KT's 2025 Q2 Earnings Call: Unraveling Contradictions in AI Strategy, Shareholder Returns, and Revenue Projections

Financial Performance and AI Integration:
- KT Corporation reported operating revenue of KRW 7,427.4 billion for Q2 2025, up 13.5% year-over-year.
- The growth was driven by both telco business and AI and IT service growth.

AI Business Strategy:
- KT's AI and IT business revenue saw 13.8% year-over-year growth.
- The strategy focuses on partnerships with global tech companies like Microsoft, developing proprietary AI models, and leveraging AI for network management and media services.

Dividend and Shareholder Returns:
- KT declared a dividend of KRW 600 per share, an increase of 20% year-over-year.
- The company plans to initiate a share buyback of KRW 250 billion and has a long-term goal of acquiring KRW 1 trillion in shares.

Market Dynamics and MNP Impact:
- Despite the repeal of the Handset Subsidy Act, KT anticipates short-lived market competition.
- The company attributes this expectation to high 5G penetration rates and longer handset replacement cycles.