KT(US:KT)2026-02-10 07:00Financial Data and Key Metrics Changes - Operating revenue increased by 6.9% year-on-year, reaching KRW 28,244.2 billion [26] - Operating profit surged by 205% year-on-year to KRW 2,469.1 billion, driven by core business performance and one-off gains [26] - Net income rose by 340.4% year-on-year to KRW 1,836.8 billion, with EBITDA increasing by 35.5% to KRW 6,349.3 billion [28] - Operating expenses remained flat year-on-year at KRW 25,775.1 billion due to lower labor costs and efficient spending [30] - Debt-to-equity ratio at the end of 2025 was 120.7%, with net debt-to-equity ratio decreasing to 37.4% [32] Business Line Data and Key Metrics Changes - Wireless revenue grew by 2.8% year-on-year to KRW 7,155.4 billion, supported by subscriber expansion in 5G, which reached a penetration rate of 81.8% [36] - Broadband revenue increased by 1.9% year-on-year to KRW 2,533.5 billion, driven by growth in giga subscribers and value-added services [38] - Media business revenue rose by 1.7% year-on-year, attributed to higher IPTV subscriber additions [38] - B2B service revenue grew by 1.3% year-on-year, with AI and IT business growing by 3.1% [42] - KT Cloud revenue increased by 27.4% year-on-year to KRW 997.5 billion, reflecting strong demand for data center services [44] Market Data and Key Metrics Changes - The company is focusing on enhancing its market position in the AI and IT sectors, with significant investments planned for security and infrastructure [19][48] - The overall B2B market growth is projected to be stable, with KT Cloud's growth expected to continue at a high rate [86] Company Strategy and Development Direction - The company aims to solidify its fundamentals and regain customer trust following a data breach incident, with a focus on cybersecurity and network resilience [3][13] - KT plans to implement a corporate value enhancement plan, including a KRW 250 billion share buyback and increased dividends [6][22] - The new CEO is expected to maintain the company's growth strategy while potentially introducing tactical changes reflecting his philosophy [69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving better performance in 2026 compared to 2025, despite challenges from the data breach [61] - The company is committed to improving operational efficiency in the wireless business and expects stable growth in B2B services [80][83] Other Important Information - The company has set a year-end dividend of KRW 2,400 per share, a 20% increase from the previous year [6] - A new CEO has been appointed, expected to bring expertise in B2B and future technologies [11] Q&A Session Summary Question: Financial impact of customer compensation package and future shareholder return stance - The financial impact of the customer appreciation package is estimated at KRW 450 billion, but not all will be booked as costs [56] - The company plans to maintain a progressive shareholder return policy, with the new CEO and board finalizing future plans [65][67] Question: Outlook for wireless business growth and B2B performance - Approximately 230,000 subscribers left during the cancellation fee waiver period, but net additions were still positive [78] - B2B growth is slower compared to peers, but combined revenue growth, including KT Cloud, shows a 6% increase year-on-year [85][86]