KT posted first-quarter consolidated revenue of 6.78 trillion won and operating profit of 482.7 billion won. Revenue and operating profit fell 1.0 percent and 29.9 percent from a year earlier. Operating profit declined due to base effects from one-off gains last year, but the drop was partly cushioned by improved results at KT Estate and the content group affiliates.

KT on May 12 disclosed preliminary results for the first quarter of 2026. On a separate basis, it posted revenue of 4.83 trillion won and operating profit of 313.9 billion won. Some costs related to a customer rewards programme in place since February and to a security incident were reflected.

◆ Continued growth in wireless and fixed-line businesses... expanding AX for corporate clients

In the wireless business, some subscribers left during a penalty waiver period following an unauthorised small-value payment incident. It returned to net additions after February, and service revenue rose 0.4 percent from a year earlier. As of the end of the first quarter, 5G subscribers accounted for 82.7 percent of total handset subscribers.

Fixed-line business revenue rose 0.8 percent from a year earlier on subscriber growth. Internet business revenue grew 1.8 percent from a year earlier due to an increase in subscribers centred on GiGA Internet and expanded use of value-added services. Media business revenue rose 1.3 percent on growth in IPTV subscribers and increased use of premium set-top boxes.

Corporate services revenue fell 2.2 percent from a year earlier, when major deployment projects were completed, despite stable growth in the telecoms business and expansion of new businesses such as AI contact centres, or AICC. KT said it strengthened the foundation for future growth by securing major public projects such as the disaster and safety communications network deployment project and winning AICC and cloud orders from financial firms in the first quarter.

Strategic partnerships with Microsoft and Palantir are also producing early results. KT secured new orders related to AI transformation, or AX, mainly from financial customers. It plans to expand its business-to-business AX business by building industry-specific references in finance, the public sector and manufacturing.

KT launched a Customer Protection 365 task force, putting customer trust as its top value. It aims to shift to a prevention-focused customer protection system. It plans to prevent customer damage in advance and improve response quality through AI-based real-time detection, a one-stop resolution centre and operation of a customer listening forum. The company has been implementing a customer rewards programme since February for 6 months, offering benefits across telecoms, content and daily life, as it focuses on restoring trust.

◆ KT Group posts stable results centred on core portfolio

KT Group maintained a stable performance trend centred on its core portfolio. KT Cloud posted revenue in line with a year earlier on demand for data centres and AI and cloud businesses. KT Cloud plans to sustain annual double-digit growth by expanding the utilisation rate of the Gasan data centre opened in November last year, building new data centres and expanding its AI foundry business, while strengthening its push into the public and corporate AI cloud markets.

KT Estate posted revenue of 237.4 billion won, up 72.9 percent from a year earlier, due to higher presale revenue as the progress rate of an apartment presale project in Goejeong-dong, Daejeon increased. It also contributed to improved results as hotel occupancy and room rates rose on increased domestic travel demand.

Content subsidiaries grew 1.9 percent from a year earlier despite a slowdown in the advertising market and the impact of the sale of PlayD. KT Studio Genie increased competitiveness by expanding its lineup of premium original content such as Climax and diversifying distribution. KT Millie's Library continued to improve results on subscriber growth and expanded subscription-based revenue.

K Bank completed a KOSPI listing on March 5, strengthening its growth base. As of the end of March, K Bank's deposit balance was 28.22 trillion won and its loan balance was 18.75 trillion won. It secured 540,000 new customers in the first quarter, raising the total to 16.07 million. K Bank plans to use capital secured through the listing to pursue entry into the SME finance market and strengthen platform competitiveness.

◆ Minimum dividend per share of 2,400 won in 2026

KT announced a mid-term shareholder return policy for fiscal years 2026 to 2028. It will use 50 percent of adjusted separate net profit as resources for shareholder returns, but will calculate the return amount based on an adjusted standard that excludes non-cash and non-recurring gains and losses. It aims to reduce the impact of temporary profit swings on dividend resources and improve dividend stability and predictability.

It will also maintain its existing direction of combining cash dividends with share buybacks and cancellations. KT presented a minimum annual dividend per share of 2,400 won for 2026. The first-quarter dividend per share is 600 won. The dividend record date is May 27, and the dividend will be paid on June 11.

KT previously announced in February a 250.0 billion won share buyback and cancellation plan to enhance corporate value. It has been buying back shares via a trust contract for 6 months starting in March.

KT Chief Financial Officer Hye-byung Min (민혜병) said, "The first quarter was a period in which we implemented a customer rewards programme following a customer security incident and advanced our security system, while solidifying competitiveness in B2C and B2B businesses." He added, "Going forward, under the vision of an AX platform company, we will continue AX-based growth and enhance corporate value through improved profitability."