You also asked a question about the plans for AI investments. As was the case of our investment in Anthropic last year, when we see opportunities that are very much in line with our AI strategy and where we can create synergies, we will make reasonable and various types of investments for AI. As for specifics on what companies or how much investment or when, we have not yet finalized on these details. But we are going to continue to approach them from an enterprise or a company-wide perspective. And we will be prudent and careful in making decisions regarding these investments in consideration of credibility and the size of resources available. Thank you.
Operator: The next question will be presented by Eun Jung Shin from DB Financial Investment.
Eun Jung Shin: I would like to ask two questions. When I look at the IR material, I can see that among your MNO services, your roaming usage is constantly on the rise. So if there are any specific statistics that you can share with us regarding roaming, I would appreciate that. I would also like to understand your outlook on your roaming business. The second question has to do with your growing enterprise business. What was the actual result for the first quarter? And what is your annual or full year outlook on your enterprise business?
Yang-Seob Kim: Thank you for your questions. I would like to address your question on our roaming business and then the Head of the Enterprise Business Strategy Office will address your second question on the enterprise business. So now I’d like to comment on the actual results of the roaming service and outlook. In 2023, the outbound travel was only about 70% of the level of 2019. However, the roaming usage increased by 1.5x. We believe that this roaming usage increase was mainly thanks to the expansion of the customers, thanks to marketing campaigns to reduce the financial burdens for customers, including 50% off promotion for the first time roaming users and 50% off for the youth and more data provision for the same price plans as well as differentiated services, such as the borrow call plan that more than 75% of the roaming price plan customers are using.
The outlook for roaming business is pretty bright because 2024 is expected to be the first year since the pandemic when outbound travel will reach the 2019 level. Thanks to the family roaming and 50% off promotion for December, the number of roaming users in the first quarter grew 1.6x year-over-year and compared to the first quarter of 2019. So this year, roaming usage growth is expected to be driven by the family roaming service utilized by more than 70% of households that use roaming, as well as increased roaming usage by Youth 0 plan subscribers that enjoy 50% off for roaming at all times. In particular, the family roaming subscribers are constantly on the rise from 280,000 in the first quarter of 2023 to the — in the fourth quarter of 2023 to 410,000 in the first quarter of 2024, so up 46% Q-on-Q and with a high level of customer satisfaction, the semi roaming service has become a major SK Telecom roaming product with a cumulative number of users standing at 970,000 since it was launched in June 2023.
And so going forward, we are planning to offer promotions for first-time users to experience roaming service without much burden and launch differentiated roaming products in order to continue to attract new customers. Thank you.
Unidentified Company Representative: I am [Bae Jae-joon], Head of the Enterprise Business Strategy Office. I’d like to address your question on our enterprise business. In the first quarter, enterprise revenue posted KRW 415.4 billion, up 9% year-over-year, thanks to the increase in data center utilization rates and cloud contracts. The data center business continues to grow on a quarter-over-quarter basis on the back of increased utilization of new data centers. So the annual data center revenue for 2024 is expected to record a similar growth rate as last year. And we are also in the process of establishing new data centers in the Seoul metropolitan area to become Korea’s #1 data center provider by doubling our capacity to more than 200 megawatts by 2030.
And the cloud business will focus on growing multi-cloud business and expanding AI cloud business based on higher demand for AI cloud brought on by the popularity of ChatGPT. And for MSP, we will continue to support our transition to multi-cloud, and we will utilize our own cost optimization technology to gain contracts from big accounts to achieve meaningful scale up. The enterprise AI business growth has been driven by the increased contracts for AICC, which is a transition from the traditional IPCC. And we are also trying to respond preemptively to the upcoming trend where AI is utilized for B2B market. So we recently launched new products, including TransTalker, an AI simultaneous interpretation solution that supports 13 languages, SK Telecom AI CCaaS, a subscription-based AI contact center service and AI Copywriter that can generate advertising copies.
So we are planning to continue to identify new opportunities and capture them and scale up our business by actively targeting expected AI demands in the B2B market.
Hee Jun Chung: Now this concludes the earnings conference call for the first quarter of 2024. If you need further explanations or have additional questions, please contact IR any time. Thank you.
