KT Corp (KT) 2025 Q2 法說會逐字稿

Good morning, and good evening. Thank you all for joining this conference call. And now we will begin the conference of the second quarter of fiscal year 2025 earnings results by KT. We would like to have welcoming remarks from KT IRO, and then CFO will present earnings results and entertain your questions. This conference will start with a presentation followed by a Q&A session.

早安，晚上好。感謝大家參加本次電話會議。現在我們開始KT 2025財年第二季業績發表會。我們想聽聽 KT IRO 的歡迎辭，然後 CFO 將介紹收益結果並回答您的問題。本次會議將以演講開始，然後是問答環節。

(Operator Instructions) Now we would like to turn the conference over to KT IRO.

（操作員指示）現在我們想將會議交給 KT IRO。

This is KT's IRO, Jaegil Choi. We would like to begin KT's second-quarter 2025 earnings presentation. Be reminded that today's presentation includes financial estimates and operating results under the K-IFRS standards that are yet to be reviewed by an outside auditor. We, therefore, cannot ensure accuracy nor completeness of financial and business data, aside from the historical actuals. So please note that these figures may be subject to change in the future.

我是 KT 的 IRO，Jaegil Choi。我們想開始 KT 2025 年第二季的財報。請注意，今天的演示包括根據 K-IFRS 標準得出的財務估算和經營業績，這些業績尚未經過外部審計師的審查。因此，除了歷史實際情況外，我們無法確保財務和業務資料的準確性和完整性。因此請注意，這些數字將來可能會發生變化。

With that said, I now invite the company's CFO, Jang Min, to run through the second-quarter results of 2025.

說到這裡，我現在請公司財務長張敏來介紹2025年第二季的業績。

Good afternoon. This is Jang Min, KT's CFO. KT continued to drive revenue and operating profit growth this quarter while making the effort towards a complete transformation into an AICT company.

午安.我是 KT 的財務長 Jang Min。本季度，KT 繼續推動營收和營業利潤成長，同時努力實現向 AICT 公司的全面轉型。

Also, corporate value enhancement plan is well underway. And as part of that value-up program, we plan to complete share buyback of KRW250 billion on August 13. Dividend for the second quarter has been decided at KRW600 per share, an increase of 20% year over year. And starting from this quarter, even for quarterly dividend payouts, dividend amount will first be declared, which will then be followed by setting of the record date, a system that is shareholder friendly.

此外，企業價值提升計畫也順利進行中。作為此增值計畫的一部分，我們計劃於 8 月 13 日完成 2,500 億韓元的股票回購。第二季的股息確定為每股600韓元，年增20%。而從本季開始，即使是季度分紅，也會先宣布分紅金額，然後再設定記錄日期，這是一個對股東友好的製度。

KRW, as an AICT company, has responded actively to company's AX demand, successfully winning large-scale projects from large companies and IT enterprises, thereby laying the basis for growth.

KRW作為AICT公司，積極回應企業的AX需求，成功贏得大公司和IT企業的大型項目，奠定了成長的基礎。

And under the multi-model strategy road map, we launched KT's proprietary LLM, Mi:dm 2.0, last July and will be completing AI full lineup with the unveiling of the open-source model and Microsoft collaboration model in sequence. Based on KT's proprietary model, Mi:dm 2.0, we won AI platform build projects from large companies, Gyeonggi provincial government and Korea Water Resources Corporation, further cementing our positioning in the public sector.

而在多模型策略路線圖下，我們在去年7月推出了KT自主研發的LLM——Mi:dm 2.0，並將陸續推出開源模型和微軟合作模型，從而完成AI全系列產品線。基於KT專有模型Mi:dm 2.0，我們贏得了大型公司、京畿道政府和韓國水資源公司等的AI平台建設項目，進一步鞏固了我們在公共部門的地位。

Microsoft collaboration continues also as we roll out new services. In July, AI agent powered by Azure open AI-based LLM was integrated into Genie TV, expanding the AI use case. In the second half, we plan to launch AI model better tailored for Korea that is powered by ChatGPT for Omni and secure public cloud which uses top-notch security protocol, confidential computing in order to kick-start our reach into the market.

隨著我們推出新服務，我們與微軟的合作也將持續下去。7 月，由 Azure 開放 AI LLM 支援的 AI 代理程式整合到 Genie TV 中，擴展了 AI 用例。下半年，我們計劃推出更適合韓國的AI模型，該模型由Omni的ChatGPT和使用頂級安全協議、機密計算的安全公共雲提供支持，以啟動我們進入市場的進程。

To proactively strengthen security, KT has a plan to invest cumulative KRW1 trillion in information security over five years. To make sure customers can feel safe in using telecom services in their everyday routine, we will innovate our information security system.

為了積極加強安全，KT 計劃在五年內累積投資 1 兆韓元用於資訊安全。為了讓客戶在日常生活中安心使用電信服務，我們將創新資訊安全系統。

From now onwards, I will move on to financial results for second-quarter 2025. Operating revenue increased 13.5% year over year, reaching KRW7,427.4 billion. Operating profit was up 105.4% year over year, reaching KRW1,014.8 billion on the back of balanced growth from telco business and the group's core portfolio as well as profitability improvement efforts and onetime gains from real estate sales. Net income increased 78.6% year over year to KRW733.3 billion, driven by higher operating profit. EBITDA was up 36.3% year over year, reporting KRW1,990.7 billion.

從現在開始，我將開始討論 2025 年第二季的財務表現。營業收入較去年同期成長13.5%，達到74,274億韓元。由於電信業務和集團核心業務的均衡成長、獲利能力的提升以及房地產銷售的一次性收益，營業利潤年增 105.4%，達到 10,148 億韓元。受營業利潤成長的推動，淨收入年增 78.6% 至 7,333 億韓元。EBITDA 年成長 36.3%，達到 19,907 億韓元。

Next page is operating expense. Despite a decline in labor costs due to costs of real estate sales project at [Kanggu] division and increase in COGS from growing wireless handset sales, operating expense was up 5.9% year over year, recording KRW6,412.6 billion.

下一頁是營運費用。儘管[Kanggu]部門的房地產銷售項目成本導致人工成本下降，以及隨著無線手機銷量增長導致銷貨成本增加，但營業費用仍比去年同期增長5.9%，達到6.4126萬億韓元。

Next is on financial statement. Debt-to-equity ratio as of June end of '25 was 123.5%, while net debt ratio edged up 3.3 percentage points year over year, reaching 36.8%.

接下來是財務報表。截至25年6月底，負債權益比率為123.5%，淨負債比率較去年同期上升3.3個百分點，達36.8%。

Next is CapEx. Total CapEx spend by KT and its major affiliates was in total KRW1,364.3 billion on a cumulative basis as of Q2 of '25. KT's separate basis cumulative CapEx as of Q2 was KRW845.8 billion, while CapEx of major group affiliates amounted to KRW518.5 billion.

接下來是資本支出。截至 2025 年第二季度，KT 及其主要附屬公司的資本支出總額累計達到 13,643 億韓元。截至第二季度，KT 單獨基礎累計資本支出為 8,458 億韓元，而主要集團附屬公司的資本支出總計 5,185 億韓元。

Next is on the breakdown of results by each business segment. Firstly, wireless revenue increased 0.9% year on year, reporting KRW1,781.7 billion. Whilst 5G subscribers accounted for 79.5% of total handset subscribers due to the impact from subscriber addition through MNP, MNO subscriber increased 3.4% Q-on-Q.

接下來是按每個業務部門劃分的業績細目。首先，無線營收年增0.9%，達到17,817億韓元。雖然受MNP用戶增加的影響，5G用戶佔手機用戶總數的79.5%，但MNO用戶較上季成長了3.4%。

Next, the fixed line business. On the back of GiGA Internet subscriber growth and expanded value-added services, broadband revenue increased 2.1% year over year, reporting KRW631.4 billion. On net IPTV subscriber ads and premium plan uptake, Media business posted 0.8% growth year over year. Home telephony revenue recorded KRW176.2 billion, up 0.4% year on year.

接下來是固網業務。在 GiGA Internet 用戶成長和加值服務擴大的推動下，寬頻營收年增 2.1%，達到 6,314 億韓元。在淨 IPTV 用戶廣告和高級套餐採用方面，媒體業務年增 0.8%。家庭電話收入達1762億韓元，年增0.4%。

Next, KT's B2B services. Despite streamlining of low-margin businesses, B2B service revenue posted 4.5% year-on-year growth on balanced growth coming from telecom and AI and IT services. Thanks to the growth of design and build projects and cloud business, AI IT business revenue saw 13.8% year-over-year growth.

接下來是KT的B2B服務。儘管精簡了低利潤業務，B2B服務收入仍年增4.5%，這得益於電信、人工智慧和IT服務的均衡成長。受惠於設計建造專案及雲端業務的成長，AI IT業務收入較去年同期成長13.8%。

Next, moving on to performances of our major subsidiaries. BC Card revenue fell 6.9% year on year to KRW909.8 billion as acquiring volume declined, but operating profit was kept flat year over year through risk management and profitability enhancement efforts.

接下來介紹一下我們主要子公司的業績。由於收單量下降，BC 卡收入年減 6.9% 至 9,098 億韓元，但透過風險管理和提高獲利能力的努力，營業利潤與去年同期持平。

Content subsidiaries reported 6% year-on-year revenue growth on the back of production and distribution expansion by KT Studio Genie and increase in subscribers of KT [Middie's] library. KT Cloud saw its revenue grow 23% year over year, driven by growing data center usage by global customers and expanded DBO project wins. KT Estate revenue increased 2.0% year on year, reaching KRW160.4 billion, driven by growth in rental revenue from office and hotels.

由於 KT Studio Genie 的製作和發行擴張以及 KT [Middie's] 庫訂閱用戶的增加，內容子公司的收入同比增長了 6%。受全球客戶資料中心使用量成長和 DBO 專案勝利擴大的推動，KT Cloud 的營收年增 23%。KT Estate 營收年增 2.0%，達到 1,604 億韓元，這得益於辦公室和飯店租金收入的成長。

This has been an update on KT's earnings for second-quarter 2025. KT will endeavor to complete the transformation into AICT company. And through successful execution of corporate value-add plans, we will drive KT's corporate value a notch higher. We look forward to your ongoing support and interest from the investors and analysts. Thank you very much.

這是 KT 2025 年第二季財報的最新情況。KT將努力完成向AICT公司的轉型。透過成功執行企業增值計劃，我們將進一步提升 KT 的企業價值。我們期待投資者和分析師繼續給予支持和關注。非常感謝。

For details, I do refer to the earnings material that we have given out. We will now take your questions from the participants. (Event Instructions)

有關詳細信息，我確實參考了我們提供的收益材料。我們現在將回答與會者提出的問題。（活動須知）

(Operator Instructions) Joonsop Kim, KB Securities.

（操作員指示）Joonsop Kim，KB證券。

I would like to ask two questions. First, on AI business direction going forward and second is a question relating to how you see the MNP market following the refuel of the handset subsidy act. Regarding the AI business direction, you've talked about the full AI lineup as well as your estimates as to a steep growth going forward from your AI and IT business. Because AI scope really includes wide-ranging aspects, I would like to know where KT wants to focus on going forward that will help us understand better in terms of your AI business direction into the future.

我想問兩個問題。首先，關於未來 AI 業務的方向；其次，您如何看待手機補貼法案重啟後的 MNP 市場。關於AI業務方向，您談到了完整的AI產品線以及對未來AI和IT業務快速成長的預測。由於 AI 範圍確實涵蓋了廣泛的方面，因此我想知道 KT 未來的重點是什麼，這將有助於我們更好地了解您未來的 AI 業務方向。

Second question, how do you see the MNP market following the repeal of the handsets -- lifting of the handset subsidy act because different people see the market differently, so I would like to understand as to what KT's thoughts are regarding the MNP market going forward.

第二個問題，在手機補貼法案廢除之後，您如何看待 MNP 市場，因為不同的人對市場有不同的看法，所以我想了解 KT 對未來 MNP 市場的看法。

Well, thank you for those questions. So regarding the first question on our AI business direction forward, I would like to just summarize that point into three main items.

好吧，謝謝你提出這些問題。因此，關於我們人工智慧業務未來方向的第一個問題，我想將其概括為三個主要內容。

Now the first strategy that we have is through the partnerships with global big techs like Microsoft as well as the partnership that we have, the exclusive licensing partnership that we have with Palantir, we've been able to really enhance our competitiveness and fill up the gap that we internally did not have. And by leveraging these aspects, we want to be able to provide new AI services to our customer base that includes secure public cloud as well as KGPT, or the more Korean tailored type of GPT services.

現在，我們的第一個策略是透過與微軟等全球大型科技公司建立合作夥伴關係以及與 Palantir 建立的獨家授權合作夥伴關係，我們能夠真正增強我們的競爭力並填補我們內部沒有的空白。透過利用這些方面，我們希望能夠為我們的客戶群提供新的人工智慧服務，包括安全的公有雲以及 KGPT，或更適合韓國的 GPT 服務。

The second strategy is, as I've mentioned during my opening presentation, we have taken on a multi-model-based strategy. So not only will we be using the Microsoft collaboration model, but as you know, over the past year, we've been developing our internal model, which is Midm 2.0, we will continuously make enhancements to that so that we can come closer to the needs that our customers have. We will also be leveraging open-source models like LLaMa to provide and build the AI services that our customers require.

第二個策略是，正如我在開幕演講中提到的，我們採取了基於多模型的策略。因此，我們不僅將使用 Microsoft 協作模型，而且如您所知，在過去的一年裡，我們一直在開發我們的內部模型，即 Midm 2.0，我們將不斷對其進行改進，以便我們能夠更貼近客戶的需求。我們還將利用 LLaMa 等開源模型來提供和建立客戶所需的人工智慧服務。

Moving on to the third strategy. We will be leveraging such AI capabilities and services and managing the network that we have and also providing media-related services. A good case in point is we've basically installed an AI agent that is based upon Microsoft Azure open service into our Genie TV set-top box as well as using such AI capabilities and enhancing the operational efficiency of our 5G base stations. So we will be continuously leveraging such AI capabilities.

繼續討論第三個策略。我們將利用這些人工智慧功能和服務，管理我們現有的網絡，並提供與媒體相關的服務。一個很好的例子是，我們基本上在我們的 Genie 電視機上盒中安裝了一個基於 Microsoft Azure 開放服務的 AI 代理，並利用這種 AI 功能提高了我們 5G 基地台的運作效率。因此我們將不斷利用這種人工智慧能力。

Responding to your second question about what impact there was following the lifting of the handset subsidy act as well as the market impact. Firstly, as you know, even though there was a launch of Galaxy flagship handset model, we did not see any overheating of competition in the market.

回答您的第二個問題，手機補貼法案取消後有什麼影響以及對市場有什麼影響。首先，如您所知，儘管推出了 Galaxy 旗艦手機型號，但我們並沒有看到市場競爭過熱。

But of course, if -- when the iPhone, the next versions are introduced into the market, competition in the market may heat up. So there is that possibility. But having said that, we do not believe it is our belief that it is not going to be long-lasting, even if that happens.

但當然，如果——當 iPhone 的下一代版本進入市場時，市場競爭可能會變得更加激烈。所以有這種可能性。但話雖如此，即使發生這種情況，我們也不認為它不會持久。

Now I say that because of three main reasons. First being already the 5G penetration is above 80%. And also, the handset replacement cycle has gotten longer compared to the past. And right now, it is an important timing for all the telcos to really focus and invest into the new business areas relating to AI and IT. So that is the basis upon which I believe that that's why the competition in the wireless market, even if it exists, it's not going to be long lasting.

我這樣說主要有三個原因。首先是5G普及率已經超過80%。而且手機更換週期也比過去更長了。現在，對於所有電信公司來說，這是一個真正關注和投資與人工智慧和 IT 相關的新業務領域的重要時機。因此，我相信，無線市場的競爭即使存在，也不會持續太久。

Hoi Jae Kim, Daishin Securities.

Hoi Jae Kim，大信證券。

I'm Hoi Jae Kim from Daishin Securities. Before asking the question, I would like to first congratulate [Jaegil Choi] the new IRO. I look forward to very good and productive communication going forward as we've done in the past.

我是大信證券的 Hoi Jae Kim。在提出這個問題之前，我想先祝賀[Jaegil Choi]成為新任 IRO。我期待我們今後能夠像過去一樣進行良好且富有成效的溝通。

So my two questions are -- the first is your second-quarter results have been quite outstanding. I would like to know what your therefore outlook is for the second half of the year. And regarding the Value-Up plan, you've made the implementation disclosure already. Would like to understand as to what the update is. Would you be considering any changes to your dividend or your share buyback plans?

所以我的兩個問題是——第一個問題是，你們第二季的業績相當出色。我想知道您對今年下半年的展望是什麼。關於 Value-Up 計劃，您已經進行了實施揭露。想了解更新的內容。您是否考慮對股利或股票回購計劃進行任何更改？

Responding to your question, the first one on the second half outlook. In Q2, there was, yes, a significant one-off gain from our real estate business. So that had a big impact on bringing a good performance. But even aside from that, if you look at our separate basis statements, you will see that our year-over-year performance had been quite good -- it was quite good. It was very good.

回答你的問題，第一個問題是關於下半年的展望。在第二季度，我們的房地產業務確實獲得了可觀的一次性收益。這對取得良好的表現有很大影響。但即使除此之外，如果你看一下我們單獨的基礎報表，你會發現我們的年比表現相當不錯——相當不錯。非常好。

And we think that we will be able to continue on with that good momentum into the second half of the year considering the fact that we will be able to sustain a very solid service revenue uptrend.

我們認為，考慮到我們能夠維持非常穩固的服務收入上升趨勢，我們將能夠在下半年繼續保持這種良好勢頭。

Now on the cost side, we were able to drive an improvement in our head count. And so we are keeping our labor costs. We're managing that quite well. And on the depreciation side, we have completed the depreciation on our 5G. So we see the depreciation costs coming down.

現在從成本方面來看，我們能夠推動員工人數的改善。因此我們維持勞動成本。我們在這方面做得相當好。在折舊方面，我們已經完成了5G的折舊。因此我們看到折舊成本正在下降。

But there may be some concern on the commissions paid as well as selling-related expenses. There may be slight risk there, but these are numbers that are linked to our earnings performance. So we're not at all greatly worried about this item.

但人們可能會對支付的佣金以及銷售相關費用感到擔憂。這可能有輕微的風險，但這些數字與我們的獲利表現有關。所以我們根本不太擔心這個產品。

Regarding the second question about our dividend payout plan. First off, basically, our basis upon which we make the dividend decision is 50% of adjusted net profit. And already we have declared and made the decision on dividend per share of KRW600 already, which is actually in excess of that criteria. Having said that, as long as we -- and as long as we are confident that we'll be able to carry on with the performance levels into the Q3 and Q4, I believe that a minimum the BOD will continue to make such decisions in alignment with the market expectations.

關於第二個問題，關於我們的股利支付計畫。首先，我們做出股利決定的依據基本上是調整後淨利的 50%。而且我們已經宣布並決定每股派息 600 韓元，這實際上已經超出了該標準。話雖如此，只要我們——只要我們有信心能夠在第三季度和第四季度保持這樣的業績水平，我相信董事會至少會繼續根據市場預期做出這樣的決定。

In terms of how our shareholder return program will look like after next year, of course, the BOD will make appropriate decision as we go forward. But in light of the fact that we are seeing an improvement in our bottom line and the fact that our dividend program is shareholder-friendly and market friendly, I can tell you that you can expect that we will not, in any circumstances, fail the expectation of the market.

至於明年之後我們的股東回報計畫將會是什麼樣的，董事會當然會在我們前進的過程中做出適當的決定。但鑑於我們的底線正在改善，而且我們的股息計劃對股東和市場有利，我可以告訴你們，你們可以期待，在任何情況下，我們都不會辜負市場的期望。

In terms of the Value-Up program, under the Value-Up program, we were making additional share buyback in the size of KRW1 trillion. We've already done KRW250 billion. And over the coming three years, we will, in sequence, be making that share buyback in the amount of KRW750 billion.

就Value-Up計劃而言，根據Value-Up計劃，我們將額外回購1兆韓元的股票。我們已經完成了2500億韓元。未來三年內，我們將陸續回購總額達 7,500 億韓元的股票。

This ends the Q&A for today. Thank you for your time and interest. We will close the earnings call for the second quarter of 2025. Thank you for joining us despite your very busy schedule.

今天的問答到此結束。感謝您的時間和關注。我們將結束 2025 年第二季的財報電話會議。感謝您在百忙之中抽空參加我們的活動。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中的英文陳述是由現場翻譯人員宣讀的。翻譯由贊助此活動的公司提供。