Financial Data and Key Metrics Changes - Consolidated revenue decreased by 1.9% year on year to KRW 43.8388 trillion due to net subscriber losses and the suspension of new subscriber sign-ups following a cybersecurity incident [5][6] - Operating income fell by 37.1% year on year to KRW 338.3 billion, while net income dropped by 76.2% year on year to KRW 83.2 billion [5][6] - The financial impact of the cybersecurity incident is expected to be more pronounced in the second half of the year, leading to a revised annual revenue guidance from KRW 17.8 trillion to KRW 17 trillion [19][24] Business Line Data and Key Metrics Changes - Mobile Network Operator (MNO) revenue declined due to subscriber churn, with a loss of 750,000 handset subscribers from March to June, resulting in a KRW 38.7 billion drop in MNO revenue quarter on quarter [18] - The AI business revenue grew by 13.9% year on year, partially offsetting declines in telecom revenue, with AIDC revenue increasing by 13.3% year on year to KRW 108.7 billion [7] - The number of 5G subscribers decreased by approximately 220,000 quarter on quarter to 17,020,000, alongside losses in broadband and IPTV subscribers [6][7] Market Data and Key Metrics Changes - The cybersecurity incident led to a suspension of new subscriber acquisitions for over a month, impacting the overall subscriber base [6] - The company is implementing a customer appreciation package worth KRW 500 billion to minimize customer churn during the incident recovery period [26] Company Strategy and Development Direction - The company aims to strengthen its core telecom business while continuing to grow its AI business, with plans to invest KRW 700 billion over the next five years in information protection innovation [4][10] - A hyperscale AI data center is being established in collaboration with AWS, expected to start operations in 2027, with projected annual sales of approximately KRW 1 trillion [9][33] - The company is focused on regaining customer trust through the accountability and commitment program, which includes various customer assurance measures [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant financial impact of the cybersecurity incident on earnings and emphasized the importance of restoring customer trust as a foundation for future growth [19][20] - The company anticipates a decline in revenue and operating profit in the upcoming quarters due to the implementation of customer appreciation measures [19][24] Other Important Information - The Board of Directors set the second quarter dividend per share at KRW 831, with future dividends to be discussed based on visibility of annual earnings [24][25] - The company is actively participating in government-led sovereign AI projects, aiming to position itself as a key player in the national AI ecosystem [37] Q&A Session Summary Question: Specific response measures to the cybersecurity incident and financial impact - Management detailed the introduction of a customer assurance package and a KRW 700 billion investment plan for information protection innovation, acknowledging the financial impact on MNO revenue and increased costs due to the incident [14][18] Question: Full year dividend guidance and strategies to win back customers - The company confirmed the second quarter dividend and stated that future dividends will be discussed based on earnings visibility, while outlining strategies to regain customer trust through enhanced security measures and customer appreciation packages [24][26] Question: Investment plans for the AI data center and impact on CapEx guidance - Management discussed the investment plans for the Ulsan AI data center, indicating that total CapEx is expected to rise nearly 10% year over year, while maintaining stable trends in combined CapEx [33][34]

Financial Data and Key Metrics Changes - The company achieved record revenues of $513 million, representing a 26.7% year-over-year increase on a reported basis and a 24.7% increase on a constant currency basis [26][28] - Adjusted EBITDA margin increased by 83 basis points to 54.2% compared to the previous year [28] - Free cash flow reached approximately $952 million for the trailing twelve months [35] Business Line Data and Key Metrics Changes - The rates business produced record revenue driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenues increased significantly, with double-digit growth in credit derivatives and municipal bonds [15] - Equities revenue grew by 50% year-over-year, led by the global ETF and equity derivatives business [8] - Money markets revenue growth was supported by the addition of ICD and record quarterly revenues across global repos [8] Market Data and Key Metrics Changes - International business revenue grew by 41% year-over-year, with strong performance in emerging markets (EM) and Asia-Pacific (APAC) [7][21] - U.S. Treasury market share declined to 22% year-over-year, attributed to a shift towards voice-centric trades [12] - Global swaps revenues grew over 45% year-over-year, with international swaps achieving record revenues growing over 55% [21][23] Company Strategy and Development Direction - The company is focused on expanding its electronic trading capabilities and enhancing client engagement through innovative solutions [6][39] - Continued investment in digital assets and emerging markets credit is a strategic priority [20][36] - The company aims to deepen penetration in the U.S. credit market while expanding its international footprint [20][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth for 2025, driven by strong client engagement and market dynamics [5][35] - The company noted that recent market volatility has reinforced the value of electronic trading [24] - Management highlighted the importance of adapting to client needs and enhancing trading workflows [39][55] Other Important Information - The company declared a quarterly dividend of $0.12 per Class A and Class B shares, up 20% year-over-year [35] - Adjusted expenses increased by 24% on a reported basis, reflecting investments in technology and client relationship development [32] Q&A Session Summary Question: Market share trends in U.S. Treasuries - Management acknowledged a decline in market share due to a shift towards voice trading and highlighted efforts to address this through innovative protocols [43][49] Question: Client reaction to new buy-side fees in high yield - Management reported an increase in institutional high yield share post-implementation of buy-side fees, indicating positive client reception [61][64] Question: Progress in cross-selling additional products through ICD - Management noted high client retention and modest revenue growth, with ongoing efforts to expand product offerings and client reach [72][80] Question: Fee per million dynamics in the rates business - Management expressed optimism about maintaining or modestly growing fee per million in swaps, driven by higher-priced products and protocols [84][86] Question: Growth opportunities in international markets - Management highlighted strong growth in international revenue, particularly in Europe and Asia, with a focus on expanding product offerings [96][100] Question: Impact of stablecoins and digital assets on the market - Management is bullish on digital assets and sees stablecoins as potential game changers, exploring tokenized versions based on client demand [107]

Financial Data and Key Metrics Changes - The company achieved record revenues of $513 million, representing a 26.7% year-over-year increase on a reported basis and a 24.7% increase on a constant currency basis [27] - Adjusted EBITDA margin increased by 83 basis points to 54.2% compared to the previous year [29] - Free cash flow reached approximately $952 million for the trailing twelve months [36] Business Line Data and Key Metrics Changes - The rates business produced record revenue driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenues increased significantly, led by global corporate bonds, munis, and credit derivatives [8] - Equities revenue grew by 50% year-over-year, primarily due to the global ETF and equity derivatives business [9] - Money markets revenue growth was supported by the addition of ICD and record quarterly revenues across global repos [8] Market Data and Key Metrics Changes - International business revenue grew by 41% year-over-year, with strong performance in emerging markets (EM) and Asia-Pacific (APAC) [7] - U.S. Treasury market share declined to 22% year-over-year, attributed to a shift towards voice-centric trades [13] - Global swaps revenues increased over 45% year-over-year, with international swaps achieving record revenues growing over 55% [22][24] Company Strategy and Development Direction - The company is focused on expanding its electronic trading capabilities and enhancing client engagement through innovative solutions [6] - Strategic initiatives include investing in digital assets and expanding into emerging markets [21][22] - The company aims to deepen its penetration in U.S. Credit and broaden its liquidity provider network [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth for 2025, despite market volatility and economic challenges [5] - The company anticipates continued strong client engagement and innovation in electronic trading, particularly in fixed income markets [40] - Management highlighted the importance of adapting to market changes and enhancing client workflows to maintain competitive advantage [54] Other Important Information - The company declared a quarterly dividend of $0.12 per Class A and Class B shares, up 20% year-over-year [36] - Adjusted expenses increased by 24% on a reported basis, reflecting investments in technology and client relationship development [33] Q&A Session Summary Question: Market share trends in U.S. Treasuries - Management acknowledged a decline in market share due to a shift towards voice trading and highlighted efforts to address this through innovative protocols [44][50] Question: Client reaction to new buy-side fees in high yield - Management reported an increase in institutional high yield share since the rollout of buy-side fees, indicating positive client reception [59][61] Question: Progress in cross-selling additional products through ICD - Management noted high client retention and modest revenue growth, with ongoing efforts to expand product offerings and client reach [69][72] Question: Fee per million dynamics in the rates business - Management expressed optimism about maintaining or modestly growing fee per million in swaps, driven by higher-priced products and protocols [80][82] Question: Growth opportunities in international markets - Management highlighted strong growth in international revenue, particularly in Europe and Asia, with a focus on expanding product offerings [91][92] Question: Impact of stablecoins and digital assets on the market - Management is bullish on digital assets and sees stablecoins as potential game changers, with ongoing exploration of tokenized products [102][104]