KT Corporation Q2 FY2025 earnings call

• KT continued to drive revenue and operating profit growth while transforming into an AICT company. - Completed KRW 250 billion share buyback on August 13. - Q2 dividend set at KRW 600 per share, a 20% year-over-year increase; shareholder-friendly dividend system implemented. - Responded to AX demand, won large-scale projects; launched KT's proprietary LLM, Mi:dm2.0; plan to complete AI full lineup. - Plan to invest KRW 1 trillion in information security over 5 years.

Wireless revenue increased 0.9% year-on-year to KRW 1,781.7 billion. 5G subscribers accounted for 79.5% of total handset subscribers. Fixed line business: Broadband revenue grew 2.1% year-over-year to KRW 631.4 billion; Media business had 0.8% growth year-over-year; Home telephony revenue was KRW 176.2 billion, up 0.4% year-on-year. B2B services revenue posted 4.5% year-on-year growth, with AI IT business revenue up 13.8% year-over-year. Subsidiaries: BC Card revenue fell 6.9% year-on-year to KRW 909.8 billion; Content subsidiaries had 6% year-on-year revenue growth; KT Cloud revenue grew 23% year-on-year; KT Estate revenue increased 2.0% year-on-year.

• Plan to complete KRW 250 billion share buyback on August 13. - Q2 dividend of KRW 600 per share, 20% year-over-year increase. - Expect to sustain solid service revenue uptrend in the second half of the year. - Value-up plan includes KRW 1 trillion share buyback over 3 years, with KRW 250 billion already completed.

• Possible overheating of competition in the MNP market with iPhone launches, but not long-lasting due to high 5G penetration and longer handset replacement cycle. - Slight risk on commissions and selling-related expenses.

Q: On AI business direction going forward and MNP market following repeal of Handset Subsidy Act.

A: Regarding AI, focus on partnerships with global big techs, multi-model strategy, and leveraging AI in services. Regarding MNP market, competition not long-lasting due to 5G penetration above 80% and longer handset replacement cycle.

Q: Second half outlook and value-up plan update.

A: Expect to sustain solid service revenue uptrend in H2. Dividend per share KRW 600, value-up plan includes KRW 1 trillion share buyback over 3 years, with KRW 250 billion already completed.