[News Space=Reporter seungwon lee] KT has achieved its highest annual sales since going public in 1998 through a strategy of strengthening its core business competitiveness by promoting transformation into an AICT company even in difficult external management environments such as the economic recession.

KT (CEO Kim Young-seop) recorded consolidated sales of KRW 26.4312 trillion and separate sales of KRW 18.5797 trillion under Korean International Financial Reporting Standards (K-IFRS), up 0.2% and 1.1% year-on-year, respectively. In particular, separate service sales exceeded KRW 16 trillion for the first time due to stable growth in B2C and B2B businesses and transformation into an AICT company.

Operating profit was KRW 809.5 billion on a consolidated basis and KRW 346.5 billion on a separate basis, reflecting one-time personnel expenses such as personnel restructuring implemented in the fourth quarter. Excluding one-time personnel expenses, consolidated operating profit was KRW 1.8118 trillion and separate operating profit was KRW 1.3328 trillion, up 9.8% and 12.4% year-on-year, respectively, showing improved profitability year-on-year.

◆ Balanced growth of B2C and B2B businesses and sales growth of AX platforms such as AICC stand out

The wireless business achieved a 1.3% year-on-year sales growth by expanding customer choices through the launch of various rate plans such as the online no-contract rate plan 'Yogo'. The 5G subscriber ratio was 77.8% of all handset subscribers. Wireless service revenue increased by 1.7% year-on-year due to the increase in the number of 5G subscribers and the steady growth of the roaming business and MNVO business.

The wireline business maintained sales at a similar level to last year. High-speed Internet sales increased by 1.1% year-on-year due to an increase in gigabit Internet subscribers. Wireline phone sales decreased by 7.3% year-on-year due to a decrease in household demand.

The media business achieved a 1.2% year-on-year sales growth due to the increase in total IPTV subscribers and high ARPU (average revenue per user) subscribers. KT will focus the group's media business capabilities through the newly established media division at the end of 2024 and promote innovation in the media business based on AX (AI transformation).

The corporate service business grew 2.9% year-on-year despite the improvement of low-profit business structure. The corporate internet and data business maintained stable growth. In particular, the performance of the AX platform business, including AICC and smart mobility, stood out.

In 2025, we plan to pursue structural improvement of low-profit businesses and concretize business performance based on a strategic partnership with Microsoft (MS). We plan to focus on strategic customers by utilizing the Korean AI model and Secure Public Cloud to be released within the first half of the year, and to promote profit generation in the AI ​​and Cloud sectors by strengthening professional consulting functions.

◆ Notable growth in KT Group's core portfolio businesses including finance, real estate, cloud, and IDC

KT Group has a diverse business portfolio including finance, real estate, digital transformation (DX), and content. BC Card in the financial sector achieved stable growth centered on collateral assets through rebalancing the financial business portfolio, and its operating profit increased significantly compared to the previous year.

K Bank continues to grow with a steady increase in customers and deposits. K Bank’s customers at the end of 2024 will be 12.74 million, an increase of 3.21 million in the past year alone. The deposit balance will be 28.6 trillion won, and the loan balance will be 16.3 trillion won, an increase of 49.8% and 17.0%, respectively, compared to the previous year.

KT Estate saw a 1.7% increase in sales year-on-year due to hotel-centered rental sales growth. In November 2024, it began a new development project by completing the sale announcement of a joint housing complex with approximately 860 households on some of the Daejeon Human Resources Development Center sites.

kt cloud's sales increased by 15.5% year-on-year due to growth in its main business divisions and expansion of its customer base. The cloud business is growing through increased CDN (Content Delivery Network) traffic and strengthened leadership in the public market. The DC business is continuing its growth through increased colocation service orders for global customers and expansion of the DBO (Design·Build·Operate) business. In the future, kt cloud plans to continue its growth through new market development and technology internalization.

KT's content subsidiary saw a decrease in sales compared to the previous year due to a shrinking market, but its self-produced content achieved positive results. 'Crash', 'Your Honor', and 'To My Harry', produced by Studio Genie and aired on SkylifeTV (ENA channel) and Genie TV, were consecutively popular, and SkylifeTV's original entertainment show 'I'm SOLO' also showed potential for future growth with its consistent popularity.

◆ Expanding shareholder returns through efforts to improve profitability··· Annual dividend per share of 2,000 won in 2024

KT decided on a dividend of 500 won per share for the fourth quarter of 2024. Starting in 2024, quarterly dividends were introduced and dividends of 500 won per share were paid in each of the first to third quarters. KT increased its annual dividend per share from 1,960 won in 2023 to 2,000 won in 2024 due to its efforts to improve profitability. The dividend settlement date is February 28, and the dividend will be paid after final approval at the regular shareholders' meeting in March.

◆ Continued implementation of corporate value enhancement plan··· Announcement of 250 billion won in treasury stock purchase and burn by 2025

KT announced its corporate value enhancement plan (Value Up Program) in November last year, setting a consolidated return on equity (ROE) target of 9-10% and announcing a plan to purchase and burn a cumulative KRW 1 trillion worth of treasury stocks by 2028. Accordingly, the company plans to actively implement its corporate value enhancement plan by purchasing and burning approximately KRW 250 billion worth of treasury stocks in 2025.

KT will push ahead with its structural transformation into an AICT company through a strategic partnership with Microsoft this year. It will also streamline low-margin and marginal businesses to enhance profitability.

KT CFO Jang Min said, “In 2024, KT Group was able to achieve the highest sales by transforming into an AICT company and strengthening the competitiveness of its core business,” and “In 2025, we will achieve sustainable growth based on strengthening AX capabilities and innovation, and faithfully execute the plan to increase corporate value so that KT’s corporate value can take a leap forward.”