Financial Data and Key Metrics Changes - Operating revenue increased by 13.5% year over year, reaching KRW 7,427.4 billion [6] - Operating profit rose by 105.4% year over year, amounting to KRW 1,014.8 billion, supported by balanced growth in the telco business and one-time gains from real estate sales [6] - Net income increased by 78.6% year over year to KRW 733.3 billion, driven by higher operating profit [6] - EBITDA grew by 36.3% year over year, reporting KRW 1,990.7 billion [6] - Operating expenses rose by 5.9% year over year, totaling KRW 6,412.6 billion [7] Business Line Data and Key Metrics Changes - Wireless revenue increased by 0.9% year on year, reporting KRW 1,781.7 billion, with 79.5% of total handset subscribers being 5G subscribers [8] - Fixed line broadband revenue grew by 2.1% year over year, reaching KRW 631.4 billion, driven by Giga Internet subscriber growth [9] - B2B service revenue posted a 4.5% year over year growth, supported by telecom and AI/IT services [11] - AIIT business revenues saw a significant increase of 13.8% year over year [11] - KT Cloud revenue grew by 23% year over year, driven by increased data center usage [12] Market Data and Key Metrics Changes - The company noted that the 5G penetration rate is above 80%, indicating a mature market [21] - The company observed no overheating of competition in the market following the launch of new flagship handsets, although future competition may arise with new iPhone releases [20] Company Strategy and Development Direction - The company is focused on transforming into an AICT company and enhancing corporate value through strategic initiatives [4][13] - A multi-model strategy is being implemented, including partnerships with global tech firms like Microsoft and Palantir to enhance competitiveness in AI services [17] - The company plans to invest KRW 1 trillion in information security over five years to improve customer safety in telecom services [5] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining solid service revenue growth into the second half of the year, despite a significant one-off gain from real estate in Q2 [25] - Concerns were raised about potential increases in commissions and selling-related expenses, but these are linked to earnings performance [26] - The company is committed to maintaining a shareholder-friendly dividend policy, with a declared dividend of KRW 600 per share, a 20% increase year over year [4][27] Other Important Information - The company plans to complete a share buyback of KRW 250 billion and has outlined a future buyback plan totaling KRW 750 billion over the next three years [4][28] Q&A Session Summary Question: Future direction of AI business and impact of handset subsidy repeal - Management highlighted three main strategies for AI: partnerships with global tech firms, a multi-model strategy for AI service development, and leveraging AI capabilities for operational efficiency [17][19] - Regarding the M and P market, management noted that while competition may heat up with new handset launches, it is not expected to be long-lasting due to high 5G penetration and longer handset replacement cycles [20][21] Question: Outlook for the second half of the year and updates on the value plan - Management expressed optimism for continued strong performance in the second half, driven by solid service revenue and improved cost management [25] - The company confirmed its commitment to a shareholder-friendly dividend policy and plans for additional share buybacks as part of its value enhancement program [27][28]

KT 2Q25 Earnings Release Disclaimer This presentation has been prepared by KT Corp.(the "Company") in accordance with K-IFRS. This presentation contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No presentation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information ...