KT (030200) Q1 2026 earnings summary

Executive summary

• Revenue for 1Q26 was KRW 6,778.4 billion, down 1.0% YoY, mainly due to a high base effect from prior-year real estate gains and slower wireless growth.

• Operating profit declined 29.9% YoY to KRW 482.7 billion, reflecting the absence of one-off real estate gains and increased costs.

• Net income dropped 31.5% YoY to KRW 388.3 billion.

• Management is focused on advancing cybersecurity, IT/network infrastructure, and executing a value-up plan.

• Shareholder return policy targets 50% of adjusted net income via dividends and buybacks, with a minimum FY26 dividend of KRW 2,400 per share.

Financial highlights

• Service revenue was KRW 5,733.4 billion (+0.6% YoY), while sale of goods fell 8.7% YoY.

• EBITDA for 1Q26 was KRW 1,440.0 billion, down 13.1% YoY, with a margin of 21.2%.

• Operating expenses rose 2.3% YoY to KRW 6,295.7 billion due to higher selling and labor costs.

• Net debt-to-equity ratio improved by 3.9pp YoY to 39.9%.

• Q1 CapEx: KRW 363.7 billion (standalone: KRW 304.2 billion; subsidiaries: KRW 59.5 billion).

Outlook and guidance

• Full-year operating income targeted at similar adjusted levels as last year (KRW 1.5 trillion, excluding one-offs).

• FY26 dividend guidance is set at a minimum of KRW 2,400 per share.

• Shareholder return policy includes cash dividends and share buybacks/cancellations, based on 50% of adjusted net income.

• Strict management of operating expenses, especially sales costs, planned for Q2 and beyond.

• KT Cloud expected to continue double-digit revenue growth in 2026.