B services.

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KR7017670001 Korea Stock Exchange South Korea

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Analysts

Chris Hoare

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SK Telecom (Neutral, KRW 78,000, +43%) Overall impact of data breach (much) bigger than originally indicated

Takeaways from Meetings with the Korean Telcos in Seoul. KT to KRW 105,000 SKT to Neutral.

SK Telecom (Buy, KRW 86,000, +65%) Q1 25 Quick Take: Good cost cutting progress overshadowed by impact of data breach

Altice France (Overweight) Iliad (Equal Weight) Bouygues (Buy, TP: €55, +40%) Orange (Buy, TP: €14.9, +13%) More smoke about French M&A (must be some fire): Bid-Ask gap closing?

EM Towers Q1 CY25 review: Steady as she goes

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