KT Corp Q1 Profit Surges 36% on AI Growth, Real Estate

Seoul, South Korea—KT Corp (NYSE: KT) reported on Friday that its first-quarter operating profit rose 36% year over year, bolstered by growth in its artificial intelligence technology business and real estate development projects.

The company posted an operating profit of KRW 688.8 billion (US$469.1 million) for the January-March quarter, up from KRW 506.5 billion in the same period last year. Consolidated revenue increased 2.9% to KRW 6,845.1 billion.

Net income for the quarter reached KRW 566.8 billion, representing a 44.2% increase from the previous year. 

The company's EBITDA grew 12% to KRW 1,657.4 billion, with the margin improving by two percentage points to 24.2%.

The company's AI and IT revenue rose 10.2% compared to the same quarter last year, maintaining a strong double-digit growth trajectory. 

KT reported accelerating its AICT transformation while streamlining 20 low-margin business units and divesting non-core assets.

KT partnered with Palantir in March 2025 as part of its strategic initiatives. 

It plans to launch a Korean AI model and Secure Public Cloud based on its Microsoft partnership beginning in June 2025.

KT's wireless service revenue increased 1.6% year-on-year in its core telecommunications business, and 5G penetration reached 78.9%. 

The company reported 26.45 million wireless subscribers as of the end of March, a 6.5% increase from the previous year. 

Broadband revenue grew by 1.3%, which was attributed to increased GiGA subscribers and new value-added services.

KT's B2B service revenue declined slightly by 0.3% year-on-year, attributed to its continued efforts to streamline low-margin businesses.

Among its subsidiaries, KT Cloud showed the strongest performance with a 42.2% revenue increase, supported by increased data center usage from global clients. 

BC Card saw a 6.8% revenue decline as card transactions slowed amid broader economic uncertainty.

The company's financial position showed a 0.7% quarter-on-quarter increase in assets to KRW 42,185.6 billion, while liabilities decreased slightly by 0.2% to KRW 23,847.3 billion. 

The net debt-to-equity ratio rose 6.0 percentage points from the previous quarter to 43.8%.

KT declared a first-quarter dividend of KRW 600 per share for shareholder returns, representing a 20% increase from the previous year. 

The company also announced plans for share buybacks and cancellations worth KRW 250 billion as part of its value-up plan. 

It will transition to a quarterly dividend procedure starting from the second quarter of 2025.

Capital expenditure for the quarter totaled KRW 651.8 billion, with KRW 300 billion allocated to KT's separate operations and KRW 351.8 billion to major subsidiaries.