KT (030200) Q1 2025 earnings summary

Executive summary

• Consolidated revenue reached KRW 6,845.1bn, up 2.9% year-over-year, driven by telco, real estate, and cloud/data center growth.

• Operating profit surged 36.0% year-over-year to KRW 688.8bn, aided by real estate sales and profitability initiatives.

• Net income increased 44.2% year-over-year to KRW 566.8bn.

• Quarterly dividend of KRW 600 per share (+20% YoY) and a KRW 250bn share buyback and cancellation announced.

• Accelerated AI/IT transformation with AI/IT revenue up 10.2% YoY and strategic partnerships with Microsoft and Palantir.

Financial highlights

• Service revenue slightly declined by 0.4% YoY, while sale of goods rose 22.8% YoY.

• EBITDA grew 12.0% YoY to KRW 1,657.4bn, with margin improving to 24.2%.

• Operating expenses remained flat YoY, with stable depreciation and selling expenses.

• Net debt increased 18.1% sequentially to KRW 8,036.5bn; net debt/equity ratio rose to 43.8%.

• 1Q25 total CAPEX: KRW 300.0bn (KT separate), KRW 351.8bn (subsidiaries).

Outlook and guidance

• Launch of Korean AI model and KT SPC based on Microsoft partnership expected in June 2025.

• Continued focus on AI/IT revenue growth and media business innovation.

• Ongoing execution of value-up plan, including non-core asset liquidation and streamlining low-margin businesses.