KT Alpha, 3Q Operating Profit of 2.18 Billion KRW... Return to Profitability (Comprehensive)

[Asia Economy Reporter Lim Chun-han] KT Alpha announced on the 9th that its consolidated operating profit for this year was tentatively estimated at 2.18 billion KRW, turning to a profit compared to the same period last year. Sales amounted to 112.513 billion KRW, a 1.2% decrease compared to the same period last year, and net profit for the period turned to a profit at 1.347 billion KRW.

Commerce business sales recorded 77.6 billion KRW, a 0.3% increase compared to the same period last year. KT Alpha Shopping is actively securing new growth engines through discovering business cooperation models based on strategic development of the fashion category and combining core competencies. On the 20th of last month, it successfully launched the premium fashion private brand (PB) ‘Le Toit’ and recorded sales of about 500 million KRW in its first broadcast.

Mobile gift commerce business sales reached 23 billion KRW, a 0.8% increase compared to the same period last year. This is due to the continuous growth of the mobile gift certificate B2B platform, Giftishow Biz. The mobile gift commerce business plans to continue growth based on securing new media for mobile gift certificates and strengthening marketing, focusing on preparing growth engines through discovering new markets.

Content business sales recorded 11.9 billion KRW, a 12.7% decrease compared to the same period last year. This was due to delays in the release of new films caused by the impact of COVID-19. The content business plans to secure profitability by expanding distribution rights to major OTT platforms such as Netflix, Coupang Play, and Apple TV, and by expanding coverage of the real-time movie channel (Cinema Heaven).

The ICT business was classified as a discontinued operation due to division and equity sale. The ICT business was physically split and a new corporation was established (corporate name: Alpha DX Solution Co., Ltd.) on September 1, and was sold to the affiliate KT DS Co., Ltd. on the 4th of last month.