KT reported cumulative revenue of KRW 13.4583 trillion and cumulative operating profit of KRW 1.1310 trillion for the first half of 2026, down 5.7% and 33.6% respectively year-on-year. Cumulative net income also fell 33.2% to KRW 868.9 billion.

The main reason for the decline in performance is the base effect from large one-time real estate sales gains reflected in the second quarter of last year, which led to a record-high operating profit for the same period last year. KT explained, "The decline in key financial indicators for the second quarter of 2026 is due to the base effect of one-time sales gains reflected in the same period last year."

Q2 Performance: Year-on-Year Decline, Quarter-on-Quarter Profitability Improvement

On a consolidated basis, KT's revenue for the second quarter of this year reached KRW 6.6799 trillion and operating profit was KRW 648.3 billion. Revenue fell 10.1% and operating profit dropped 36.1% compared to the same period last year. Net income declined 34.5% to KRW 480.6 billion, while net income attributable to controlling interests also fell 36.0% to KRW 440.1 billion. Profit from continuing operations before income taxes decreased 33.7% to KRW 646.1 billion.

On the other hand, the picture is different compared to the first quarter of this year. While Q2 revenue slipped slightly by 1.5%, operating profit surged 34.3% and net income rose 23.7%, showing an improving profitability trend. On a non-consolidated basis, the company posted revenue of KRW 4.5235 trillion and operating profit of KRW 389.0 billion.

Trends by Business Segment: AX and Cloud Drive Growth

• Wireless Business: Service revenue decreased 1.8% year-on-year due to the impact of a customer rewards program. As of the end of Q2, 5G subscribers accounted for 83.2% of total handset subscribers.
• Fixed-line Business: Despite an expanding subscriber base, revenue declined due to a decrease in home fixed-line phone users. The internet business grew 1.1%, driven by an increase in subscribers centered on Gigabit Internet and expanded use of value-added services.
• AX Business: Revenue surged 22.3% year-on-year, fueled by growing AI adoption demand primarily in the financial sector and double-digit growth from KT Cloud.
• KT Cloud: Achieved double-digit growth driven by the launch of a new data center and the expansion of the DBO business.

Mid- to Long-Term Strategy: Aiming to Become an AX Hub

KT is expanding its AX references across industries such as finance, public sector, and manufacturing to enhance its competitiveness in the B2B AX business. The company plans to more than double its AX revenue by 2028 compared to 2025 and emerge as Asia's AX connectivity hub. To this end, KT intends to secure an additional 1 GW of AIDC capacity and 90 Tbps of submarine cable capacity by 2031.

KT CFO Min Hye-byeong expressed the company's commitment to steadily advancing plans to enhance corporate value by focusing on growth centered on its core portfolio, protecting customer information, and strengthening security capabilities in the second half of the year.