Excluding one-time labor costs,
consolidated operating profit last year was 1.8118 trillion KRW
up 9.8% year-on-year
Strong performance in wireless and enterprise services businesses
Office sketch related to KT's plan to launch the super-large AI 'Mideum'. Photo by Jo Yongjun jun21@
KT announced on the 13th that its consolidated operating profit for last year was tentatively estimated at 809.5 billion KRW, a 50.9% decrease compared to the previous year. Sales increased by 0.2% year-on-year to 26.4312 trillion KRW. Net profit fell by 54.5% to 450.1 billion KRW.
Operating loss in the fourth quarter of last year was 655.1 billion KRW, turning to a loss from an operating profit of 265.6 billion KRW in the same period of the previous year. Fourth-quarter sales and net loss were recorded at 6.5756 trillion KRW and 736.6 billion KRW, respectively.
A KT official explained, "One-time labor costs were reflected due to workforce restructuring implemented in the fourth quarter," adding, "Excluding one-time labor costs, consolidated operating profit for last year was 1.8118 trillion KRW, and separate operating profit was 1.3328 trillion KRW, representing increases of 9.8% and 12.4% year-on-year, respectively, indicating improved profitability compared to the previous year."
The wireless business achieved 1.3% sales growth year-on-year by expanding customer choices through the launch of various plans such as the online no-contract plan ‘Yogo’. The 5G subscriber ratio reached 77.8% of total handset subscribers. Wireless service sales rose 1.7% year-on-year due to an increase in 5G subscribers and steady growth in roaming and Mobile Virtual Network Operator (MVNO) businesses.
The wired business maintained sales at a level similar to the previous year. Ultra-high-speed internet sales increased by 1.1% year-on-year, supported by the growth in Giga Internet subscribers. Wired telephone sales declined by 7.3% year-on-year due to decreased demand within households. The media business achieved 1.2% sales growth year-on-year, driven by net increases in Internet TV (IPTV) subscribers and growth in subscribers with higher average revenue.
The enterprise services business grew by 2.9% year-on-year. Corporate internet and data businesses maintained stable growth. Notably, the AI Content Center (AICC) and smart mobility AI transformation (AX) platform businesses showed remarkable performance.
KT decided on a dividend of 500 KRW per share for the fourth quarter of last year. Since introducing quarterly dividends last year, it paid 500 KRW per share for each of the first to third quarters. Thanks to efforts to improve profitability, KT increased the annual dividend per share from 1,960 KRW in 2023 to 2,000 KRW in 2024. The record date for the dividend is February 28, and the dividend will be paid after final approval at the March regular shareholders' meeting.
In November last year, KT announced a plan to enhance corporate value, setting a consolidated return on equity (ROE) target of 9-10%. It revealed plans to repurchase and retire treasury shares worth a cumulative 1 trillion KRW by 2028. Accordingly, KT plans to actively implement the corporate value enhancement plan this year through treasury share repurchases and retirements worth approximately 250 billion KRW.
KT is pursuing a structural transformation into an artificial intelligence and information and communications technology (AICT) company this year through a strategic partnership with Microsoft.
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