SK Telecom Co Ltd (SKM) 2023 Q4 法說會逐字稿

(spoken in foreign language)

（用外語說）

Good morning and good evening. First of all, thank you all for joining this conference call. Now we will begin the conference of the fiscal year 2023 fourth quarter earnings results by SK Telecom. This conference will start with a presentation followed by a divisional Q&A session. (Operator Instructions) Now we shall commence the presentation on the fiscal year 2023 fourth quarter earnings results by SK Telecom.

早安，晚上好。首先，感謝大家參加本次電話會議。現在我們開始召開SK Telecom 2023財年第四季收益業績發表會。本次會議將以演講開始，隨後是部門問答環節。(操作員指示)現在我們開始介紹 SK Telecom 2023 財年第四季的獲利結果。

(Interpreted) Good morning. I am Hee Jun Chung, IRO of SK Telecom. Thank you for joining SK Telecom's earnings conference call. Today, we will first deliver a presentation on major events, 2023 full year earnings highlights and business performances, which will be followed by a Q&A session. The call is attended by our Executives from relevant business divisions, including Jinwon Kim, CFO of SK Telecom. And we're providing consecutive interpretation for the call.

（翻譯）早安。我是 SK Telecom 的 IRO Hee Jun Chung。感謝您參加 SK Telecom 的財報電話會議。今天，我們將首先就重大事件、2023年全年獲利亮點和業務表現進行演講，然後進行問答環節。我們相關業務部門的高階主管參加了此次電話會議，其中包括 SK Telecom 的財務長 Jinwon Kim。我們正在為此通話提供連續翻譯。

As you may know, I like to remind you that all forward-looking statements are subject to change depending on various factors such as market and macro situations. Let me now present our CFO.

您可能知道，我想提醒您，所有前瞻性陳述都可能根據市場和宏觀情況等各種因素而改變。現在我來介紹一下我們的財務長。

(Interpreted) Good morning, this is Jinwan Kim, CFO of SK Telecom. It is my first time to greet you to and as we head into the Lunar New Year holiday, I would like to wish you a very Happy New Year.

(口譯) 早安，我是 SK 電訊財務長 Jinwan Kim。這是我第一次向你們問好，在農曆新年假期即將來臨之際，我謹祝你們新年快樂。

In the third quarter of last year SK Telecom announced the AI Pyramid strategy to become a global AI company at CES 2024 held in Las Vegas last month, we showcased AI technologies that promise to change our daily lives and actively engaged in discussions with global leading AI players to expand globe partnerships. Through these efforts, we will strive to produce concrete AI business results this year.

去年第三季度，SK Telecom 在上個月於拉斯維加斯舉行的 CES 2024 上宣布了成為全球 AI 公司的 AI 金字塔策略，展示了有望改變我們日常生活的 AI 技術，並積極與全球領先的 AI 公司進行討論，以擴大全球合作夥伴關係。透過這些努力，力爭今年人工智慧業務取得具體成果。

Let me first report on the annual consolidated financial results for 2023. Thanks to improved earnings of SK Telecom and SK Broadband, consolidated revenue reported KRW17 trillion, 608.5 billion, up 1.8% year-over-year. Operating income posted KRW1 trillion, 753.2 billion, up 8.8% year-over-year. And net income posted KRW1 trillion, 145.9 billion.

首先，我來報告一下2023年度合併財務表現。受SK Telecom和SK Broadband收益改善影響，合併營收達17兆6085億韓元，年增1.8%。營業收入為1兆7,532億韓元，年增8.8%。淨收入達1兆1,45​​9億韓元。

On a non-consolidated basis, revenue posted KRW12 trillion, 589.2 billion, up 1.4% year-over-year. Operating income and net income reported KRW1 trillion, 455.9 billion and KRW1 trillion, 59.7 billion , respectively. Let me now turn to business highlights for 2023 and strategic directions in accordance with the AI Pyramid strategy.

非合併營收為12兆5,892億韓元，年增1.4%。營業收入和淨收入分別為1兆4,559億韓元和1兆597億韓元。現在，我來談談2023年的業務亮點以及按照AI金字塔策略的策略方向。

First, I'd like to cover the AI infrastructure domain, which serves as the foundation of the AI Pyramid. Supported by the continued increase in utilization rates, data center revenue for 2023 achieved a 30% growth year-over-year. Demand for data centers that accommodate GPUs is expected to grow significantly with the arrival of the AI era. Therefore, SK Telecom plans to drive the data center business, more strongly focused on the next-generation AI data centers and global expansion.

首先，我想介紹一下人工智慧基礎設施領域，它是人工智慧金字塔的基礎。在利用率持續提升的支撐下，2023年資料中心營收實現了年增30%。隨著人工智慧時代的到來，容納GPU的資料中心的需求預計將大幅成長。因此，SK Telecom 計劃推動資料中心業務，更加專注於下一代 AI 資料中心和全球擴張。

Sapeon, an AI semiconductor company launched X330, a next-generation inference chipset at the end of last year. At this year CES, Sapeon had discussions with Supermicro, a global service provider on how to cooperate to increased sales of X330. The two companies also, we plan to pursue business cooperation on next-generation AI data centers.

人工智慧半導體公司Sapeon於去年底推出了下一代推理晶片組X330。在今年CES上，Sapeon與全球服務供應商Supermicro探討如何合作提升X330的銷售量。兩家公司也計劃在下一代AI資料中心方面開展業務合作。

SK Telecom has been pursuing a two-track multi LLM strategy centered on our own capabilities as well as external partnerships. To be more specific, we are striving to evolve A.X our own LLM into a multimodal LLM through continuous performance the enhancements.

SK Telecom 一直推行以自身能力和外部合作夥伴關係為中心的雙軌多法學碩士策略。更具體地說，我們正在努力透過不斷的效能增強將我們自己的 LLM A.X 發展為多模式 LLM。

We're also developing on AI platform that will offer diverse LLMs in cooperation with leading domestic and foreign AI companies such as Entropik, OpenEye, Organize, and Kolon Technology. Furthermore, together with the global telco AI alliance, concrete global expansion plans are being developed for the telco-specific LLM that SK Telecom has been working on.

我們也正在開發人工智慧平台，將與 Entropik、OpenEye、Organize 和 Kolon Technology 等國內外領先的人工智慧公司合作，提供多樣化的法學碩士學位。此外，SK Telecom 也與全球電信 AI 聯盟一起，針對其一直致力於開發的電信專用 LLM 專案製定具體的全球擴張計劃。

Next, AIX domain covers our internal core businesses such as MNO, Broadband, and Enterprise, as well as closely related external businesses such as mobility, health care, and media. Among the internal areas of AIX, the MNO business recorded 15.67 million 5G subscribers as of the end of 2023, which accounts for more than 68% of the total subscriber base. SK Broadband's pay TV subscribers and broadband subscribers reached 9.55 million and 6.93 million, respectively, as of the end of 2023. We're planning to launch a personalized AI TV service that will give our customers a new experience.

接下來，AIX 領域涵蓋了我們的內部核心業務，例如 MNO、寬頻和企業，以及密切相關的外部業務，例如行動性、醫療保健和媒體。在AIX內部區域，截至2023年底，MNO業務記錄了1,567萬5G用戶，佔總用戶群的68%以上。截至 2023 年底，SK Broadband 的付費電視用戶數和寬頻用戶數分別達到 955 萬和 693 萬。我們計劃推出個人化的人工智慧電視服務，為我們的客戶帶來全新的體驗。

The enterprise business continues to gain orders for IoT lines while striving for growth by developing diverse AI business items such as AICC, vision AI, and big data. The cloud business grew its annual revenue by more than 30% year-on-year. Thanks to the increase in recurring MSP sales.

企業業務方面，持續獲得IoT產品線訂單，同時透過拓展AICC、視覺AI、大數據等多樣化AI業務項目，努力實現成長。雲端業務年營收年增30%以上。這得歸功於經常性 MSP 銷售額的增加。

Moreover, based on the multi LLM strategy aimed at providing diverse LLM models that cater to specific environment and needs of customers. We opened the subscription type enterprise AI market in January. At the same time, we will pursue on-premise implementation projects for clients in the financial and public sectors where security is of utmost priority. These are part of our efforts to gain leadership in the enterprise AI market this year.

此外，基於多LLM策略，旨在提供適合特定環境和客戶需求的多樣化LLM模式。我們在一月開放了訂閱型企業AI市場。同時，我們也將為安全至上的金融和公共部門客戶開展現場實施專案。這些都是我們今年在企業AI市場奪取領導地位的努力的一部分。

Moving on to the external areas of AIX, we're focusing on taking the lead in the UAM business. This year we will showcase actual UAM aircrafts by Joby Aviation for the first time in Korea at the K-UAM grand challenge. The two companies will also enter the global UAM market together through close cooperation.

在 AIX 的外部領域，我們專注於在 UAM 業務中佔據領先地位。今年我們將在K-UAM大挑戰賽上首次在韓國展示Joby Aviation真正的UAM飛機。兩家公司也將透過緊密合作，共同進軍全球城市空中交通市場。

Regarding Excalibur, an AI powered veterinary X-ray analysis solution, we entered the global market last year through strategic partnerships in Japan, Australia, and Singapore. In January, SK Telecom signed an MOU with the Technology Innovations, a global leader in veterinary imaging services to target the US market.

至於人工智慧獸醫X射線分析解決方案Excalibur，我們去年透過與日本、澳洲和新加坡建立策略夥伴關係進入了全球市場。今年 1 月，SK Telecom 與獸醫影像服務領域的全球領先企業 Technology Innovations 簽署了一份諒解備忘錄，瞄準美國市場。

Let me now report on the AI services. With the official launch last year, A. created a huge store in the market in October by launching a call recording and summary functions. A. continues to innovate customers communication experience with new features, including a real-time call interpretation service in December. We will keep adding killer services to enable A. to become a truly personal AI assistant.

現在讓我報告一下人工智慧服務的情況。隨著去年10月份A.正式推出通話記錄和摘要功能，在市場上佔據了巨大的份額。A. 持續透過新功能創新客戶的溝通體驗，包括 12 月的即時通話翻譯服務。我們將繼續增加殺手級服務，使 A. 成為真正的個人 AI 助理。

Thanks to the popularity of ifland launched in May last year ifland recorded the MAU of KRW3.61 million as at the end of 2023 and achieved meaningful growth in overseas markets such as India. For the more the economic system introduced last year is contributing to enhancing the platforms vitality, such as the increase in usage time. This year, we will offer differentiated services such as AI persona and AI Studio by actively combining generative AI capabilities with ifland services.

由於去年 5 月推出的 ifland 的巨大人氣，截至 2023 年底，ifland 的每月活躍用戶達到 361 萬韓元，並在印度等海外市場實現了顯著增長。去年推出的經濟系統更是有助於提昇平台的活力，例如使用時間的增加。今年，我們將積極將生成式AI能力與ifland服務結合，提供AI persona、AI Studio等差異化服務。

T universe achieved the MAU of more than KRW2.35 million as of the end of 2023 through partnerships with big players such as YouTube Premium, having positioned itself as Korea's leading subscription service. We will continue to add impactful products such as Netflix and pursue substantial growth by transforming T universe as an AI base subscription commerce platform.

T universe 透過與 YouTube Premium 等大型公司的合作，截至 2023 年底，每月活躍用戶數 (MAU) 超過 235 萬韓元，將自己定位為韓國領先的訂閱服務。我們將繼續增加 Netflix 等有影響力的產品，並透過將 T universe 轉變為基於 AI 的訂閱商務平台來追求實質的成長。

The amount of dividends for 2023 was determined by the Board at KRW3,541, including KRW2,491 that was already paid out and KRW1,051 for Q4. It is subject to the approval at the General Meeting of Shareholders in March.

董事會確定 2023 年股息金額為 3,541 韓元，其中包括已支付的 2,491 韓元和第四季的 1,051 韓元。此舉需獲得三月股東大會的批准。

Finally, our annual consolidated revenue target for 2024 is KRW17.9 trillion, up approximately 2% year-over-year. With clear slowing down trend in 5G subscriber growth and MNA revenue growth, internal and external environment remains challenging, raising concerns for this year. However, by producing meaningful results in the new growth businesses in AI domains, we will strive to maximize corporate value and shares holder value.

最後，我們2024年的年度合併收入目標是17.9兆韓元，年增約2%。5G用戶成長和MNA營收成長放緩趨勢明顯，內外在環境依然嚴峻，引發對今年的擔憂。但是，透過在AI領域的新增長事業中創造有意義的成果，我們將努力實現企業價值和股東價值的最大化。

We ask your continued support and encouragement. Thank you. We'll now begin the Q&A session.

我們請求您繼續給予支持和鼓勵。謝謝。我們現在開始問答環節。

(Operator Instructions)

（操作員指令）

Seyon Park, Morgan Stanley.

摩根士丹利的 Seyon Park。

(Interpreted) I'm Seyon Park from Morgan Stanley. Thank you for this opportunity. I would like to ask two questions. First of all, I'd like to know more about your outlook on the MNO revenue as well as MNO ARPU trend for 2024. The second question has to do with your shareholder return policy. Your three-year shareholder return policy has ended in 2023. So what is your plan for shareholder return going forward?

(翻譯)我是摩根士丹利的 Seyon Park。謝謝你給我這個機會。我想問兩個問題。首先，我想進一步了解您對2024年MNO收入以及MNO ARPU趨勢的展望。第二個問題與您的股東回報政策有關。您的三年股東回報政策已於 2023 年結束。那麼，您對未來的股東回報計畫是什麼？

(Interpreted) Hello, Jinwon Kim, CFO, SK Telecom. Thank you for your questions. Let me first answer your question on our outlook on 2024, MNO revenue and ARPU trend. As of the end of 2023, our 5G handset subscribers reached 15.67 million with the 5G penetration rate exceeding 68%. Therefore, we expect the growth of subscribers and MNO revenue to clearly slowed down year-over-year.

(翻譯) 您好，我是 SK Telecom 財務長 Jinwon Kim。感謝您的提問。首先，讓我回答您關於我們對 2024 年 MNO 收入和 ARPU 趨勢的展望的問題。截至2023年底，我們的5G手機用戶數達1,567萬戶，5G滲透率超過68%。因此，我們預期用戶數量和MNO收入的成長將比去年同期明顯放緩。

We believe, that this is an inevitable trend as more than five years have passed since the launch of 5G service in 2019. So we are determined to drive MNO growth through other various means in addition to subscriber net ads. For instance, we will attract and retain customers through killer services, such as A.'s call recording feature for iPhone users, which garnered much attention. Also, we will continue to add differentiated benefits, including the linked to subscription services such as T universe in order to drive customer demand for premium plans.

我們相信，自2019年推出5G服務以來已經過去五年多了，這是一個不可避免的趨勢。因此，我們決心透過用戶網路廣告之外的其他各種方式來推動 MNO 的成長。例如，我們會透過殺手級服務來吸引和留住客戶，例如A.為iPhone用戶提供的通話錄音功能就引起了廣泛關注。此外，我們將繼續增加差異化優惠，包括與 T universe 等訂閱服務相關的優惠，以推動客戶對高級計劃的需求。

In addition, we will actively utilize AI to offer and recommend customized products and services for customers and provide efficient and quality customer consultation which will contribute to improving customer experience, and leading to better productivity and profitability. And furthermore, just like the roaming service that enjoyed more than 10% growth from even the pre pandemic level, we will continue to develop and expand diverse revenue streams to continue the growth momentum.

此外，我們將積極利用人工智慧為客戶提供和推薦客製化的產品和服務，並提供高效、優質的客戶諮詢，有助於改善客戶體驗，提高生產力和獲利能力。此外，就像漫遊服務比疫情前成長了 10% 以上一樣，我們將繼續開發並擴大多元化收入來源，以保持成長動能。

Nevertheless, in the process of enterprise business expansion, the number of IoT lines that have lower ARPU is constantly on the rise. So the blended ARPU, including IoT connections, is expected to decline slightly, as was the case in 2023.

然而，在企業業務擴張過程中，ARPU值較低的物聯網線路數量不斷增加。因此，包括物聯網連接在內的綜合 ARPU 預計將略有下降，就像 2023 年的情況一樣。

Now let me address your question regarding our shareholder return policy. 2023 was the last year when the previous shareholder return policy was implemented. Last year's EPS was KRW3,541, which is about 7% higher than the historical level. And also with share buyback of KRW300 billion and cancellation of treasury shares worth KRW200 billion, we believe that last year we recorded a higher level of shareholder return than before.

現在讓我來回答有關我們的股東回報政策的問題。 2023年是上一年度股東回報政策實施的最後一年。去年的每股收益為3,541韓元，比歷史水準高出約7％。此外，透過回購 3,000 億韓元的股票和取消 2,000 億韓元的庫存股，我們相信去年我們實現的股東回報率比以前更高。

So we're currently working on the next shareholder return policy while keeping higher shareholder value as our top priority, we are considering a numerous factors, including the sluggish growth of the MNO business, AI related investments needed to secure new growth engines and a balance in resources allocation between growth and shareholder return. So we will develop the most optimal plan and discuss it with the Board and then communicate with the market when more details are available. We ask for your patience.

因此，我們目前正在製定下一個股東回報政策，同時將更高的股東價值作為我們的首要任務，我們正在考慮許多因素，包括 MNO 業務的成長緩慢、確保新成長引擎所需的 AI 相關投資以及成長與股東回報之間的資源分配平衡。因此，我們將製定最優計劃並與董事會討論，然後在獲得更多細節時與市場溝通。請您保持耐心。

Joonsop Kim, KB Securities.

Joonsop Kim，KB證券。

(Interpreted) Thank you for the opportunity. I'm Joonsop Kim from KB Securities. I like to ask questions regarding your AI business and enterprise business. First of all, there is a great interest in your AI Pyramid strategy in the market. So I like to understand some of the tangible results that you have been producing by making investment in Entropik and by pursuing the Global Telco AI Alliance.

（翻譯）感謝您給我這個機會。我是 KB Securities 的 Joonsop Kim。我喜歡問有關你們的人工智慧業務和企業業務的問題。首先，市場對您的人工智慧金字塔策略有濃厚的興趣。因此，我想了解您透過投資 Entropik 和推行全球電信 AI 聯盟所取得的一些實質成果。

The second question has to do with your enterprise business. You mentioned that the data center business in the cloud business has been enjoying some good growth. And so could you share with us some milestones and the current status as well as future directions which will help us better understand your future direction?

第二個問題與您的企業業務有關。您提到雲端業務中的資料中心業務一直享有良好的成長。那麼您能否與我們分享一些里程碑、當前狀況以及未來方向，以幫助我們更了解您未來的方向？

(Interpreted) Thank you for your questions. As for your question on the results of an investment Entropik in Entropik as well as the Global Telco AI Alliance and future business directions, [Mr. Choi Hwan-seok], Head of the a Strategic Partnership will address this question and then the Head of Enterprise Business Strategy office will address your question on our Enterprise business.

（翻譯）感謝您的提問。至於你問Entropik對Entropik的投資結果以及全球電信AI聯盟（Global Telco AI Alliance）的業務未來方向，[Mr.策略夥伴關係負責人崔煥錫（Choi Hwan-seok）將回答這個問題，然後企業業務策略辦公室負責人將回答您有關我們的企業業務的問題。

(Interpreted) As you may know, SK Telecom invested $100 million in Entropik, a global AI leader in August 2023. We have been advancing our own LLM while building the telco-specific LLM in cooperation with global leading AI company such as OpenEye and Entropik. The telco-specific LLM is currently under development utilizing the large telco data that the company has. It is our target to release commercial features that can be applied for AI contact centers and telco agents in the first half of this year.

(翻譯) 大家可能知道，SK Telecom 於 2023 年 8 月向全球 AI 領導者 Entropik 投資了 1 億美元。我們一直在推動自己的法學碩士學位，同時與 OpenEye 和 Entropik 等全球領先的人工智慧公司合作打造電信特定的法學碩士學位。目前正在利用該公司擁有的大量電信數據開發針對電信公司的 LLM。我們的目標是在今年上半年發布可應用於 AI 聯絡中心和電信代理商的商業功能。

Also through the Global Telco AI Alliance launched in July last year, we're developing concrete plans for the global expansion of the telco-specific LLM. We're also expanding the K-AI alliance through investment in organized and implemented in the fourth quarter of last year and we will continue to pursue AI transformation in diverse industries.

此外，透過去年 7 月啟動的全球電信 AI 聯盟，我們正在製定電信專用用法碩士 (LLM) 全球擴張的具體計劃。我們也透過去年第四季組織和實施的投資來擴大K-AI聯盟，並將繼續在各行業推行人工智慧轉型。

Let me now elaborate more on our Global Telco AI Alliance. As AI service provider, SK Telecom aims to offer telco-specific LLM services utilizing our large telco data. We're currently working on commercializing AI tools that if that will effectively support localization and advancement of diverse telco specific services through our own efforts as well as cooperation with external partners.

現在讓我進一步詳細介紹我們的全球電信人工智慧聯盟。作為 AI 服務供應商，SK Telecom 旨在利用我們龐大的電信資料提供特定電信公司的 LLM 服務。我們目前正致力於將人工智慧工具商業化，以便透過我們自己的努力以及與外部合作夥伴的合作有效地支援各種電信特定服務的在地化和發展。

Launched in July 2023, the Global Telco AI Alliance consists of SK Telecom, Deutsche Telekom, e&, and Singtel, whose total subscriber stand at 1.4 billion in 50 countries around the world and other global leading telcos have shown interest in joining the alliance. We plan to expand telco-specific LLMs by incorporating data and needs of the alliance members. If we can commercialize AI solutions based on the economies of scale afforded by the alliance members, we will be one of the few companies in the world that can gain meaningful earnings from AI businesses.

全球電信 AI 聯盟於 2023 年 7 月成立，由 SK 電信、德國電信、e&S 和新加坡電信組成，其總用戶數達 14 億，遍佈全球 50 個國家，其他全球領先電信公司也已表示有興趣加入該聯盟。我們計劃結合聯盟成員的數據和需求，擴大電信特定的 LLM 課程。如果我們能夠依托聯盟成員的規模經濟將人工智慧解決方案商業化，我們將成為世界上為數不多的能夠從人工智慧業務中獲得有意義收益的公司之一。

I am [J. J. Jun], Head of Enterprise Business Strategy Office. Let me first comment on the success of SK Telecom's Enterprise business. In 2023, driven by higher data center utilization rates and cloud volume all areas of enterprise business enjoyed growth. As a result, the Q4 revenue recorded KRW436.6 billion, up 11.4% year-on-year. And the full year revenue posted KRW1 trillion, 630.6 billion, up 8.1% year-over-year.

我是[J. J.Jun]，企業業務策略辦公室負責人。首先，我想評論一下 SK Telecom 企業業務的成功。2023年，在資料中心利用率和雲端量提高的推動下，企業業務的所有領域均實現了成長。結果，第四季營收達到4,366億韓元，年增11.4%。全年營收達1.6306兆韓元，年增8.1%。

Moving on to the prospects for data center and other businesses. First of all, of our data center business, we expect continued quarterly growth along with increasing utilization of new data centers. So this trend is expected to continue. And this year's annual data center revenue is expected to grow at a similar rate as of the previous year.

繼續討論資料中心和其他業務的前景。首先，對於我們的資料中心業務，我們預期季度成長將持續，同時新資料中心的利用率也將提高。預計這一趨勢將會持續下去。預計今年的資料中心年收入將與上年保持相似的成長速度。

Also we're in the process of adding new data centers in the multiple metropolitan area with a goal of becoming Korea's number one, data center operator by doubling our data center capacity by 2030 to 200 megawatts.

此外，我們正在多個大都會區增加新的資料中心，目標是到 2030 年將資料中心容量增加一倍至 200 兆瓦，成為韓國第一大資料中心營運商。

Next on our cloud business, we plan to pursue this cloud business centered on expanding the AI cloud business to capitalize on the growing demand for AI cloud with the popularity of chat GPT as well as improving our multi-cloud business for MSPs. Also were working on cloud business scale-up to win orders from big accounts based on SK Telecom's own cost optimization technologies.

接下來，在我們的雲端業務方面，我們計劃以擴展 AI 雲端業務為中心開展雲端業務，以利用聊天 GPT 的普及對 AI 雲端日益增長的需求，並改善我們的 MSP 多雲業務。也致力於利用SK Telecom自身的成本優化技術擴大雲端業務規模，以獲得大客戶訂單。

Soojin Kim, Mirae Asset.

Soojin Kim，未來資產管理公司。

(Interpreted) I'm Kim Soojin from Mirae Asset Securities. Thank you for the opportunity. I'd like to ask two questions. First of all, regarding the A. service you officially launched last year, we understand that this service is doing really well.

(翻譯) 我是未來資產證券的金守鎮 (Kim Soojin)。感謝您給我這個機會。我想問兩個問題。首先，關於你們去年正式推出的A.服務，我們了解到這項服務做得非常好。

So if there are any specific performance numbers that you can share with us, so we would appreciate that. And I would also like to understand the A. success on the impact on the fixed [and] mobile business or the current trend as well as the future directions. As for the second question, I'd like to understand the IPO plans for SK Broadband as well as your outlook on the earnings for SK Broadband in 2024.

因此，如果您能與我們分享任何特定的性能數據，我們將不勝感激。我還想了解 A. 成功對固定[和]行動業務的影響或當前趨勢以及未來的方向。至於第二個問題，我想了解SK Broadband的IPO計劃以及您對SK Broadband 2024年盈利的展望。

(Interpreted) Thank you for your questions. Regarding our thoughts on SK Broadband IP deals, I'm going to comment on this question and then a more specific details will be provided by the Head of Corporate Planning Office at SK Broadband. Then the head of AI Assistant will provide you with answers on that current performance of A. and future plans.

（翻譯）感謝您的提問。關於我們對 SK Broadband IP 交易的想法，我將對這個問題發表評論，然後 SK Broadband 公司規劃辦公室負責人將提供更具體的細節。屆時AI助理的負責人將會為你解答A.目前的表現以及未來的計畫。

SK Broadband continues to expand the basis for media and B2C business through subscriber growth and strengthen growth prospects and competitiveness of the data center and solution business. Based on the synergy between SK Telecom and SK Broadband. Fundamental strengthening of the competitive edge and stable financial structure are expected to continue to contribute to both consolidated earnings and SK Telecom's corporate value.

SK Broadband 繼續透過用戶成長來擴大媒體和 B2C 業務的基礎，並加強資料中心和解決方案業務的成長前景和競爭力。基於SK Telecom和SK Broadband之間的協同作用。預計從根本上加強競爭優勢和穩定財務結構將繼續為 SK Telecom 的合併利潤和企業價值做出貢獻。

Regarding the IPO of SK Broadband we will come up with the most optimal plan based on the goal of realizing the true value of SK Broadband and maximizing corporate value of SK Telecom. So we will continue to we will closely monitor the market situations and determine when and whether to go ahead with the IPO of SK Broadband and see what will be the most appropriate timing and then we will develop the plans and share them with the market.

關於SK Broadband的IPO，我們將以實現SK Broadband的真正價值和SK Telecom的企業價值最大化為目標，制定最優方案。因此，我們將繼續密切關注市場情況，確定何時以及是否繼續進行 SK Broadband 的 IPO，並確定最合適的時機，然後製定計劃並與市場分享。

(Interpreted) I am Choi Hwan-seok, Head of the Corporate Planning Office at SK Broadband. Let me provide you with comments on the outlook for SK Broadband going forward. First of all, we're going to continue to drive the B2C subscriber growth and expand the B2B business centered on data center and enterprise, thereby maintaining the rate of growth similar to the previous year.

(翻譯)我是 SK Broadband 企業規劃室主任崔煥錫。讓我為您提供有關 SK Broadband 未來前景的評論。首先，我們將持續推動B2C用戶成長，並拓展以資料中心和企業為中心的B2B業務，維持與前一年相似的成長率。

And we will not only grow the subscriber base, but also pursue qualitative growth focused on high value business to enhance both the top line and bottom line of the B2C business. Moving on to our Enterprise business, we will achieve growth by capitalizing on new opportunities in the market to expand the fixed line volume, and at the same time, we will further advance the fixed and mobile cooperation structure between SK Telecom and SK Broadband to focus on expanding the business models based on a AI solution.

我們不僅要擴大用戶群，還要專注於高價值業務，實現品質成長，以提高 B2C 業務的營收和利潤。在企業業務方面，我們將利用市場新機會擴大固定線路數量，從而實現成長，同時進一步推進 SK Telecom 和 SK Broadband 之間的固定和行動合作結構，專注於擴展基於 AI 解決方案的業務模式。

For data center, we will pursue a top-line growth through higher utilization of the new data centers while improving the operational efficiency through AI in order to be build the foundations for sustainable growth in the medium to long term.

在資料中心方面，我們將透過提高新資料中心的利用率來追求營收成長，同時透過人工智慧提高營運效率，為中長期永續成長奠定基礎。

(Interpreted) I'm Kim Ji-hyeong, Head of AI assistant. Let me provide comments on the actual performance of A. and future directions. Since the official launch in September 2023 A. cumulative subscribers reached 3.4 million and the growth trend is continuing and the cumulative subscribers grew nearly 300% for the past year, which shows a good performance of A. since official launch.

(翻譯)我是金智亨，AI助理的負責人。讓我對 A. 的實際表現和未來方向提供一些評論。自2023年9月正式上線以來，A.累計用戶已達340萬，且成長趨勢仍在持續，過去一年累計用戶成長近300%，顯示出A.自正式上線以來的良好表現。

After the official launch A. topped the chart in the lifestyle category in both Apple App Store and Google Play Store, and it is still ranked high, and also in the Korean Mobile App Hall of Fame, A. ranked first in the trending app category in the second half of 2023, demonstrating its popularity and usefulness in the market.

正式上線後，A.在Apple App Store和Google Play Store的生活方式類別中均位居榜首，並且排名依然很高，在韓國移動應用名人堂中，A.在2023年下半年的熱門應用類別中排名第一，證明了其在市場上的受歡迎程度和實用性。

We believe that the success of A. is the result of continued effort to deliver value to customers by offering diverse useful services and features such as call recording and summary and fleet management. And we recently released a call interpretation service as part of iPhone call recording function and a conversation playlist creation function. In the first quarter of 2024 the call, interpretation service will be available for other platform as well. And these are receiving good attention in the market.

我們相信，A. 的成功是透過提供各種有用的服務和功能（例如通話記錄和摘要以及車隊管理）不斷努力為客戶提供價值的結果。我們最近發布了一項通話翻譯服務，作為 iPhone 通話錄音功能和對話播放清單建立功能的一部分。2024 年第一季度，通話口譯服務也將在其他平台上推出。這些都受到了市場的良好關注。

And we are collaborating with SK Broadband in the media area to boost the popularity of A. and likewise, A. will continue to encourage customers acquired through communication based services to use other life assistance services of A. by continuing to enhance functions. And we plan to grow the usage volume of A. in 2024 as well and we are developing monetization models based on such traffic. And we are considering various performance indicators on customer usage patterns of A. services and functions. And when our internal discussions are finalized, that we will share them with you and the market.

並且，我們正在與 SK Broadband 在媒體領域進行合作，以提高 A. 的知名度，同樣，A. 也將透過不斷增強功能，繼續鼓勵透過基於通訊的服務獲得的客戶使用 A. 的其他生活援助服務。我們計劃在 2024 年增加 A 的使用量，並且我們正在開發基於此類流量的貨幣化模型。並且我們正在考慮A.服務和功能的客戶使用模式的各種績效指標。當我們的內部討論完成後，我們將與您和市場分享。

(Interpreted) This concludes the earnings conference call for 2023. And if you need further explanation or have additional questions, please contact the IR team anytime. Thank you.

(口譯) 2023 年收益電話會議到此結束。如果您需要進一步解釋或有其他疑問，請隨時聯絡 IR 團隊。謝謝。

Editor^ Portions of this transcript that are marked (Interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

編輯^ 本記錄中標記為（已翻譯）的部分是由現場通話中的翻譯人員朗讀的。翻譯由贊助此活動的公司提供。