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

Generated by AI AgentAinvest Earnings Call Digest
Monday, Aug 11, 2025 7:35 am ET1min read
KT--
Aime RobotAime Summary

- KT Corporation reported KRW 7.427 trillion Q2 2025 revenue, up 13.5% YoY driven by telco and AI/IT growth.

- AI business grew 13.8% YoY through Microsoft partnerships, proprietary models, and network/media AI integration.

- Company raised dividends 20% to KRW 600/share and announced KRW 250 billion share buyback.

- Despite subsidy law repeal, KT expects limited market disruption due to high 5G adoption and extended device cycles.



Financial Performance and AI Integration:
- KT CorporationKT-- 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 MicrosoftMSFT--, developing proprietary AI models, and leveraging AI for network management and media services.

Dividend and Shareholder Returns:
- KTKT-- 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.

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