KT Corporation

KT reported Q1 2026 operating revenue of KRW 6,778.4 billion, down 1.0% year over year. Operating income was KRW 482.7 billion, down 29.9%, and net income was KRW 388.3 billion, down 31.5%; EBITDA fell 13.1% to KRW 1,440 billion. Operating expenses rose 2.3% year over year to KRW 6,295.7 billion. On the balance sheet, debt-to-equity was 117.6% and net debt-to-equity was 39.9%. Q1 capex was KRW 363.7 billion, including KRW 304.2 billion on a stand-alone basis. Segment highlights included wireless service revenue up 0.4% to KRW 1,683 billion, broadband revenue up 1.8% to KRW 640.2 billion, and B2B revenue down 2.2%. Management did not give explicit next-quarter revenue or EPS guidance, but said it expects full-year operating income to be roughly similar to last year’s adjusted level of around KRW 1.5 trillion, excluding the impact of the data breach incident. It also said KT Cloud can continue double-digit revenue growth this year and reiterated the KRW 250 billion share buyback to be completed by September.

The CEO commentary, delivered through management, framed KT’s strategy as becoming an AX platform company built on two pillars: strong fundamentals and solid growth. The company said it wants to regain customer trust through better security, network, and IT infrastructure, while expanding AX-based growth in B2C, B2B, and new sectors. Tone was constructive and reform-focused, with repeated emphasis on execution, customer protection, and long-term value creation.

The CFO highlighted that Q1 profitability was weighed down by last year’s Gwangjin District property-sale base effect, higher sales and labor costs, and amortization of sales expenses. He said operating income declined to KRW 482.7 billion, net income to KRW 388.3 billion, EBITDA to KRW 1,440 billion, and capex to KRW 363.7 billion, while net debt-to-equity improved to 39.9%. On capital allocation, he reaffirmed the 2026-2028 shareholder return policy of 50% of stand-alone adjusted net income, the minimum 2026 dividend of KRW 2,400 per share, the Q1 dividend of KRW 600, and the KRW 250 billion buyback program.

Analysts focused on the new CEO’s strategy, full-year operating income, shareholder returns, wireless growth, and the AIDC/data center buildout. Management said the new CEO’s vision is to accelerate AX innovation while balancing strong fundamentals and solid growth, and that it is reviewing the timing and format for market communication from the CEO. On profitability, management said full-year operating income should be similar to last year’s adjusted level of around KRW 1.5 trillion, with stricter expense control in Q2. On wireless, management said January’s subscriber decline was being offset by net additions since February and that it expects an efficiency-and-agility approach rather than heavy marketing spend. On AIDC, management described customer needs around power/heat management, clustering, and reclustering, and said KT has an advantage from its IDC track record and being first in Korea to commercialize liquid-cooling data centers.