KT Confirms AX Business Gains Amid Telecom Recovery as Q3 Operating Profit Falls 6.1% (Comprehensive)

Cumulative AX orders in the third quarter rose more than 20% year over year
Plan to bring six AI data centers online; capacity to exceed 1 GW by 2031

KT confirmed the growth potential of its AI Transformation (AX) business, driven by AI infrastructure and other resources, in its third-quarter results, laying the groundwork for the success of the "AX Platform Company" strategy announced by CEO Park Yoonyoung after taking office.

KT disclosed on November 10 that its consolidated operating profit for the third quarter of this year was tentatively tallied at KRW 505.3 billion, down 6.1% from the same period a year earlier. Revenue for the same period was KRW 6.9975 trillion, down 1.8%. The decline in operating profit was due to a base effect from one-off gains on property sales in the third quarter of last year. Excluding its subsidiaries, KT recorded standalone revenue of KRW 4.9878 trillion and operating profit of KRW 299.3 billion.

KT CEO Park Yunyoung is presenting the company's AX Platform strategy at the Eastpole Pullman Hotel in Gwangjin-gu, Seoul, on July 6, 2026. Photo by Yoon Dongju

By business segment, wireless service revenue fell 3.9% year over year, affected by a customer appreciation program that ran through July. However, the business has been recovering since July, as flagship smartphones were launched and the number of premium-plan subscribers increased. At the end of the third quarter, 5G subscribers accounted for 83.5% of all mobile phone subscribers. In the fixed-line business, the number of high-speed internet and IPTV subscribers rose 1.4% and 0.5%, respectively, from a year earlier. The share of high-speed internet subscribers using gigabit service increased to 70.3%.

Enterprise services revenue declined 0.7% due to a base effect following the completion of large-scale construction projects last year, but the enterprise internet and data business and the AX business posted strong growth. Cumulative orders in the third quarter rose by more than 20% year over year. With large-scale projects, including AIDC and AI computing center network construction, continuing to be secured, KT expects revenue conversion from the projects it has won to gain momentum starting in the fourth quarter.

KT has established a foundation for AX business growth by expanding the supply of AI infrastructure, including AIDCs. It plans to expand AIDC capacity to more than 1 GW by 2031 and bring six new data centers online in stages: the Bucheon 1 and 2 centers in 2027, Gaebong, Gunsan and Yongin in 2028, and Ansan in 2029.

KT will secure more than 90 Tbps of additional submarine cable capacity and diversify its existing landing station hubs, centered in Busan, to Jeju and the southwestern and southeastern regions. It plans to build "AI Edge" facilities that run AI close to users by leveraging more than 3,500 telephone exchanges nationwide, and connect them to AI data centers and global networks to strengthen its AI infrastructure competitiveness. KT Token Factory, launched on October 30, offers functions such as AI model selection and cost management on a single platform.

Among its subsidiaries, KT Cloud continued to post steady revenue growth in the third quarter, supported by key businesses such as data centers and cloud services. KT estate's third-quarter revenue rose 39.1%, driven by its property sales business in Dunsan, Daejeon, and growth in its hotel and rental businesses. Revenue at its content subsidiaries increased 12.1% in the third quarter, driven by growth at KT Studio Genie and Millie's Library.

After purchasing KRW 250 billion worth of its own shares in September, KT decided on October 13 to pay a cash dividend of KRW 600 per share for the third quarter. The dividend is scheduled to be paid on November 12.

"The third quarter was a period in which we developed our AX growth strategy and sustained growth at our key group companies despite changes in the business environment at home and abroad," said Min Hyebyung, KT's chief financial officer and executive vice president. "Going forward, we will do our utmost to enhance corporate value by restoring profitability in our core telecommunications business and accelerating growth in B2B and AX."

This content was produced with the assistance of AI translation services.