KT Corp Q1 FY 26 Operating Profit Falls 29.9% on Base Effect

Seoul, South Korea - KT Corp (NYSE: KT) reported a 29.9% year-on-year decrease in first-quarter consolidated operating profit to KRW 482.7 billion (US$321.1 million). 

The company attributed the decline primarily to a high comparison base from a major real estate project completed in the prior year, as well as increased overall expenses.

Consolidated operating revenue for the quarter ended March 31 fell 1.0% year-on-year to KRW 6,778.4 billion (US$4.51 billion). 

Consolidated net income dropped 31.5% to KRW 388.3 billion (US$258.3 million), while EBITDA decreased 13.1% to KRW 1,440.0 billion (US$957.9 million). 

Operating expenses rose 2.3% year-on-year to KRW 6,295.7 billion (US$4.19 billion), driven by higher selling expenses and labor costs.

On a standalone basis, KT's operating revenue increased 3.3% year-on-year to KRW 4,834.6 billion (US$3.22 billion). 

Standalone operating profit declined 21.5% to KRW 313.9 billion (US$208.8 million).

The company's wireless business segment posted revenue of KRW 1,757.4 billion (US$1.17 billion), a 0.2% increase from the prior year. 

KT said wireless subscriber trends returned to net additions following the expiration of an early termination fee waiver period. 

Total wireless subscribers reached 29.16 million, with 5G penetration at 82.7%.

Fixed-line operations generated KRW 1,321.6 billion (US$879.1 million) in revenue, up 0.8% year-on-year, supported by a 1.8% increase in broadband revenue and a 1.3% rise in media revenue. 

The company attributed the media revenue growth to IPTV net additions and higher uptake of premium plans.

B2B service revenue declined 2.2% year-on-year to KRW 872.4 billion (US$580.3 million). 

KT attributed the decrease to ongoing streamlining of low-margin businesses and the completion of a large-scale data center design-and-build project.

Among major subsidiaries, KT Estate recorded a 72.9% increase in revenue to KRW 237.4 billion (US$157.9 million), driven by hotel operations and the Daejeon HR Center development project. 

Revenue at KT Cloud rose 0.4% to KRW 250.1 billion (US$166.4 million).

KT declared a first-quarter dividend of KRW 600 (US$0.40) per share and announced a share buyback and cancellation program valued at KRW 250.0 billion (US$166.3 million) as part of its shareholder return policy.