KT (030200) Q2 2025 earnings summary

Executive summary

• Achieved strong revenue and operating profit growth in Q2 2025, advancing transformation into an AICT company and strengthening partnerships, notably with Microsoft.

• Corporate value enhancement plan progressing, including a ₩250 billion share buyback, a 20% year-over-year dividend increase, and additional buybacks and cancellations announced.

• Significant AI business expansion with proprietary LLM launches, Microsoft collaboration, and public sector project wins.

Financial highlights

• Operating revenue rose 13.5% year-over-year to ₩7.4274 trillion.

• Operating profit surged 105.4% year-over-year to ₩1.0148 trillion, aided by one-time real estate gains.

• Net income increased 78.6% year-over-year to ₩733.3 billion.

• EBITDA up 36.3% year-over-year to ₩1.9907 trillion; EBITDA margin improved to 26.8% from 21.5%.

• Operating expenses grew 5.9% year-over-year to ₩6.4126 trillion, supporting margin expansion.

Outlook and guidance

• Expectation to maintain strong service revenue momentum into the second half, despite Q2's one-off real estate gain.

• FY2028 targets include consolidated ROE of 9–10% and OP margin of 9%, with plans to triple AI/IT revenue from 2023 levels.

• Cost management remains a focus, with labor and depreciation costs under control.

• Dividend policy based on 50% of adjusted net profit, with ₩600 per share already declared for Q2.

• Additional share buybacks totaling ₩1 trillion planned over three years.