KT (030200) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated revenue of KRW 26.43 trillion in FY 2024, up 0.2% year-on-year, driven by balanced B2C/B2B growth, CT, real estate, and AX segments.

• Strategic partnership with Microsoft accelerated AICT transformation, focusing on workforce innovation and rationalizing underperforming businesses.

• Workforce restructuring led to significant one-off labor costs, causing operating profit to drop 50.9% to KRW 809.5 billion and net profit to fall 54.5% to KRW 450.1 billion.

• Announced FY2024 total dividend per share of KRW 2,000–2,001 and a KRW 250 billion share buyback, with a plan to buy back and cancel KRW 1 trillion by 2028.

• Strategic focus on AICT transformation, B2B AX growth, and streamlining low-profit businesses.

Financial highlights

• Operating revenue rose 0.2% year-on-year to KRW 26.43 trillion; consolidated service revenue was KRW 23,005.9 billion, and sale of goods up 1.3% to KRW 3,425.2 billion.

• Operating profit dropped 50.9% to KRW 809.5 billion due to one-off labor costs; adjusted OP (excluding one-offs) increased 9.8% to KRW 1.81 trillion.

• Net profit fell 54.5% to KRW 450.1 billion; EBITDA decreased 14.2% to KRW 4.69 trillion; EBITDA margin dropped to 17.7%.

• Operating expenses increased 3.6% year-on-year, mainly from a 23.6% rise in labor costs and higher depreciation.

• 2024 total CapEx: KRW 3.12 trillion (group), KRW 2,299.9 billion (KT separate), KRW 823.5 billion (subsidiaries).

Outlook and guidance

• 2025 consolidated revenue target set at over KRW 28 trillion.

• Focus on accelerating AICT transformation, launching Korea-specialized AI models and Secure Public Cloud in partnership with Microsoft.

• Plans to triple AI/IT revenue by FY2028 compared to 2023; double-digit AI/IT revenue growth targeted for 2025.

• Real estate development profits to be recognized in Q1 and Q2 2025 as residents move in.