KT (030200) Q3 2026 earnings summary

Executive summary

• Q3 operating revenue fell 1.8% YoY and operating income 6.1%, reflecting a prior-year real-estate gain comparison and lower wireless revenue after the customer appreciation program.

• Recovery priorities included wireless subscriber and ARPU turnaround, DC-led B2B growth, portfolio expansion, and stable shareholder returns.

• AX revenue grew 9.8% YoY in Q3 and cumulative revenue rose 11.9%; the 2028 target is at least 2x 2025 revenue.

Financial highlights

• Operating revenue was KRW 6,997.5bn, down 1.8% YoY and up 4.8% QoQ; service revenue was KRW 5,880.9bn, down 0.7% YoY.

• Operating income was KRW 505.3bn, down 6.1% YoY and 22.1% QoQ; net income was KRW 367.3bn, down 17.5% YoY and 23.6% QoQ.

• EBITDA was KRW 1,428.3bn, down 5.0% YoY; EBITDA margin was 20.4%, down 0.7pp YoY.

• Excluding the prior-year NCP real-estate development gain, operating profit increased 3.5% YoY and net income declined 7.1%.

• Income before tax was KRW 499.3bn, down 15.9% YoY; non-operating result shifted to a KRW 6.0bn loss from KRW 55.3bn income in 3Q25.

Outlook and guidance

• FY2028 targets include ROE of 9%–10%, operating margin of 9%+, and AX revenue at least 2x the 2025 level.

• Year-end priorities are core telecom recovery, converting AX opportunities into results, and improving the bottom line through efficient spending; 2027 growth is expected from telecom recovery and B2B/AX pipeline conversion.

• B2B cumulative order value rose more than 20% YoY through Q3; further growth is expected by year-end, with orders converting into revenue sequentially.

• AIDC capacity additions target more than 1 GW by 2031, demand-led, with 80% planned as leased capacity and 20% owned facilities.