KT Skylife Reports Operating Profit of 67.1 Billion KRW Last Year, Up 3.2% Year-on-Year (Comprehensive)

2020 Annual Performance Announcement

[Asia Economy Reporter Cha Min-young] KT Skylife recorded an operating profit of 67.1 billion KRW last year, marking a 3.2% improvement compared to the previous year. This year, the company plans to strengthen its integrated wired and wireless services by introducing various bundled services.

KT Skylife announced on the 3rd that its consolidated sales for the fourth quarter increased by 5.4% year-on-year to 176.5 billion KRW. Operating profit for the same period sharply declined by 46.5% to 9.9 billion KRW, and net profit also decreased by 47.2% to 7.1 billion KRW.

For the full year, the company posted sales of 660.4 billion KRW, operating profit of 67.1 billion KRW, and net profit of 57.7 billion KRW. Sales increased by 0.3% compared to the previous year, while operating profit and net profit rose by 3.2% and 14.6%, respectively.

Fourth-quarter sales increased by 8.2 billion KRW (5.2%) year-on-year due to growth in internet subscribers but slightly decreased compared to the previous quarter due to a decline in subscribers to ‘Olleh TV Skylife (OTS),’ a satellite broadcasting service. Operating profit fell by 55% and 30% compared to the same period last year and the previous quarter, respectively, reflecting retroactive costs related to program usage fee contracts.

As of the fourth quarter, total broadcasting subscribers numbered 4.04 million, down 60,000 from the previous quarter. However, with an increase in new internet subscribers and continued growth in Double Play Service (DPS) bundles combining internet and broadcasting, Skylife TV, a satellite broadcasting-only product, saw a net increase in subscribers for the first time in eight quarters since Q4 2018. The company expects subscriber growth to continue, supported by the competitiveness of Triple Play Service (TPS) bundles, which add Skylife Mobile to DPS.

Internet subscribers exceeded 10,000 new monthly sign-ups in the fourth quarter, driven by the ‘30% discount home bundle’ promotion. As of the end of Q4, cumulative internet subscribers reached 195,000, an 82% increase (88,000) year-on-year and a 26,000 increase quarter-on-quarter. Notably, the DPS bundling rate, combining internet and broadcasting subscriptions, reached 94.9%, maintaining a bundling rate above 90%. Growth in TPS bundling rates, which include Skylife Mobile, is also anticipated.

Yang Chun-sik, Head of Management Planning at KT Skylife, stated, “As a TPS provider, including Skylife Mobile, we continue efforts to offer high-quality integrated wired and wireless services at reasonable prices through generous promotions and the launch of the Gold plan. Following market trends, we will focus on strengthening bundled services and expanding non-face-to-face sales channels through direct channels to reduce marketing costs and increase subscribers.”