KT Corp (KT) 2025 Q3 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 third 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. (Operator Instructions)

早安，晚上好。感謝各位參加本次電話會議，現在我們將開始KT公司2025財年第三季獲利結果會議。我們先請KT和IRO致歡迎辭，然後財務長將介紹獲利結果並回答各位的問題。（操作說明）

Now we would like to turn the conference over to KT, IRO.

現在我們想把會議交給KT，IRO。

Good afternoon. This is Jaegil Choi, KT's IRO. We will begin the third quarter 2025 earnings presentation.

午安.這是KT的IRO崔在吉。我們將開始進行2025年第三季財報會。

Please be reminded that today's presentation includes K-IFRS based financial estimates and operating results which have not yet been 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.

請注意，今天的簡報包含基於韓國國際財務報告準則 (K-IFRS) 的財務估計和經營業績，這些估計和業績尚未經過外部審計師審核。因此，除了歷史實際數據外，我們無法保證財務和業務數據的準確性和完整性。因此請注意，這些數據未來可能會有所變化。

With that said, let me now invite our CFO, hung Min to discuss KT's Q3 2025 earnings.

接下來，我邀請我們的財務長洪敏先生來討論KT 2025年第三季的收益。

Good afternoon, this is Chang Min, KT's CFO. Before going into the earnings for Q3 2025, I would like to extend my sincere apologies to our customers and investors for the unauthorized micropayments and infringement incident perpetrated through the illegal base station connection. KT is currently implementing a comprehensive plan to compensate customers affected by such unauthorized micropayments and personal information breach.

下午好，我是KT的財務長張敏。在介紹 2025 年第三季收益之前，我想就透過非法基地台連接進行的未經授權的小額支付和侵權事件，向我們的客戶和投資者致以誠摯的歉意。KT目前正在實施一項全面的計劃，以補償受此類未經授權的小額支付和個人資訊外洩影響的客戶。

Starting November 5, KT is replacing U-SIM free of charge for all of its customers. Going forward, KT will do its utmost to put in place technical and system-based guard valves to protect customers and to ensure that such incidents are prevented through preemptive and far-reaching security measures.

從11月5日起，KT將為所有客戶免費更換U-SIM卡。展望未來，KT 將竭盡全力建立技術和系統層面的安全保障機制，以保護客戶，並透過先發制人、影響深遠的安全措施，確保防止此類事件的發生。

On November 4th we officially began the process for CEO nomination. KT's Director Candidate nomination Committee, comprising of all of the independent auditors, will select a pool of candidates from various different channels to recommend one candidate to the Board of Directors before the end of the year. BOD will then make the final confirmation and the new CEO will be appointed at the General Meeting Of shareholders.

11月4日，我們正式啟動了CEO提名程序。KT 的董事候選人提名委員會由所有獨立審計師組成，將從各種不同管道選出一群候選人，並在年底前向董事會推薦一名候選人。董事會隨後將做出最終確認，新任執行長將在股東大會上任命。

Now I will move on to KT's third quarter earnings for 2025. Based on our telco business and continuing growth of group's core portfolio, as well as real estate profit gained from [Kwang Jin] District Development, KT sustained growth in revenue and operating profit this quarter. We are also collaborating with global big tech companies to launch specific services and have secured a solid footing for AX business execution by opening KT Innovation Hub, placing momentum behind the transformation towards an AICT company.

接下來我將分析KT 2025年第三季的盈餘狀況。基於我們的電信業務和集團核心業務組合的持續成長，以及從[廣進]地區開發中獲得的房地產利潤，KT本季實現了收入和營業利潤的持續成長。我們也與全球大型科技公司合作推出特定服務，並透過開設 KT 創新中心為 AX 業務執行奠定了堅實的基礎，推動了向 AICT 公司的轉型。

We released consecutively our proprietary model medium K2.0 SOTA K, which is a model developed in collaboration with Microsoft, as well as LamaK based on Metas opensource technology, introducing AI LLM lineup catering to Korean requirements. Under the AI multimodal strategy, we will expand AI driven usage base across various verticals including media press, education, public and financial domain.

我們先後發表了自主研發的中型 K2.0 SOTA K 模型（與微軟合作開發），以及基於 Metas 開源技術的 LamaK 模型，推出了滿足韓國需求的 AI LLM 產品線。在人工智慧多模態策略下，我們將擴大人工智慧驅動的應用範圍，涵蓋媒體新聞、教育、公共和金融等各個垂直領域。

In October we opened KT Innovation Hub under strategic partnership with Microsoft, where we can hold exhibitions on AX and AI experience and provide industry specific consulting services. AI experts of both companies together with our clients will be working together in the hub to explore new AX business opportunities.

10 月，我們與微軟建立了策略合作夥伴關係，開設了 KT 創新中心，我們可以在這裡舉辦 AX 和 AI 體驗展覽，並提供行業特定的諮詢服務。兩家公司的 AI 專家將與我們的客戶一起在中心共同工作，探索新的 AX 業務機會。

Third quarter dividend is KRW601 per share as we maintained 20% higher dividend payout year over year, as was the case in Q1 and Q2. Corporate value enhancement plan also is ongoing as planned. We had concrete results in securing capacity required for structural transformation into becoming an AICT company, with SOTA K launch being one of such endeavors. We continue to work on streamlining assets and driving profitability enhancements through rationalizing low margin businesses and liquidation of non-core assets. As part of the value enhancement plan, we also completed KRW250 billion share buyback on August 13.

第三季股息為每股 601 韓元，與第一季和第二季一樣，我們維持了比去年同期高出 20% 的股息支付率。企業價值提升計畫也按計畫進行。我們在確保結構轉型為 AICT 公司所需的能力方面取得了實際成果，SOTA K 的推出就是其中一項努力。我們將繼續致力於精簡資產，並透過合理化低利潤業務和清算非核心資產來提高獲利能力。作為價值提升計畫的一部分，我們也於 8 月 13 日完成了 2,500 億韓元的股票回購。

Next on financial performance for Q3 of F25. Operating revenue was up 7.1% year-over-year, reporting KRW7,126.7 billion, and sustained growth from core businesses, including telecom, real estate, cloud and data center and profitability improvement efforts, as well as one-time real estate sales gains. Operating profit was up 16% YoY, reporting KRW538.2 billion. Net income was up 16.2% YoY, recording KRW445.3 billion driven by increase in operating profit. EBITDA increased 5.2% YoY, reaching KRW1,503.9 billion.

接下來是2025財年第三季的財務表現。營業收入年增 7.1%，達到 7,1267 億韓元，主要得益於電信、房地產、雲端運算和資料中心等核心業務的持續成長以及獲利能力的提升，此外還有一次性房地產銷售收益。營業利潤年增 16%，達到 5,382 億韓元。淨利潤年增 16.2%，達到 4,453 億韓元，主要得益於營業利潤的成長。EBITDA年增5.2%，達15039億韓元。

Next page, I will walk through the operating expense items. Operating expense increased 6.4% year-on-year to KRW6,588.6 billion, an increase in cost of goods sold, cost of services, and selling expense. Next is financial position of the company. Debt to equity ratio as end of September 2025 was 123.3%, while net debt ratio went up 4.2 percentage points year over year, reaching 34.5%. Next on CapEx.

下一頁，我將逐項介紹營運費用項目。營業費用年增 6.4% 至 6,5886 億韓元，其中銷售成本、服務成本和銷售費用均有所增加。接下來是公司的財務狀況。截至 2025 年 9 月底，負債權益比率為 123.3%，而淨負債比率較去年同期上升 4.2 個百分點，達到 34.5%。接下來是資本支出。

Total CapEx up to the third quarter of '25 of KT and its main subsidiaries accounted for KRW1,963.7 billion. KT's separate basis CapEx was KRW1,329.5 billion, while major subsidiaries spent KRW634.2 billion. Next, performance breakdown by -- wireless revenue was up 4% year-on-year, reaching KRW1,809.6 billion.

截至2025年第三季度，KT及其主要子公司的總資本支出為19,637億韓元。 KT的單獨計算的資本支出為 13,295 億韓元，而主要子公司支出為 6,342 億韓元。接下來是業績細分－無線業務營收年增 4%，達到 1,8,096 億韓元。

Subscriber base expansion around 5G drove the top-line growth with 5G penetration as of third quarter end, reaching 80.7%. Next is fixed line business. Broadband internet revenue increased 2.3% year-on-year to KRW636.7 billion on the back of giga internet subscriber growth and value-added services.

5G 用戶群的擴張推動了營收成長，截至第三季末，5G 滲透率達到 80.7%。接下來是固定電話業務。由於千兆網路用戶成長和加值服務，寬頻網路營收年增 2.3%，達到 6,367 億韓元。

Backed by higher IPTV subscriber net edition and sale of premium plans, media business posted growth of 3.1% year-over-year. Home telephony revenue fell 6.6% year-over-year to KRW160.9 billion. Next is B2B business. B2B service revenue reported 0.7% year-over-year growth on the back of enterprise messaging, corporate broadband, and network-based business growth, despite streamlining of low margin business.

得益於 IPTV 用戶淨增和高級套餐銷售的成長，媒體業務年增 3.1%。家庭電話收入較去年同期下降 6.6% 至 1,609 億韓元。接下來是B2B業務。儘管精簡了低利潤業務，但由於企業訊息、企業寬頻和網路為基礎的業務成長，B2B 服務收入仍實現了 0.7% 的同比增長。

For the AI and IT business, revenue came down 5.7% year-over-year due to structural enhancement work done on certain businesses in line with our selective focus strategy, notwithstanding AICC project wins from large customers and ongoing monetization. Next is performance of major subsidiaries. Revenue from content subsidiaries dipped 1.8% year-over-year due to less number of original title production.

儘管 AICC 從大客戶那裡贏得了項目，並且持續實現盈利，但由於根據我們的選擇性重點策略對某些業務進行了結構性改進工作，AI 和 IT 業務的收入同比下降了 5.7%。接下來是主要子公司的業績。由於原創作品數量減少，內容子公司的營收年減了 1.8%。

KT cloud revenue was up 20.3% year-on-year following higher data center usage by global clients and AI cloud demand growth. KT estate revenue was up 23.9% year-on-year to KRW186.9 billion backed by good performance from hotel business and new development projects.

由於全球客戶資料中心使用量增加以及人工智慧雲端需求成長，KT 雲端營收年增 20.3%。受飯店業務和新開發案的良好表現推動，KT房地產收入年增23.9%，達到1,869億韓元。

This ends the report on KT's third quarter earnings results. Once again, I would like to extend my sincere apology for causing concern over unauthorized micropayments and the infringement incident. KT will cooperate with the government's investigation process and exert our utmost effort in ensuring network security and stronger customer protection.

KT第三季財報到此結束。我再次就未經授權的小額支付和侵權事件造成的擔憂表示誠摯的歉意。KT將配合政府的調查程序，並盡最大努力確保網路安全和加強對客戶的保護。

Also, we will bring true AICT transformation and by successfully implementing corporate value enhancement plan, we will endeavor to drive stepwise upgrade in KT's corporate value. Once again thank you to our investors and analysts for your continued interest and support. For more information, please refer to the documents and materials that we had previously circulated. We will now begin the Q&A session to give as much opportunity as possible. I would like to ask that you limit your questions to two per person.

此外，我們將帶來真正的AICT轉型，並透過成功實施企業價值提升計劃，努力推動KT企業價值的逐步提升。再次感謝各位投資人和分析師一直以來的關注與支持。更多資訊請參閱我們先前分發的文件和資料。現在我們將開始問答環節，盡可能提供給大家充分的機會。請各位將提問數量限制在兩個以內。

(Operator Instructions)

（操作說明）

Hoi Jae Kim, Daishin Securities.

Hoi Jae Kim，大信證券。

Thank you for taking my question. I'm Kim Hoi Jae Daishin Securities. You were able to record good financial performance up until the third quarter. I know that for the fourth quarter, usually there is a seasonality expense related impact, so it will be hard to make that projection but still would like to get some color as to what your projection is going forward for the fourth quarter.

感謝您回答我的問題。我是大信證券金會宰。直到第三季度，你們的財務表現都表現良好。我知道第四季度通常會受到季節性支出的影響，因此很難做出預測，但我仍然想了解您對第四季度的預測情況。

And you've decided to pay out dividend per share of KRW601 up until Q3, just wondering whether there is further upside to the dividend payment for -- when the fourth quarter comes and also until so in 2025 you had decided to do a share buyback and cancellation in the amount amounting to KRW1 trillion, just wondering whether in 2026 you will be able to grow that size of share buyback and cancellation.

您已決定在第三季之前每股派發 601 韓元的股息，我想知道在第四季度以及 2025 年之前，股息支付是否還有進一步上漲的空間。您已決定進行總額達 1 兆韓元的股票回購和註銷，我想知道在 2026 年您是否能夠擴大股票回購和註銷的規模。

Thank you for that question. Responding to the question on Q4 outlook, as you have correctly mentioned, in the fourth quarter, there are usually seasonality issues. And also we have to consider for the measures to compensate for our customers and also there are certain uncertainties that currently exist relating to the fines or the penalties that we will be subject to. So at this point we are making a quite conservative stance when it comes to making a forecast going forward, but we are putting our utmost efforts to minimize any impact or any damage to our customers and also to our financials.

謝謝你的提問。關於第四季度展望的問題，正如您所正確提到的，第四季度通常會受到季節性因素的影響。此外，我們還必須考慮如何補償我們的客戶，而且目前對於我們將要面臨的罰款或處罰也存在一些不確定性。因此，目前我們在對未來做出預測時採取了相當保守的態度，但我們正在盡最大努力將對客戶和我們財務狀況的任何影響或損害降到最低。

Now, however, because we were able to report quite solid performance up until Q3, if we were to make projections on the full year 2025 financials thanks to our efforts in growing our top-line growth at the same time improving the profitability and considering that there was also a one-off gain from the NCP business, the real estate. And also due to the fact that we are able to drive our core business centric group affiliate growth, we believe that both on a consolidated and separate basis we could achieve an year over year growth.

然而，由於我們在第三季之前取得了相當穩健的業績，如果我們要對 2025 年全年財務狀況進行預測，這得益於我們在提高營收成長的同時提高了盈利能力，並且考慮到 NCP 業務（即房地產）也帶來了一次性收益。此外，由於我們能夠推動以核心業務為中心的集團附屬公司成長，我們相信，無論從合併層面或單獨層面，我們都能實現同比成長。

On the second question, basically when it comes to the dividends, yes, there will be a one-time impact coming from this hacking incident, and there will be certain uncertainties in terms of its impact on the financials. However, we will be considering the annual based financial performance as well as the expectations that the shareholders have based upon which I am most certain that our BOD will make a reasonable decision.

關於第二個問題，就股利而言，是的，這次駭客事件將會產生一次性影響，而且其對財務狀況的影響存在一定的不確定性。但是，我們將考慮年度財務表現以及股東的期望，我相信董事會將據此做出合理的決定。

Lastly, regarding our announcement of the plan to do the share buyback and the cancellation amounting to a total size of KRW1 trillion. So for this year we had already conducted the buyback and cancellation amounting to KRW250 billion and your question was whether for next year can you expect about the same amount or more, bigger as we go forward.

最後，關於我們宣布的總額達 1 兆韓元的股票回購和註銷計畫。所以今年我們已經完成了總額達 2500 億韓元的股票回購和註銷，你的問題是明年是否可以預期達到相同或更高的金額，隨著時間的推移，金額還會更大。

I can tell you that our value of plan will continue to be implemented. And in consideration of the confidence that the market is giving us, we will make sure that either this could happen on the same size basis as it was for this year or for next year, or there could be certain adjustments. We will very flexibly and nimbly respond to changes in the overall operational backdrop in deciding on the specific size.

我可以告訴大家，我們的價值計畫將繼續執行。考慮到市場給予我們的信心，我們將確保今年或明年能夠以相同的規模進行，或進行一些調整。我們將根據整體營運環境的變化，靈活敏捷地決定具體規模。

Next question, please.

下一個問題。

Chan-young Lee, Eugene Investment & Securities.

李燦英，Eugene投資證券。

Thank you. I am Lee Chan-young from Eugene Investment and Securities. My question relates to the recent hacking incident. I would like to understand as to what the financial impact will be in line with your compensation to the customers and your subscribers and also for the measures that you are putting in place to make sure that you prevent a recurrence of such incidents going forward and would like to know the extent of this expense that is currently captured in Q3 numbers and also going forward what will be the timing or the scope of that expense.

謝謝。我是來自 Eugene Investment and Securities 的 Lee Chan-young。我的問題與最近發生的黑客事件有關。我想了解，根據您對客戶和訂閱用戶的賠償，以及您為防止此類事件再次發生而採取的措施，財務影響會是怎樣的。我還想了解目前已計入第三季財務數據的這筆費用的規模，以及未來這筆費用的發生時間和範圍。

Thank you for that question. As I've mentioned before, we have put in place a measure and a compensation plan to compensate for any harm that has been inflicted due to the unauthorized micropayment incident, as well as the data breach issue. Now, so, and also on November 5, we had made the announcement that we will be replacing the cards of all of the KT customers and if when we go through this investigation process by the government as well as the police if additional harm is identified, then eventually the final amount of the compensation will be determined.

謝謝你的提問。正如我之前提到的，我們已經制定了一項措施和補償計劃，以彌補因未經授權的小額支付事件以及資料外洩問題造成的任何損害。所以，11月5日，我們宣布將更換所有KT客戶的銀行卡。如果政府和警方在調查過程中發現其他損害，最終賠償金額將另行確定。

Now in terms of the timing as well as the size of this expense, we cannot make a perfect prediction based on where we are today, however, we believe that in terms of the USIM chip replacement, the relevant costs will be recognized under Q4 figures. There's also free data that we are planning to provide and KRW150,000 discount on the handset tariff, as well as certain other expenses. Now these expenses, when they are actually incurred, that will be the timing upon which it will be booked in our financials.

至於這筆費用的時間和規模，我們目前還無法做出完美的預測，但是，我們相信，就 USIM 晶片更換而言，相關成本將在第四季度的數據中確認。我們還計劃提供免費流量，並對手機資費以及其他一些費用提供 15 萬韓元的折扣。當這些費用實際發生時，我們將以此時間為準將其記入財務報表。

Now, we've also already made an announcement to the market that for the coming five years that we have put in place an information security related investment in the amount that exceeds KRW1 trillion. We've actually, communicated that plan into the market and looking back. At our track record we've been investing about KRW120 billion to KRW130 billion on a per annum basis for this security purposes, so we believe that this KRW1 trillion, which we'll be investing in the upcoming five years is not going to be overly burdensome for the company.

現在，我們也向市場宣布，未來五年，我們將投入超過 1 兆韓元用於資訊安全相關領域。實際上，我們已經將該計劃傳達給了市場，現在回過頭來看。根據我們以往的記錄，我們每年都會為此安全目的投資約 1,200 億至 1,300 億韓元，因此我們相信，未來五年我們將投資的這 1 兆韓元不會對公司造成過重的負擔。

Next question, please.

下一個問題。

Eunjung Shin, DB Securities.

申恩貞，DB證券。

Thank you. I just have one question. Your CEO appointment process has just begun. Can you just walk us through the process under which your new CEO will be appointed, and when there is a new CEO that comes into office, will there be any changes to the current value of program that the company has?

謝謝。我只有一個問題。您的執行長任命流程才剛開始。能否詳細介紹貴公司新任執行長的任命流程？新任執行長上任後，公司目前的價值計畫是否會有任何變化？

Thank you for that question. Let me walk you through our CEO appointment process. We've actually officially kickstarted the discussion process on appointment of the new CEO as of November 4, and under the BOD rules, there is going to be a director candidate recommendation committee that's going to be comprised of all of our independent directors who are eight of them in total, and they will go through the relevant processes.

謝謝你的提問。讓我帶您了解我們的執行長任命流程。實際上，我們已經從 11 月 4 日正式啟動了關於任命新 CEO 的討論程序，根據董事會規則，將成立一個董事候選人推薦委員會，該委員會由我們所有的獨立董事組成，總共有八名獨立董事，他們將按照相關程序進行遴選。

First off, we begin with the candidacy pool of the CEO who's going to be recommended by a third-party, an outside entity, and also we will go through an open call process as well and also receive recommendations from the current shareholders as well as include a candidate from internally from inside company. So the director of candidate recommendation committee will then go through the screening and vetting process based upon the documentation and we will also engage in interviews and by the end of the year, the committee is going to select one CEO candidate to be tabled at the BOD.

首先，我們將從執行長的候選人庫開始，候選人將由第三方（外部實體）推薦，同時我們也會進行公開徵集，並接受現有股東的推薦，也會從公司內部選拔一名候選人。因此，候選人推薦委員會主任將根據文件進行篩選和審查，我們也將進行面試，到年底，委員會將選出一名執行長候選人提交董事會審議。

Though this one candidate that is recommended by the recommendation committee is going to be tabled at the BOD. BOD making the final confirmation on that candidate, and this candidate will go through the general meeting of shareholders deliberation process in 2026 to be finally appointed as the CEO of the company.

雖然推薦委員會推薦的這位候選人將被提交給董事會。董事會將對該候選人進行最終確認，該候選人將在 2026 年經過股東大會審議程序，最終被任命為公司執行長。

Lastly, your question on the consistency of the sustainability of the current value of plan that's in place now, the company went through the BOD resolution last November and had made appropriate market disclosure, and we also went through the disclosure on the implementation progress in May as well.

最後，關於您提出的當前計劃價值可持續性的問題，公司去年 11 月通過了董事會決議，並進行了適當的市場披露，我們也在 5 月份披露了實施進展。

And so I do not think that there is a correlation between the CEO change and the changes to the value of plan. Basically because of the new CEO, it's not that it's the value of plan itself is going to be made invalid, for instance, because the BOD understands the direction for the company that is stipulated in the value of plan and actually the value of plan is a commitment and promise that we make to the market and therefore I believe the action plans that are included in the plan itself is going to be sustained.

因此，我認為CEO的更迭與計劃價值的變化之間沒有關聯。基本上，由於新任執行長的到來，計劃本身的價值並不會因此而失效，例如，因為董事會理解計劃中規定的公司發展方向，而計劃的價值實際上是我們對市場做出的承諾，因此我相信計劃中包含的行動計劃將會得到維持。

There are no questions in the queue right now.

目前隊列中沒有問題。

With no questions in the queue, we would now like to close the Q&A session. Thank you everyone for your interest and for your questions and once again, thank you very much for joining us despite your very busy schedules. This ends KT's third quarter 2025 earnings call. Thank you.

由於沒有其他問題需要提問，我們現在結束問答環節。感謝大家的關注與提問，再次感謝大家百忙之中抽空參加。KT 2025年第三季財報電話會議到此結束。謝謝。

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.

本記錄稿中的英文陳述是由現場通話中的口譯員翻譯的。本次活動的翻譯人員由活動贊助公司提供。