South Korea’s largest telecoms operator KT Corp. reported first-quarter earnings that modestly exceeded market expectations, driven by resilient demand in broadband and enterprise services.
The company posted adjusted earnings per share of 1,200 Korean won ($0.89), up 1.7% year-on-year and $0.01 above the consensus estimate compiled by Refinitiv. Revenue totaled 4.1 trillion won, a 3.2% increase from the prior year and ahead of the 4.0 trillion won forecast.
KT attributed the outperformance to sustained growth in fixed-line broadband subscriptions and higher enterprise IT service revenues. Mobile subscriber additions also contributed, though at a slower pace than in recent quarters.
Operating profit rose 5.1% to 680 billion won, supported by cost discipline and improved margins in its IT services segment. The company maintained its full-year guidance, reaffirming revenue growth of 3-5% and operating profit expansion of 4-6% for 2024.
Shares of KT were little changed in after-hours trading, reflecting the in-line outlook despite the beat on earnings and revenue. Analysts noted that while the results were positive, macroeconomic headwinds in South Korea’s consumer spending could limit further upside in the near term.
