KT (030200) Q2 2026 earnings summary

Executive summary

• Revenue for 2Q26 was KRW 6,679.9bn, down 10.1% year-over-year, mainly due to a high prior-year base from a real estate project and lower wireless revenue following a customer appreciation program.

• Operating profit declined 36.1% year-over-year to KRW 648.3bn, but improved 34.3% sequentially from the previous quarter.

• Net income for 2Q26 was KRW 480.6bn, down 34.5% year-over-year, but up 23.7% sequentially.

• Operates as a diversified ICT, media, financial, and real estate group with 78 consolidated subsidiaries as of June 30, 2026.

• Management is focusing on transforming into an AX Platform Company, expanding Asia connectivity, and enhancing cybersecurity and IT governance.

Financial highlights

• H1 2026 consolidated revenue: KRW 13,458.3bn, down from KRW 28,244.2bn in FY2025.

• H1 2026 operating profit: KRW 1,131.0bn; net profit: KRW 868.9bn.

• Service revenue increased 1.8% year-over-year to KRW 5,922.9bn, while sale of goods dropped 53.0% year-over-year.

• EBITDA for 2Q26 was KRW 1,589.4bn, down 20.2% year-over-year, with a margin of 23.8%.

• H1 2026 cash flow from operations: KRW 2,171.6bn; cash and equivalents at period end: KRW 3,049.8bn.

Outlook and guidance

• FY2028 targets include consolidated ROE of 9–10%, doubling AX revenue from 2025 levels, and an operating profit margin above 9%.

• Announced mid-term shareholder return policy: 50% of adjusted net income to be returned via dividends and share buybacks through 2028.

• Minimum annual cash dividend of KRW 2,400 per share for 2026.

• Plans to enhance profitability through cost reduction, asset optimization, and additional share buybacks totaling KRW 1tr.

• Continued investment in AI infrastructure, subsea cables, and AX innovation to drive future growth.