KT · KT Corporation

KT Corporation's 1Q26 results showed consolidated revenue declining 1.0% YoY to KRW 6,778.4 billion, primarily due to slower wireless business growth and the base effect from a significant real estate project in the prior year. Service revenue edged up 0.6% YoY to KRW 5,733.4 billion, supported by modest gains in fixed-line broadband (+1.8%) and media (+1.3%), while wireless service revenue grew 0.4% amid returning net subscriber additions post early termination fee waiver and 82.7% 5G penetration. Operating profit fell sharply 29.9% YoY to KRW 482.7 billion (7.1% margin), driven by the real estate base effect and higher operating expenses (+2.3% YoY), including elevated selling expenses (+9.1%) and labor costs (+4.6%), partially offset by lower depreciation. EBITDA decreased 13.1% to KRW 1,440.0 billion (21.2% margin). On a separate basis, KT's revenue rose 3.3% YoY to KRW 4,834.6 billion with operating profit down 21.5% to KRW 313.9 billion. Balance sheet strengthened with net debt/equity at 39.9% (-3.9%p YoY) following lower borrowings. CAPEX execution was KRW 304.2 billion (KT separate) plus KRW 59.5 billion (major subsidiaries). Management highlighted FY26-28 strategy focusing on AX growth drivers, cybersecurity, and infrastructure, alongside a value-up plan positioning KT as a high-dividend AX platform company. Shareholder returns include minimum KRW 2,400 per share for FY26 via cash dividends (1Q26 DPS KRW 600, record 2026-05-27, payment 2026-06-11), share buybacks, and cancellations, based on 50% of adjusted net income excluding non-recurring items.