KT (030200) Q1 2026 earnings summary

Executive summary

• Q1 2026 focused on reorganizing growth strategy, management transition, and launching a new midterm shareholder return policy to enhance corporate value.

• Consolidated revenue for 1Q26 was KRW 6,778.4bn, down 1.0% year-over-year, mainly due to a high base effect from a prior-year real estate project and slower wireless business growth.

• Operating profit declined 29.9% year-over-year to KRW 482.7bn, reflecting the absence of one-off real estate gains and increased costs.

• Management continues to focus on advancing cybersecurity, network, and IT infrastructure, and executing a value-up plan.

• Shareholder return policy targets 50% of adjusted net income via cash dividends and share buybacks, with a minimum FY26 dividend guidance of KRW 2,400 per share.

Financial highlights

• Operating revenue decreased by 1.0% year-over-year to KRW 6,778 billion.

• Operating income declined by 29.9% to KRW 482.7 billion, impacted by last year's property sales and higher sales/labor costs.

• 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 amortized sales expenses and increased labor costs.

• Service revenue was KRW 5,733.4bn (+0.6% YoY), while sale of goods fell 8.7% YoY.

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.

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

• Group subsidiaries in real estate, cloud, and content expected to drive improved growth.

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

• FY26 dividend guidance is set at a minimum of KRW 2,400 per share.