KT shook off most of the one-off labor costs from a large-scale restructuring and returned to the black in the fourth quarter last year. Results rebounded as the base effect from a loss a year earlier overlapped with a reorganization focused on profitability.
KT said in a filing on the 10th that it posted consolidation basis fourth-quarter 2025 revenue of 6.845 trillion won and operating profit of 227.3 billion won. Revenue rose 4.1% from a year earlier, and operating profit swung to a profit from a 655.1 billion won loss a year earlier.
The key backdrop for the improvement was the base effect from restructuring expenses recognized in advance in 2024. At the time, as it reorganized subsidiaries and carried out a special voluntary retirement program, KT booked about 1 trillion won in one-off labor costs. After establishing KT Netcore and KT P&M and reallocating head office staff, the company implemented a workforce adjustment totaling about 4,400 people, including more than 2,800 under the special voluntary retirement plan, and said the resulting reduction in fixed costs has since been fully reflected in earnings.
Full-year results also showed a clear improving trend. On a consolidation basis, KT recorded 28.2442 trillion won in revenue and 2.4691 trillion won in operating profit in 2025. Annual revenue rose 6.9% from a year earlier, and operating profit increased 4%. However, in the fourth quarter, some one-off expenses, including SIM purchase costs incurred while responding to a hacking breach, were reflected and limited the margin improvement.
By business, both business-to-consumer (B2C) and business-to-business (B2B) grew steadily. In wireless, service revenue increased 3.3% from a year earlier on the back of expanded mid- to low-priced plans and a larger subscriber base. As of the end of 2025, 5G subscribers accounted for 81.8% of all handset subscribers.
In wireline, revenue rose 0.8% on the growth of high-speed internet and media. Corporate services revenue increased 1.3% as stable growth in CT and rising AI/IT demand offset the impact of rationalizing low-margin businesses.
Expansion of the AX (AI transformation) business is also gaining speed. KT launched the in-house technology-based model "Mideum K," the Korea-tailored AI language model "SOTA K" developed in cooperation with Microsoft, and a security-focused cloud SPC. It is also working with Palantir to expand data and AI business opportunities centered on the financial sector.
In the group portfolio, cloud and data centers and real estate underpinned results. KT Cloud's revenue rose 27.4% from a year earlier on increased demand for AI, cloud, and data centers. Orders in the public sector also grew. In November last year, it opened the Gasan AI data center, the first in Korea to apply a liquid cooling system.
KT Estate saw revenue and operating profit rise together on the back of complex development and leasing expansion, better hotel performance, and progress in the Daejeon training center development project. The completion of complex development on the Gangbuk headquarters site also contributed to the improvement.
Content affiliates maintained revenue at the prior-year level despite a slowdown in the advertising market and the impact of selling some subsidiaries. KT Studio Genie, KT Nasmedia, and kt Millie Seojae showed resilience, and kt Millie Seojae grew revenue on increased subscribers.
Kbank secured 2.79 million new customers in 2025, bringing the total to 15.53 million. As of the end of December, deposits stood at 28.4 trillion won, flat from a year earlier, while loans were 18.4 trillion won, up 13%. On Jan. 1, it passed a preliminary listing review and is proceeding with the listing process.
KT is also overhauling its companywide security regime in the wake of the breach. Centered on a CEO-reporting information security innovation task force, it is refining governance and strengthening the CISO framework to integrate and advance dispersed security functions. It plans to invest about 1 trillion won over the next five years to expand zero trust, advance integrated security control, and conduct continuous inspections based on external experts and international standards.
Shareholder returns were also strengthened. KT decided on a year-end dividends cash payout of 600 won per share for 2025. The annual payout was 2,400 won per share, up 20% from a year earlier. The record date for the settlement of account dividend is Feb. 25, and the payout will be made after approval at the regular shareholders meeting in March. Having presented a plan to buy back and cancel a total of 1 trillion won in treasury shares from 2025 to 2028, KT also plans to buy back and cancel 250 billion won in 2026.
Jang Min, KT CFO, said, "We apologize for causing concern to customers, shareholders, and investors due to the 2025 breach," and added, "Based on solid fundamentals, we carried out our shareholder return policy and value-up plan without a hitch." Jang said, "Building on our core telecom business and AX growth drivers, we will continue to pursue growth and enhance corporate value in 2026."