KT changes
Pick any two versions below to diff them.
- Price
- $17.28 → $18.46(+6.8%)
- Discount category
- Below intrinsic value → Close to intrinsic value
- Next earnings
- Nov 12, 2026 → Nov 10, 2026
- Next earnings is estimate
- Yes → No
- Thesis
- The market prices KT as a slow-growth Korean telecom company with low returns on equity. A security incident with illegal femtocells, which the government confirmed in December 2025, led KT to waive early termination fees, and more than 233,000 subscribers left. A customer appreciation program from February to July 2026 then lowered wireless revenue. KT also plans large spending: KRW 4 trillion on cybersecurity and IT and KRW 8 trillion on network over three years, and KRW 6 trillion on AI data centers and submarine cables over five years. For the gap to close, three things must be true. Wireless service revenue must grow again after the end of the appreciation program. The consolidated operating margin must rise toward the value-up target of 9% or more by 2028, with a consolidated ROE of 9% to 10%. KT must deliver the planned returns: 50% of adjusted standalone net income each year from 2026 to 2028, plus KRW 750 billion of buybacks and cancellations, and sales of non-core assets. The Q3 2026 removed: report, expected in added: report on November added: 10, 2026, gives the next test, and the full-year 2026 results in February 2027 give a second test. If these checks pass, the gap can close slowly through 2028. The main reasons it may not close are new security costs or fines and investments that earn low returns.
- Checkpoints
- Nov removed: 12, 2026 (estimate): added: 10, 2026: Q3 2026 results: wireless recovery. Pending. Watch: Wireless service revenue that stops falling after the end of the appreciation program and a higher operating margin than in Q3 2025 pass; another fall in wireless revenue or new security costs fail. 2028 (estimate): 2028 value-up targets. Pending. Watch: A consolidated ROE of 9% to 10% and an operating profit margin of 9% or more in 2028 pass; lower figures fail.
- Recent events
- added: Nov 4, 2026: KT said that it will release its Q3 2026 results and hold its earnings call on November 10, 2026. Oct 23, 2026: KT reported that the Government of Rwanda and three related parties filed a counterclaim of about KRW 512.4 billion against KT in an arbitration at the Permanent Court of Arbitration. KT started the arbitration to collect a put option price of about $152 million under a shareholders' agreement. KT said that it will dispute the counterclaim. Oct 13, 2026: KT declared a Q3 2026 dividend of KRW 600 per share, with a record date of October 28, 2026 and payment on November 12, 2026. Sep 9, 2026: KT completed its KRW 250 billion treasury share trust. It bought 4,480,551 shares from April to August 2026. Aug 12, 2026: KT reported Q2 2026 results. Consolidated revenue fell 10.1% to KRW 6,679.9 billion and operating profit fell 36.1% to KRW 648.3 billion, because a real estate project lifted Q2 2025. Wireless service revenue fell 1.8% because of the customer appreciation program and subscriber losses during the fee waiver. KT also published its 2026 value-up plan, with a consolidated ROE target of 9% to 10% and an operating profit margin of 9% or more by 2028, and KRW 750 billion of buybacks and cancellations from 2026 to 2028. Jul 6, 2026: KT presented a mid-term growth plan. It plans to add 1 GW of AI data center capacity over five years. It plans to invest KRW 4 trillion in cybersecurity and IT and KRW 8 trillion in network over three years, and KRW 6 trillion in AI data centers and submarine cables over five years. May 12, 2026: KT reported Q1 2026 results, with consolidated operating profit of KRW 482.7 billion. It also set its shareholder return policy for FY2026 to FY2028: it will return 50% of adjusted standalone net income through cash dividends and share buybacks and cancellations. Mar 31, 2026: Yoon-Young Park, a former KT President, became Chief Executive Officer. He replaced Young-Shub Kim. Dec 31, 2025: After a government investigation found that weak femtocell management let attackers reach subscriber data, KT waived early termination fees from December 31, 2025 to January 13, 2026. More than 233,000 subscribers ended their contracts in that period. The investigation found unauthorized micropayments that affected 368 customers and a leak of data of about 22,227 subscribers.