Financial Data and Key Metrics Changes - Docebo's Annual Recurring Revenue (ARR) increased by $2.5 million sequentially, reflecting a year-over-year growth of 14% when excluding the Dayforce business [5][7] - The company achieved a 20% EBITDA margin, marking a significant milestone in its financial performance [39][64] Business Line Data and Key Metrics Changes - The mid-market business exceeded performance expectations, benefiting from leadership changes and improved processes [7][8] - Core business retention improved, contributing positively to overall performance despite accelerated churn with Dayforce [8][32] Market Data and Key Metrics Changes - EMEA performance exceeded expectations with significant new customer acquisitions during the quarter [8] - The company is seeing increased interest in its offerings from state and local government sectors, driven by its FedRAMP certification [11][12] Company Strategy and Development Direction - Docebo is focusing on diversifying its revenue streams and enhancing its product offerings, particularly in AI capabilities [28][29] - The company is investing in partnerships with system integrators like Deloitte and Accenture to enhance its market penetration and support complex implementations [60][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for federal contracts despite the government shutdown, indicating that it has not significantly impacted their business [11][17] - The company anticipates continued growth in the mid-market and enterprise segments, with expectations for a strong Q4 [19][78] Other Important Information - The Dayforce wind-down is expected to reduce its contribution to total revenues to approximately 3.5-4.5% in 2026 and become immaterial thereafter [25] - The introduction of AI credits is seen as a potential driver for future revenue growth and customer retention [81] Q&A Session Summary Question: Can you unpack the components of ARR growth? - Management confirmed a $2.5 million sequential increase in ARR, with a 14% growth year-over-year excluding Dayforce [5][7] Question: How is the FedRAMP initiative progressing? - The company has secured two new federal customers earlier than expected, indicating strong momentum in this area [10][11] Question: What is the outlook for the enterprise segment? - The enterprise segment continues to grow, with notable wins and expectations for a strong Q4 [19][78] Question: Can you provide details on the Dayforce wind-down? - The Dayforce contribution to revenues is expected to decline significantly over the next few years, with ongoing growth in other areas [25][44] Question: How is AI being integrated into the product offerings? - AI capabilities are being infused throughout the product, with a focus on enhancing customer experience and retention [28][29] Question: What is the impact of the AWS contract roll-off on ARR? - The AWS contract is expected to result in a $4 million hit to ARR, effective December 31 [74] Question: How are partnerships with system integrators evolving? - The company is strengthening relationships with major system integrators to enhance market presence and support complex implementations [60][84]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported modified EBITDA of approximately $580 million and adjusted EBITDA of approximately $550 million, with attendance of 21.1 million guests and revenues of $1.32 billion [7][8] - Adjusted EBITDA was essentially flat year-over-year, with attendance up 1% and revenues down 2% [7][8] - The company expects full-year adjusted EBITDA to be in the range of $780 million to $805 million, reflecting a significant downward revision from earlier guidance [19][20] Business Line Data and Key Metrics Changes - Certain parks representing approximately 70% of property-level EBITDA have continued to outperform, while those representing roughly 30% have underperformed [9][10] - The outperforming parks saw a double-digit increase in modified EBITDA during Q3, driven by a 5% increase in combined attendance [12][13] - Underperforming parks experienced a 5% decline in attendance, which negatively impacted their EBITDA [12][13] Market Data and Key Metrics Changes - Attendance in September declined approximately 5%, or roughly 160,000 visits from the previous year, leading to a 5% decline in net revenues for that month [8][12] - Preliminary results for October indicated an 11% decline in attendance compared to the previous year, but a 7% increase when compared to October 2022 [17][18] Company Strategy and Development Direction - The company is focusing on optimizing revenues, operating costs, and capital expenditures, particularly in underperforming parks [10][12] - There is an ongoing evaluation of underperforming parks to determine if they should be classified as non-core and potentially monetized [10][16] - The company plans to reassess its marketing approach and improve the allocation of marketing spend by park and channel [22][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 has been a challenging year, but expressed confidence in the underlying strength of the business and the potential for future success [4][5] - The company is committed to making decisions that strengthen its long-term health, even if those decisions are difficult [16][24] - Management emphasized the importance of learning from 2025 to inform strategic initiatives for 2026 [22][56] Other Important Information - The company has standardized core safety, security, and operational protocols across its portfolio as part of its integration efforts [23][24] - A new unified digital platform has been launched to enhance customer experience and operational efficiency [23][24] Q&A Session Summary Question: How many parks are considered outperforming versus underperforming? - The outperforming parks represent 70% of EBITDA year-to-date, while the underperforming parks contain the majority of smaller properties [29] Question: What factors contributed to the $300 million difference in guidance? - The majority of the miss is attributed to attendance-driven factors, with significant volatility throughout the year [30][32] Question: What criteria determine when a park becomes non-core? - The evaluation process is ongoing, focusing on demand ramp-up potential and market-specific conditions [32][33] Question: What is the timeline for decisions on underperforming parks? - The company has a good idea of which parks may be classified as non-core and is moving with urgency on this process [36] Question: How does the company gather customer feedback? - The company relies on continuous research and feedback from customers to inform operational decisions and improvements [50][51]

Financial Data and Key Metrics Changes - The company reported a net revenue of $22 million, representing a 4% year-over-year increase [19] - Adjusted EBITDA loss was approximately $240,000, a significant improvement from a loss of $3 million in the previous year, resulting in an adjusted EBITDA margin of negative 1%, compared to negative 14% a year ago [22] - Operating expenses decreased by 6% year-over-year, and down 10% when excluding severance costs, indicating a structural change in profitability [16][21] Business Line Data and Key Metrics Changes - The company achieved a GMV (Gross Merchandise Value) of $90-$96 million for the fourth quarter, reflecting a year-over-year growth in conversion and average order value (AOV) [23] - AOV was nearly $2,700, and median order value was approximately $1,300, both up 10% year-over-year [17] - The number of unique sellers decreased by 17% to approximately 5,800, while total listings grew by 1% to nearly 1.9 million [18][12] Market Data and Key Metrics Changes - The trade segment drove slightly stronger GMV growth year-over-year, indicating a broad-based growth across core buyer segments [18] - The art vertical, accounting for a low teens percentage of total GMV, was the fastest-growing vertical, up double digits [18] Company Strategy and Development Direction - The company executed a strategic realignment to prioritize high ROI technology investments and reduce costs, resulting in a significant shift in workforce composition towards product and engineering roles [6][15] - A new $12 million share repurchase program was authorized, reflecting confidence in generating free cash flow and returning capital to shareholders [4][22] - The company is focusing on maximizing employee productivity through AI integration in product development, with over 25% of new code being written by AI [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA and free cash flow in the fourth quarter and for the full year 2026, assuming low single-digit revenue growth [25] - The strategic decision to reduce performance marketing spending is expected to create a more efficient cost structure that can achieve profitability with minimal reliance on top-line growth [21][24] - The company is optimistic about its competitive position in the luxury market, anticipating a rebound and emphasizing the importance of technology investments for seller ROI [13][14] Other Important Information - The company has implemented a pricing increase effective October 1, impacting about 20% of sellers with a roughly 10% increase, without significant churn [31] - The company is developing its 2026 product roadmap and plans to share more details in the next earnings call [8] Q&A Session Summary Question: Rationale and benefits of the September strategic realignment - Management highlighted that the realignment aimed to achieve adjusted EBITDA profitability and reallocate investments from sales and marketing to higher ROI engineering and product development [29] Question: Impact of the recent pricing increase - The pricing increase was targeted, affecting about 20% of sellers with a 10% increase, and there was no meaningful increase in churn due to the proportionality between value creation and costs [31]

Financial Data and Key Metrics Changes - Global billings grew 11% year over year, marking the second consecutive quarter of double-digit growth [3][4] - Adjusted EBITDA reached $18 million, exceeding expectations, while trailing 12 months free cash flow reached $60 million [4] - Marketing spend increased by 14% year over year, accounting for 37% of gross profit [46] Business Line Data and Key Metrics Changes - The core local category, which represents 89% of billings, grew 18% year over year, with North America local up 18% and international local (excluding Giftcloud) up 15% [4][5] - The "Things to do" segment experienced its seventh consecutive quarter of strong double-digit growth [5] Market Data and Key Metrics Changes - All four major international markets delivered a second consecutive quarter of double-digit growth [5] - Chicago has become the largest city for Groupon, growing at nearly double the rate of North America local overall [5] Company Strategy and Development Direction - The company aims to accelerate supply and growth towards a goal of over 20% billings growth while generating strong adjusted EBITDA and free cash flow [5][6] - There is a focus on building a hyperlocal experience marketplace that combines trust, curation, quality, and unbeatable value [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundation being built for becoming a trusted destination for quality local experiences [6] - The company is optimistic about the impact of AI on sales processes and customer interactions, expecting to enhance lead generation and customer service [39][42] Other Important Information - The company is implementing a Customer Data Platform (CDP) to improve personalization and customer journey optimization [24][51] - Progress is being made on the Italian tax settlement, with a proposed settlement receiving several approvals [63] Q&A Session Summary Question: Growth in Chicago - Management confirmed that Chicago local billings are growing in the high 30s due to focused sales resources and a better understanding of the market [9][10] Question: Purchase Frequency Among New Cohorts - Management noted improvements in repurchase rates among new customers compared to previous cohorts, attributing this to ongoing technology enhancements [22][23] Question: Marketing Strategy Balance - The company plans to balance direct response marketing with brand advertising, with a focus on measuring ROI and adjusting budgets based on performance [26][27] Question: Impact of AI Initiatives - Management discussed the integration of AI in sales processes and customer service, expecting it to enhance conversion rates and customer interactions [39][42] Question: Travel Business Performance - The travel segment has seen growth due to partnerships with large enterprise brands and better offerings aligned with customer needs [55] Question: Italian Tax Settlement Update - The company is making progress on the Italian tax settlement, with a remaining amount owed of approximately $15 million [63]

Financial Data and Key Metrics Changes - In Q1 2026, the company reported net revenue of BRL 286.6 million, an adjusted EBITDA of BRL 64 million, and a net loss of BRL 64.3 million, indicating a challenging quarter due to the end of the sugarcane harvest and the planting of new crops [2][22][23] - The operational EBITDA was BRL 64 million, similar to BRL 61.4 million in the same period last year, reflecting stable operational performance despite market volatility [23][24] Business Line Data and Key Metrics Changes - The sugarcane segment faced challenges with productivity, leading to a decrease in ATR levels from historical averages of 140 kg to around 135-136 kg, impacting overall revenue [22][24] - Soy sales were strong, with 56% of the current harvest sold at BRL 1,072, benefiting from strategic timing in the market [19][20] - Corn prices showed recovery, and the company has a significant volume of corn yet to be sold, indicating potential for future revenue [20][29] Market Data and Key Metrics Changes - The sugar market has been under pressure due to global production expectations, leading to lower prices [4][22] - The cotton market experienced a 14% price drop, while cattle raising showed signs of recovery due to export restrictions [4][11] - The company anticipates a good soy harvest in Brazil, with estimates ranging from 178 to 180 million tons [5][11] Company Strategy and Development Direction - The company is focusing on diversifying its operations across various commodities to mitigate risks associated with market volatility [10][12] - There is an emphasis on cost management and strategic timing in sales to optimize margins, particularly in the soy and corn segments [3][19] - The management is exploring opportunities in biofuels and crushing projects, indicating a long-term strategic shift towards sustainable practices [40][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the agricultural market, particularly influenced by geopolitical factors affecting trade agreements [18][41] - There is optimism regarding the recovery of sugarcane productivity due to improved weather conditions and irrigation strategies [50][51] - The company remains committed to being a dividend-paying entity, reflecting confidence in its long-term financial health despite current challenges [34][35] Other Important Information - The company has a significant amount of receivables, over BRL 650 million, which will positively impact its balance sheet in the coming quarters [20][32] - The company is actively managing its debt levels, with a net debt of BRL 658 million and a focus on maintaining liquidity [32][34] Q&A Session Summary Question: What is the expected sugarcane harvest scenario? - Management expects about 10% more tons harvested by the end of the harvest year, but acknowledges that market estimates may be overly optimistic [36][37] Question: Can you provide an update on land purchase and sale scenarios? - The company is actively pursuing land sales and sees ongoing opportunities in regions like Bahia, despite challenges posed by interest rates [38][39] Question: What is the perspective on soy imports and market competitiveness? - The company anticipates favorable conditions for soy imports from China, which could enhance competitiveness in the market [40][41] Question: How does the company view the potential for biofuels and M&A? - Management sees biofuels as a long-term opportunity and is exploring M&A possibilities to enhance operational efficiency [40][42] Question: What are the expectations for sugarcane TCH recovery? - Management is optimistic about TCH recovery due to improved weather conditions and irrigation strategies, expecting significant improvements in the next harvest [47][50]

Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $181.37, and adjusted operating shareholders' equity per share also reached a record high of $123.10 at the end of Q3 2025 [5] - Adjusted operating income for Q3 2025 was $124 million or $2.57 per share, compared to $130 million or $2.42 per share in Q3 2024, reflecting a modest decline [15][18] - Year-to-date adjusted operating income was $6.77 per share, an increase of approximately 17% compared to the same period last year [5] Business Line Data and Key Metrics Changes - Financial guarantee production in Q3 2025 was strong, with $91 million of PVP, which is 44% more than Q3 2024 and 42% more than Q2 2025 [5][8] - U.S. public finance transactions totaled $7.9 billion of par in Q3 2025, compared to $5.4 billion in Q3 2024, indicating a significant increase in issuance [8][9] - Secondary market U.S. public finance strategy generated $32 million of PVP in the first nine months of 2025, compared to $5 million in the same period of 2024 [11] Market Data and Key Metrics Changes - U.S. municipal bond issuance increased by more than $50 billion in the first nine months of 2025 compared to the same period in 2024, with total primary market insured par volume rising 18% [9] - Assured Guaranty insured 63% of the total insured U.S. municipal market par sold in the first nine months of 2025, up from 57% in the same period of 2024 [9] Company Strategy and Development Direction - The company is looking for strategic opportunities to expand its insurance businesses into new sectors and markets, aiming to diversify revenue sources for sustainable growth [7] - There is a focus on building the subscription finance business, characterized by shorter duration and renewable transactions, which allows for quicker capital recycling [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline for growth in written premiums into 2026, particularly in U.S. public finance and global structured finance [32][34] - The company is actively evaluating opportunities in data centers and has executed in new areas like liquid natural gas, indicating a proactive approach to market trends [26][34] Other Important Information - The Board of Directors authorized an additional $100 million share repurchase, bringing the total authorization to over $330 million [7][20] - The investment portfolio's performance has been enhanced by alternative investments, which have generated an annualized internal rate of return of approximately 13% [7][18] Q&A Session Summary Question: Changes to the investment portfolio and allocation to higher-yielding sectors - Management indicated that they work with outside investment managers to optimize yield while maintaining a safe portfolio with adequate liquidity [23] Question: Issues with Brightline transportation exposure - Management acknowledged Brightline's growing pains as a startup but expressed confidence in their exposure due to being in the senior most section of the capital stack [24] Question: Opportunities in the current data center CapEx cycle - Management confirmed they are actively evaluating data center opportunities and have executed in new areas like liquid natural gas [26] Question: Pipeline for growth in written premium into 2026 - Management sees great opportunities across all three financial guarantee lines of business, particularly in U.S. public finance and global structured finance [32][34] Question: Positive developments in Puerto Rico and PREPA exposure - Management stated that recognition of value in reserves would require a deal, emphasizing their strong position as a creditor [38]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 grew 11% year-over-year to $189 million, within guidance range [4][25] - Adjusted EBITDA margin reached 35%, exceeding expectations and demonstrating scalability [4][30] - Total advertiser revenue grew 10%, driven by increased volumes, while media transactions measured increased 12% year-over-year [26][28] - Adjusted EBITDA was approximately $66 million, reflecting strong profitability and cash generation [30][34] Business Line Data and Key Metrics Changes - Activation revenue grew 10% year-over-year, with ABS accounting for 54% of activation revenue and growing 12% [27][28] - Non-ABS activation revenue grew 8%, driven by demand for social activation solutions [28] - Measurement revenue grew 9% year-over-year, with social measurement accounting for 48% of total measurement revenue [28] Market Data and Key Metrics Changes - Social activation is growing at 20%, with strong early adoption of DV Authentic Advantage and Meta Pre-Bid solutions [9][10] - CTV measurement volumes grew 30% year-over-year, reflecting increased advertiser demand for transparency [17] - Supply-side revenue grew 27% in Q3, driven by growth on existing platforms and new partnerships [29] Company Strategy and Development Direction - The company aims to grow social, streaming TV, and AI verification solutions from under 30% of total revenue to approximately 50% [19][35] - Focus on innovation through AI and automation to enhance product offerings and operational efficiency [6][23] - Strategic partnerships with global leaders and expansion into new markets are key to driving future growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted softer retail budgets impacting growth but highlighted strong performance in other core verticals [4][25] - The company expects continued double-digit revenue growth and strong profitability for the full year 2025 [30][34] - Future growth will be driven by the adoption of new solutions in social, CTV, and AI [39][52] Other Important Information - The company repurchased 3.3 million shares for $50 million in Q3, with $90 million remaining for additional repurchases [31][32] - Capital expenditures increased to approximately $12 million in Q3, reflecting investments in new solutions [30][32] Q&A Session Summary Question: Growth drivers for next year - Management indicated a base case scenario of 10% growth for 2026, driven by new solutions in social, CTV, and AI [38][39] Question: Softness in retail - The softness is broad-based across the retail vertical, impacting a large share of top spenders [44] Question: Impact of competitors leaving the market - The departure of less scaled competitors creates a more advantageous position for the company to invest and grow [49][50] Question: Client base and SMBs in CTV - The company sees opportunities in attracting SMBs into the CTV space, leveraging existing platforms for growth [56] Question: Scaling of Meta Pre-Bid and DV Authentic Advantage - Both products are expected to scale significantly, with strong early adoption and positive initial results [58][59]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $28.9 million for Q3 2025, an increase of approximately 20% compared to the previous year [4][11] - Adjusted EBITDA margin increased from 15.7% to 17.1%, reflecting a 22% increase in shipping days and a 13% decrease in voyage expenses on a per-day basis [11][12] - GAAP net income for Q3 was $12.2 million, or $0.19 per diluted share, while adjusted net income was $11.2 million, or $0.17 per diluted share [12][13] - The company ended the quarter with approximately $94 million in unrestricted cash and total debt of approximately $386 million [7][13] Business Line Data and Key Metrics Changes - The company achieved TCE rates averaging $15,559 per day, a premium of approximately 10% over the average market rates for Panamax, Supermax, and Handy Size vessels [4][11] - Vessel operating expenses increased by approximately 57% year over year, primarily due to the acquisition of the SSI fleet [12] - Total general and administrative expenses increased by 64%, from $6 million to approximately $9.8 million, mainly due to the consolidation of technical management operations [12] Market Data and Key Metrics Changes - Near-term dry bulk fundamentals remain constructive, with expected agricultural shipments from the U.S. to China supporting U.S. Gulf markets [7] - The company has booked 4,210 shipping days for Q4 2025, generating a TCE of $17,107 per day [8] Company Strategy and Development Direction - The company is focused on improving fleet efficiency and emissions performance, with ongoing fleet renewal strategies [6] - Expansion of integrated service platforms is a priority, with new operations commencing at various ports [5] - The company aims to maintain a disciplined approach to capital allocation, prioritizing investments in fleet and organic growth opportunities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term setup due to limited effective supply growth and regulatory constraints [7] - The CEO announced retirement effective January 1, 2026, with the COO expected to lead the company into its next chapter [8][9] Other Important Information - The company repurchased approximately 600,000 shares for a total of approximately $3 million and declared a $0.05 quarterly dividend [6][15] Q&A Session Summary Question: Mads, can you highlight your top three priorities going forward? - Mads emphasized continuity in strategy, focusing on customer growth, logistics, and fleet expansion when opportunities arise [22][23] Question: What do you expect the premium to the index to be in Q4? - Mads indicated that while Q4 is not fully booked, there is an expectation for premiums to align with typical levels seen in the business [24][25] Question: Can you discuss your fleet renewal program in the context of asset values? - Mads noted a pragmatic approach to fleet renewal, emphasizing the importance of maintaining a non-shrinking fleet while being selective about new acquisitions [26][27]

Financial Data and Key Metrics Changes - The operating profit for the second quarter was JPY 438.1 billion, a decrease of JPY 304.4 billion compared to the same period last year [4][6] - Investment earnings due to the equity method were JPY 10.8 billion, an increase of JPY 31.6 billion [6] - The half-year profit attributable to the owner of the parent was JPY 311.8 billion, down by JPY 182.8 billion [6] - The forecast for consolidated results for the fiscal year ending in March 2026 is an operating profit of JPY 550 billion, down by JPY 150 billion from the previous forecast [5][6] Business Line Data and Key Metrics Changes - Motorcycle operations achieved record high unit sales of 10.763 million units, despite a decline in Vietnam, with strong growth in Brazil and the Philippines [8] - Automobile business unit sales were 1.68 million units, primarily affected by declines in China [8] - Power products unit sales totaled 1.699 million units, with growth led by Europe despite declines in Asia [8] Market Data and Key Metrics Changes - The forecast for motorcycle unit sales is maintained at 21.3 million units, while automobile unit sales are revised down from 3.62 million to 3.34 million units due to semiconductor shortages [5][14] - The exchange rate against the U.S. Dollar is assumed at 145 yen for the full year [7] Company Strategy and Development Direction - The company aims to enhance profitability in internal combustion engine (ICE) and hybrid electric vehicles (HEV) while reviewing its product lineup to focus on profitable models [23][24] - There is a need to rationalize fixed expenses and improve overall profitability, particularly in the automobile sector [25][39] - The company plans to shift towards battery electric vehicles (BEV) while managing costs and minimizing losses [25][86] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and semiconductor shortages, which are expected to continue impacting operations [21][40] - The company is optimistic about maintaining good results in North America but recognizes the need for fundamental changes in Asia due to declining profitability [22][23] - Future actions include revising investment plans and enhancing competitiveness in the market [24][25] Other Important Information - The company reported a free cash flow of JPY 760.6 billion, with a net cash balance of JPY 3.0539 trillion at the end of the first half [14] - The forecast for the full-year dividend remains unchanged at 70 yen per share [7] Q&A Session Summary Question: Future prospects for motorcycles and automobiles - Management expressed confidence in motorcycle operations, expecting to recover declines in Vietnam through strong performance in Brazil and Thailand [20] - For automobiles, management noted the need to invest in intelligence and hybrid electric vehicles, while acknowledging challenges from tariffs and environmental regulations [21][22] Question: Impact of semiconductor shortages - Management confirmed that semiconductor shortages have impacted production, with an estimated loss of 110,000 units in North America [42] - They are working closely with suppliers to minimize production disruptions and expect to resume normal operations soon [43][44] Question: Reasons for downward revision of forecasts - Management clarified that the downward revision was due to external factors, including tariffs and semiconductor shortages, which were more severe than initially anticipated [31][32] - They emphasized the importance of transparency in their forecasting approach [91] Question: Challenges in the Chinese market - Management acknowledged struggles in the Chinese market due to high price competition and the absence of advanced features in their vehicles compared to competitors [62][63] - They are reviewing their product strategy and planning to enhance local procurement to improve competitiveness [74][75] Question: Profitability of electric vehicles - Management indicated that while losses from BEVs are expected this year, they are focused on reducing manufacturing costs and improving profitability in the future [86]

Financial 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 [27] - Operating profit rose by 16% year-over-year, amounting to KRW 538.2 billion [27] - Net income increased by 16.2% year-over-year, recording KRW 445.3 billion, supported by the rise in operating profit [28] - EBITDA grew by 5.2% year-over-year, reaching KRW 1,503.9 billion [28] - Operating expenses rose by 6.4% year-over-year to KRW 6 trillion 588.6 billion, attributed to increased cost of goods sold, cost of services, and selling expenses [32] Business Line Data and Key Metrics Changes - Wireless revenue grew by 4% year-over-year, reaching KRW 1,809.6 billion, driven by subscriber base expansion around 5G, with 5G penetration at 80.7% [35][36] - Broadband internet revenue increased by 2.3% year-over-year to KRW 636.7 billion, supported by GiGA Internet subscriber growth and value-added services [38] - Media business revenue grew by 3.1% year-over-year, backed by higher IPTV subscriber net additions and premium plan sales [40] - Home telephony revenue fell by 6.6% year-over-year to KRW 160.9 billion [42] - B2B service revenue reported a 0.7% year-over-year growth, driven by enterprise messaging and corporate broadband despite low-margin business streamlining [44] - AI and IT business revenue decreased by 5.7% year-over-year due to structural enhancements, despite ongoing monetization efforts [46] - KT Cloud revenue surged by 20.3% year-over-year, driven by increased data center usage and AI cloud demand [49] - KT Estate revenue rose by 23.9% year-over-year to KRW 186.9 billion, supported by strong hotel business performance and new development projects [50] Market Data and Key Metrics Changes - The net to equity ratio as of September 2025 was 123.3%, while the net debt ratio increased by 4.2 percentage points year-over-year to 34.5% [33] Company Strategy and Development Direction - KT is focusing on transforming into an AICT company, collaborating with global tech firms to launch specific services and establishing the KT Innovation Hub [14][16] - The corporate value enhancement plan is ongoing, with efforts to streamline assets and enhance profitability through rationalizing low-margin businesses and liquidating non-core assets [21] - A share buyback of KRW 250 billion was completed on August 13 as part of the value enhancement plan [23] 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 unauthorized micropayment incident [62] - Despite challenges, management is optimistic about achieving year-over-year growth for the full year 2025, supported by solid performance in core businesses and one-off gains [64] - The company is committed to investing over KRW 1 trillion in information security over the next five years to enhance customer protection and prevent future incidents [79] Other Important Information - The process for CEO nomination began on November 4, with a committee of independent directors responsible for selecting candidates [9] - The third quarter dividend was set at KRW 601 per share, maintaining a 20% higher payout year-over-year [19] Q&A Session Summary Question: Outlook for Q4 and dividend payment - Management acknowledged the usual seasonality impacts in Q4 and uncertainties from customer compensation measures, taking a conservative stance on forecasts while striving to minimize impacts [62][65] - Regarding dividends, management indicated that the board will consider annual financial performance and shareholder expectations before making decisions [65][66] Question: Financial impact of the hacking incident and prevention measures - Management confirmed that compensation plans are in place for affected customers, with costs related to USIM replacement expected to be recognized in Q4 [75][77] - A significant investment in information security exceeding KRW 1 trillion over five years was announced, with annual investments of KRW 120 billion-130 billion expected [79] Question: CEO appointment process and impact on value-up program - The CEO appointment process involves a director candidate recommendation committee and will conclude with a candidate presented to the board for final confirmation [86][90] - Management assured that the value-up plan will remain consistent regardless of the new CEO, as it is a commitment to the market [92]