KT Corp, a South Korean telecommunications company, reported its earnings for the second quarter of 2024, highlighting a flat revenue growth with NT$6,546.4 billion (approximately $5.02 billion USD) compared to the same period last year. The company faced a significant decline in operating profit, down by 14.3% year-over-year, primarily due to increased labor costs following an early settlement of annual wage negotiations.
The telecommunications giant’s wireless service segment saw a modest revenue increase of 2.7% year-over-year, driven by a growing 5G subscriber base that has exceeded 10 million users. Despite this growth, the overall profitability was affected by the company’s decision to restructure low-profit businesses in its B2B service division, which experienced a revenue decline of 1%.
KT Corp is actively pursuing structural changes aimed at enhancing profitability and expanding its AI and Cloud services. The recent strategic partnership with Microsoft is a key part of this transformation, focusing on collaboration in AI, Cloud, and IT sectors.
The company also announced shareholder-friendly initiatives, including the cancellation of 2% of its outstanding treasury shares and a dividend payout of 500 KRW per share, reflecting its ongoing commitment to enhancing shareholder value.
