KT Corporation Reports Earnings Amid Security Challenges

SEOUL, South Korea — KT Corporation held its Q3 earnings call, revealing a blend of achievements and challenges. The telecommunications giant reported significant growth in revenue and profit but also faced a major security breach that could affect its future stability.

KT Corporation reported a year-over-year operating revenue increase of 7.1%, totaling KRW 7.1267 trillion. Operating profit jumped by 16% to KRW 538.2 billion, and net income rose by 16.2% to KRW 445.3 billion, showcasing the company’s strong financial position.

In a bid to reward shareholders, KT announced a quarterly dividend of KRW 600 per share, marking a 20% increase from the previous year. This move underscores KT’s commitment to providing value to its investors.

The company’s cloud and real estate sectors stood out, with cloud revenue climbing by 20.3% year-over-year and KT Estate reporting a 23.9% increase, generating KRW 186.9 billion.

KT’s subscriber base growth also led to a 4% rise in wireless revenue, with 5G penetration reaching 80.7%, signaling strong market adoption.

However, KT is grappling with a serious challenge following an unauthorized micropayment incident. The company is taking steps to enhance security and compensate affected customers, but uncertainties remain regarding potential penalties.

The IT business segment saw a 5.7% dip in revenue, and the home telephony sector experienced a 6.6% decline, indicative of the broader trend in traditional telephony services.

Looking ahead, CFO Jang Min projected continued growth for 2025, with operating revenue expected to rise by 7.1%. KT plans to maintain its dividend strategy and has completed a KRW 250 billion share buyback as part of a larger plan.

Overall, KT Corporation’s earnings call highlighted a mix of financial success and ongoing challenges, particularly concerning security and market competition.