KT reported a decline in both revenue and operating profit for the second quarter of 2026, influenced by a base effect from last year's real estate sales profits.
On August 12, KT announced that its consolidated revenue for Q2 2026 was 6.6799 trillion won, with an operating profit of 648.3 billion won, marking decreases of 10.1% and 36.1%, respectively, compared to the same period last year. The net profit for the quarter was 480.6 billion won, down 34.5% year-on-year. A KT official explained, "The decrease in net profit was affected by penalties related to personal data breaches."
On a separate basis, revenue was 4.5235 trillion won, a 5.2% decline from the previous year, while operating profit fell 17% to 389 billion won.
The official noted, "The decrease in operating profit compared to last year was due to a one-time effect from real estate sales profits, but we saw an increase compared to the first quarter, thanks to growth in data centers, real estate, and improved performance from our content subsidiaries."
In the wireless sector, Q2 revenue was 1.7497 trillion won, down 1.8% from the same period last year, impacted by customer churn during the customer reward program and waiver period that continued until last month.
Revenue from the wired business was 1.3148 trillion won, a 1.5% decrease year-on-year. Specifically, the internet segment saw a 1.1% increase in revenue to 638 billion won, driven by growth in GiGA internet subscribers and expanded value-added services. However, the media segment reported a 0.5% decline to 524.5 billion won, despite an increase in IPTV subscribers, due to reduced advertising and pay-per-view revenue.
Revenue from the enterprise services segment fell 2.3% to 901.1 billion won compared to the previous year.
Among its subsidiaries, KT Estate, the real estate arm, showed significant growth, with revenue rising 80.1% year-on-year to 288.9 billion won, driven by growth in the hotel business and recognition of sales from the Daejeon Dunsan project.
KT Cloud, a key player in the artificial intelligence data center (AIDC) business, also reported a 19.8% increase in revenue to 265.4 billion won, supported by higher operational rates at its Gasan data center and expansion in design, build, and operate (DBO) projects.
The content subsidiaries continued to improve their performance, benefiting from a recovery in advertising and growth in content business. KT Nasmedia saw improved results due to balanced growth in digital outdoor advertising and mobile platform ads. KT Studio Genie expanded its partnerships in online video services (OTT) and diversified content distribution based on premium original content. KT Millie's Library continued its focus on the e-book subscription business.
K Bank maintained a solid performance, supported by growth in loan assets and improved net interest margins. As of June 30, 2026, the bank's deposit balance was 26.6 trillion won, and its loan balance was 19.8 trillion won, with a total customer base of 16.45 million. In the second half of the year, K Bank plans to enhance profitability through expanded loans for small business owners and improved margins.
KT aims to accelerate its transition to an 'AX Platform Company,' targeting a return on equity (ROE) of 9-10% by 2028. The company plans to double AX revenue by 2028 compared to 2025, establishing itself as a hub for AX in Asia. To achieve this, KT intends to secure an additional 1GW of AIDC capacity and 90Tbps of submarine cable capacity by 2031.
To improve profitability, KT will expand the rationalization of low-profit businesses and enhance operational efficiency through AX internalization. The company also plans to accelerate the monetization of non-core assets, including idle real estate and investment assets.
KT Chief Financial Officer Min Hye-byeong stated, "In the second half of the year, we will continue to focus on growth centered around our core portfolio while enhancing customer data protection and security capabilities to build customer trust and enhance corporate value."
* This article has been translated by AI.
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