KT Corporation's Q4 2024: Contradictions Unveiled on CapEx, Shareholder Returns, and Content Strategy

These are the key contradictions discussed in KT Corporation's latest 2024Q4 earnings call, specifically including: CapEx and Infrastructure Investment Plans, Shareholder Return Expectations, Content Business Strategy, and Dividend Policy and Shareholder Return:



Consolidated Revenue and AICT Transformation:
- KT Corporation reported consolidated revenue of KRW 26,431.2 billion for 2024, a historical record since its establishment in 1998.
- The growth was driven by balanced growth between B2C and B2B segments, with strong performances from data center, cloud, and other core businesses, along with a strategic partnership with Microsoft for AICT transformation.

Operating Profit and Structural Improvements:
- Operating profit for 2024 declined by 50.9% year-on-year, with operating profit at KRW 809.5 billion.
- The decline was due to one-off labor costs following workforce restructuring but adjusted operating profit increased by 9.8% year-on-year when excluding one-off impacts, indicating stronger fundamentals.

Dividend and Shareholder Returns:
- KT adopted a quarterly dividend policy in 2024, with cumulative dividends paid out amounting to KRW 150 billion up to Q3.
- The DPS for Q4 '24 was set at KRW 500 per share, and an annual DPS increase from KRW 1,961 in 2023 to KRW 2,001 in FY '24 was announced.

CapEx and Strategic Investments:
- KT Group's total CapEx spend in 2024 was KRW 3,123.4 billion, with a focus on core growth businesses like finance, media, DX, and real estate, which reported KRW 823.5 billion in CapEx.
- The company maintained its CapEx levels to facilitate AICT transformation and strategic growth initiatives.