KT (030200) investor relations material

Executive summary

• Q1 2026 operating revenue was KRW 6,778.4 billion, with operating profit at KRW 482.7 billion and net profit at KRW 388.3 billion, reflecting a year-over-year decline due to the absence of one-off real estate gains and higher costs.

• Management focused on reorganizing growth strategy, advancing cybersecurity, network, and IT infrastructure, and launching a new midterm shareholder return policy.

• The company maintains a diversified business portfolio across ICT, finance, satellite broadcasting, real estate, and other segments, with ICT contributing the largest share of revenue.

• Shareholder return policy targets 50% of adjusted net income via dividends and share buybacks, with a minimum annual dividend of KRW 2,400 per share for 2026.

Financial highlights

• Operating revenue decreased by 1.0% year-over-year to KRW 6,778.4 billion; operating income declined by 29.9% to KRW 482.7 billion.

• Net income fell 31.5% YoY to KRW 388.3 billion; EBITDA dropped 13.1% to KRW 1,440 billion with a margin of 21.2%.

• Operating expenses rose 2.3% YoY to KRW 6,295.7 billion due to higher selling and labor costs.

• Total assets at March 31, 2026, were KRW 43,510 billion; total equity was KRW 19,994 billion.

• Basic EPS for Q1 2026 was KRW 1,460, down from KRW 2,196 in Q1 2025.

Outlook and guidance

• Full-year operating income is targeted to match last year's adjusted level of around KRW 1.5 trillion, excluding one-off impacts.

• The company reaffirmed its mid-term shareholder return policy, targeting a 50% payout of adjusted net income via dividends and share buybacks, with a minimum annual cash dividend of KRW 2,400 per share for 2026.

• Strategic focus remains on AI/IT revenue growth, business structure innovation, and asset monetization to improve capital efficiency.

• KT Cloud revenue is expected to continue double-digit growth in 2026.

• Strict management of operating expenses, especially sales costs, is planned for Q2 and beyond.