Corporate Logo(source: corp.kt.com)
BNK Securities has lowered its target price for KT(030200) to 68,000 won from 70,000 won.
Kim Jang-won, an analyst at BNK Securities, said, “The company’s expanded capacity for shareholder returns, including additional share buybacks, is encouraging. However, the new program is set to be implemented next year, and the ongoing 250 billion won buyback plan has nearly been exhausted. In the near term, the stock price is expected to be more sensitive to uncertainties such as the potential repeal of the Mobile Device Distribution Act.”
In the second quarter, KT’s wireless subscribers grew 4% from the previous quarter, while internet and IPTV subscriptions increased 0.9% and 0.6%, respectively, contributing to strong earnings. On a separate basis, excluding handset sales, service revenue rose by more than 2% year-on-year and quarter-on-quarter, with subscriber growth serving as the main driver.
Revenue came in slightly below estimates, but the shortfall in operating profit was more pronounced. Service costs, excluding handset purchase expenses, declined only 0.5% year-on-year, while service procurement and selling expenses saw notable increases. Consolidated operating profit exceeded 1 trillion won, surpassing expectations due to the recognition of profits from real estate development projects.
According to BNK Securities, the second quarter was marked by exceptional circumstances. KT benefited from a larger-than-usual increase in wireless subscribers after a competitor suffered subscriber losses from a USIM data breach, while gains from real estate development further boosted results. Last year, wage negotiations were also concluded early.
Kim said, “The potential repeal of the Mobile Device Distribution Act will be the most closely watched issue in the third quarter. Along with competitors’ determination to recover market share, it could become a trigger for instability.”
He added, “However, the likelihood of a price war is low, making subscriber shifts similar to those in the second quarter unlikely. With wage negotiations scheduled for the second half of the year, cost pressures are set to increase, making operational efficiency a key priority.”
*[KOSPI] KT(030200) is Korea's leading ICT company and operates in industries such as telecommunications, cloud, AI, content, and finance. The market capitalization is 13.861 trillion won (as of August 12, 2025, closing price).
Corporate Logo(source: corp.kt.com)
BNK Securities has lowered its target price for KT(030200) to 68,000 won from 70,000 won.
Kim Jang-won, an analyst at BNK Securities, said, “The company’s expanded capacity for shareholder returns, including additional share buybacks, is encouraging. However, the new program is set to be implemented next year, and the ongoing 250 billion won buyback plan has nearly been exhausted. In the near term, the stock price is expected to be more sensitive to uncertainties such as the potential repeal of the Mobile Device Distribution Act.”
In the second quarter, KT’s wireless subscribers grew 4% from the previous quarter, while internet and IPTV subscriptions increased 0.9% and 0.6%, respectively, contributing to strong earnings. On a separate basis, excluding handset sales, service revenue rose by more than 2% year-on-year and quarter-on-quarter, with subscriber growth serving as the main driver.
Revenue came in slightly below estimates, but the shortfall in operating profit was more pronounced. Service costs, excluding handset purchase expenses, declined only 0.5% year-on-year, while service procurement and selling expenses saw notable increases. Consolidated operating profit exceeded 1 trillion won, surpassing expectations due to the recognition of profits from real estate development projects.
According to BNK Securities, the second quarter was marked by exceptional circumstances. KT benefited from a larger-than-usual increase in wireless subscribers after a competitor suffered subscriber losses from a USIM data breach, while gains from real estate development further boosted results. Last year, wage negotiations were also concluded early.
Kim said, “The potential repeal of the Mobile Device Distribution Act will be the most closely watched issue in the third quarter. Along with competitors’ determination to recover market share, it could become a trigger for instability.”
He added, “However, the likelihood of a price war is low, making subscriber shifts similar to those in the second quarter unlikely. With wage negotiations scheduled for the second half of the year, cost pressures are set to increase, making operational efficiency a key priority.”
*[KOSPI] KT(030200) is Korea's leading ICT company and operates in industries such as telecommunications, cloud, AI, content, and finance. The market capitalization is 13.861 trillion won (as of August 12, 2025, closing price).