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Dec 31, 2024
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KT Q4 2024 Earnings Report
KT reported a net loss in Q4 2024 due to a one-time spike in labor costs despite stable service revenue.
Key Takeaways
KT posted a consolidated net loss of KRW 736.6B in Q4 2024, primarily due to a sharp increase in labor costs tied to restructuring. While service revenue held steady, operating income turned negative, resulting in a -KRW 655.1B operating loss.
Revenue for Q4 2024 was KRW 6,575.6B, down 1.7% YoY.
Operating income swung to a loss of KRW 655.1B due to one-off labor costs.
Net income came in at -KRW 736.6B.
Labor cost nearly doubled YoY to KRW 2,189.6B in the quarter.
Forward Guidance
KT expects over KRW 28 trillion in consolidated revenue in 2025, driven by B2B growth, AI transformation, and real estate monetization.
Positive Outlook
- Targeting consolidated revenue > KRW 28T in 2025.
- Expansion of AI/IT revenue through AX platforms and consulting.
- B2B AX growth aided by strategic partnership with Microsoft.
- Ongoing buyback and cancellation plan of KRW 1T until 2028.
- Focus on core businesses and divestment of non-core assets.
Challenges Ahead
- High labor cost pressures impacted Q4 earnings significantly.
- No guidance on profitability improvement in near term.
- Decline in device sales and home telephony revenue observed.
- Continued operating losses in certain subsidiaries.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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