KT(US:KT)2025-11-07 07:00Financial Data and Key Metrics Changes - Operating revenue increased by 7.1% year over year, reaching KRW 7.1267 trillion, driven by sustained growth from core businesses including telecom, real estate, cloud, and data center [31] - Operating profit rose by 16% year over year to KRW 538.2 billion, with net income up 16.2% year over year at KRW 445.3 billion [33][31] - EBITDA increased by 5.2% year over year, reaching KRW 1.5039 trillion [33] Business Line Data and Key Metrics Changes - Wireless revenue grew by 4% year over year to KRW 1,809.6 billion, supported by the expansion of the 5G subscriber base, which reached a penetration rate of 80.7% [44][46] - Broadband internet revenue increased by 2.3% year over year to KRW 636.7 billion, driven by GiGA Internet subscriber growth [48] - Media business revenue grew by 3.1% year over year, attributed to higher IPTV subscriber net additions and premium plan sales [50] - B2B service revenue reported a slight growth of 0.7% year over year, despite streamlining low-margin businesses [54] - AI and IT business revenue decreased by 5.7% year over year due to structural enhancements, although there were project wins from large customers [56] - KT cloud revenue surged by 20.3% year over year, driven by increased data center utilization and demand for AI cloud services [60] - KT Estate revenue rose by 23.9% year over year, supported by strong hotel business performance and new development projects [62] Market Data and Key Metrics Changes - The net debt ratio increased by 4.2 percentage points year over year to 34.5% [40] - Total capital expenditures (CapEx) for KT and its main subsidiaries reached KRW 1,963.7 billion, with KT's separate basis CapEx at KRW 1,329.5 billion [42] Company Strategy and Development Direction - KT is focusing on transforming into an AICT (AI, Cloud, and Telecom) company, collaborating with global tech firms to launch specific services and enhance its core portfolio [15][17] - The company is implementing a corporate value enhancement plan, which includes streamlining low-margin businesses and liquidating non-core assets [25] - KT has initiated a comprehensive plan to compensate customers affected by unauthorized micropayments and data breaches, including free USIM replacements [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for Q4 due to seasonality and uncertainties related to customer compensation measures following the hacking incident [75] - Despite challenges, management believes that the company can achieve year-over-year growth for the full year 2025, supported by solid performance in Q3 and ongoing efforts to drive top-line growth [78][79] Other Important Information - The third quarter dividend was set at KRW 601 per share, maintaining a 20% higher payout year over year [23] - A share buyback plan amounting to KRW 1 trillion was announced, with KRW 250 billion already executed [27][82] Q&A Session Summary Question: Outlook for Q4 and dividend payment - Management acknowledged the usual seasonality in Q4 and uncertainties due to customer compensation, taking a conservative stance on forecasts while aiming to minimize impacts [75][80] Question: Financial impact of the hacking incident and compensation measures - Management confirmed that compensation costs related to the unauthorized micropayment incident will be recognized in Q4, including USIM replacements and other expenses [91][93] Question: CEO appointment process and its impact on the value-up program - The CEO appointment process involves a director candidate recommendation committee and will not affect the ongoing value-up plan, which is a commitment to the market [100][106]