KT Corp Q2 Operating Profit Surges 105% on Real Estate

Seoul, South Korea - KT Corp (NYSE: KT) reported second-quarter operating profit of KRW 1.01 trillion (US$757 million), an increase of 105.4% from the same period last year, according to financial results released Monday.

The South Korean telecommunications company attributed the profit increase to gains from real estate sales, specifically the Gwangjin-gu Lotte Eastpole Apartment project, alongside growth in its core telecommunications and group portfolio businesses.

Consolidated revenue reached KRW 7.43 trillion (US$5.57 billion), representing a 13.5% year-on-year increase. 

Separate revenue totaled KRW 4.77 trillion (US$3.58 billion), up 4.9% from the previous year.

The company reported a separate operating profit of KRW 468.7 billion (US$351 million), an increase of 30.6% compared to the second quarter of 2024.

Wireless service revenue increased 1.6% year-on-year to KRW 1.70 trillion. 

The company reported 27.5 million total wireless subscribers as of the end of June, with 5G handset subscribers representing 79.5% of total handset subscribers. 

Wireless subscribers increased 10.4% from the previous year.

Fixed-line revenue rose 1.4% to KRW 1.33 trillion. 

Broadband revenue increased 2.1% to KRW 631.4 billion, while broadband subscribers reached 10.07 million. 

Media revenue grew 0.8% to KRW 526.9 billion, supported by IPTV subscriber additions and premium plan adoption.

Business-to-business service revenue increased 4.5% to KRW 922.7 billion. 

Corporate broadband and data revenue rose 3.5% to KRW 338.3 billion, while AI and IT revenue increased 13.8% to KRW 317.6 billion.

Among major subsidiaries, KT Cloud reported revenue of KRW 221.5 billion, up 23.0% from the previous year. 

Content subsidiaries generated KRW 143.5 billion in revenue, an increase of 6.0%. KT Estate revenue increased 2.0% to KRW 160.4 billion.

Net income reached KRW 733.3 billion (US$550 million), representing a 78.6% increase from the second quarter of 2024. 

Earnings before interest, taxes, depreciation and amortization totaled KRW 1.99 trillion, up 36.3% year-on-year.

The company declared a quarterly dividend of KRW 600 per share, an increase of 20% from the previous year, with payment scheduled for August 14. 

KT stated it will complete a KRW 250 billion share buyback program by August 13.

Operating expenses increased 5.9% to KRW 6.41 trillion, driven by higher cost of services and cost of goods sold, despite a reduction in labor costs. 

Cost of goods sold rose 46.8% to KRW 1.28 trillion.

KT reported total assets of KRW 42.19 trillion as of June 30, compared to KRW 43.14 trillion in the same period last year. 

Total borrowings decreased to KRW 10.75 trillion from KRW 10.15 trillion in the previous year.

The company announced capital expenditure of KRW 845.8 billion for KT's separate operations and KRW 518.5 billion for major subsidiaries during the first half of 2025.

($1 = KRW 1,335 as of June 30, 2025)