KT Corporation Q4 FY2025 earnings call

• Apologized to shareholders and customers for data breach incident, committed to regaining trust. • 2025 annual performance saw revenue and operating profit growth from core businesses. • Launched new products in collaboration with global big tech companies, explored AX market. • Opened Gasan AI data center. • 2025 year-end dividend set at KRW 600 per share, DPS increased 20% to KRW 2,400. • Planning KRW 250 billion share buyback and cancellation. • KT Alpha and Millie's Library have corporate value plans. • New CEO expected to take office, known for B2B and future tech expertise. • Implementing structural improvements in security framework, planning KRW 1 trillion investment in security over 5 years.

Wireless revenue was up 2.8% on year to KRW 7,155.4 billion, with 5G penetration at 81.8%. Broadband revenue posted 1.9% year-over-year growth to KRW 2,533.5 billion. Media business revenue grew 1.7% on year. Home Telephony revenue was down 5.8% year-over-year to KRW 658.9 billion. B2B service revenue was up 1.3% year-over-year. KT Cloud revenue increased 27.4% year-on-year to KRW 997.5 billion. KT Estate revenue was up 15.9% year-on-year to KRW 719.3 billion.

• 2026 earnings expected to be better than 2025. • New CEO and BoD to finalize 2026 shareholder return plan, expected to be in line with past stance. • KT Cloud's growth trend expected to continue in 2026.

• Data breach incident caused temporary financial impact and loss of customer trust. • Customer compensation package may lead to short-term cost increase.

Q: What is the financial impact of the customer compensation package regarding the data breach incident?

A: Benefit to customers amounts to about KRW 450 billion, with cost booked in 2025 and appropriate accounting treatment for 2026 to be determined, but 2026 earnings expected better than 2025.

Q: Will the incoming new CEO keep to the previous shareholder return stance?

A: New CEO's plan to be finalized by BoD, expected to be in line with past stance, and strategic approach not expected to change significantly.

Q: Outlook for wireless business growth?

A: 14 days of cancellation fee waiver led to 230,000 subscribers leaving, but net addition of subscribers created revenue for 2026, no high double-digit growth expected, focus on efficiency measures.

Q: Reason for slower B2B growth compared to peers and outlook?

A: B2B includes enterprise Internet, lease line, data center, AI business; combining KT Cloud revenue shows 6% growth, KT Cloud separate basis growth was 27.4% and expected to continue in 2026