KT Skylife Surpasses 1 Trillion KRW in Annual Revenue for the First Time Last Year

[Asia Economy Reporter Oh Su-yeon] KT Skylife announced that it recorded sales (operating revenue) of 1.0342 trillion KRW and an operating profit of 63.2 billion KRW in 2022.

Annual operating revenue increased by 35.5% compared to the previous year, surpassing 1 trillion KRW for the first time since its establishment. Operating profit decreased by 13.5%.

In the fourth quarter, operating revenue rose 11.6% year-on-year to 271.1 billion KRW, while operating profit fell 99.7% to 4.7 billion KRW.

The company explained that although the increase in mobile and internet subscribers drove the rise in operating revenue, operating profit declined due to increased amortization expenses from content investments. EBITDA, an indicator of cash generation capability, increased by 15.2% year-on-year to 185.9 billion KRW annually.

Operating revenue from the platform segment of Skylife and HCN reached 945.5 billion KRW annually, up 32.8% from the previous year. The acquisition of HCN increased service revenue and platform revenue from TV subscribers, and communication service revenue grew rapidly due to the increase in mobile and internet subscribers.

Operating revenue from the content segment of Skylife TV was 88.8 billion KRW annually, rising 73.6% compared to the previous year. Aggressive growth strategies such as full-scale original content investment and the merger with Media Genie were effective. Advertising revenue also doubled year-on-year to 68.4 billion KRW (separate basis), supported by increased channel viewership ratings.

Total subscribers reached 5.89 million, achieving a net increase of 110,000 annually. This is more than 14 times the net increase of the previous year. Subscribers to TPS products such as TV, mobile, and internet all increased compared to the previous year. Net subscriber growth for Skylife satellite broadcasting (skyTV) and HCN cable TV doubled (31,000 in 2021 → 62,000 in 2022), and net subscriber growth for mobile and internet increased by 1.3 times (206,000 in 2021 → 271,000 in 2022).

Last year was a year of intensified content investment, including airing five Wednesday-Thursday dramas such as and producing more than 11 original variety shows. As a result, the annual cumulative viewership ranking of ENA and ENA Play channels rose by an average of 7 places year-on-year (individual 2049 channel cumulative viewership ranking), significantly enhancing the ENA brand value. This year, in addition to currently airing and , original content such as PD Kim Tae-ho’s , starring Hyeri, Miyeon, Rijeong, and Choi Yena, and the representative military unit survival show are being prepared.

On the 6th, Skylife announced a cash dividend of 350 KRW per share, corresponding to a dividend yield of 4.08%. Separately, it also announced the acquisition and cancellation of treasury shares worth 5 KRW per share (totaling 2.4 billion KRW), revealing a shareholder return plan totaling approximately 400 KRW per share.

Yang Chun-sik, Head of Management Services at KT Skylife, said, “It is meaningful that operating revenue exceeded 1 trillion KRW on a consolidated annual basis for the first time due to continuous quarterly increases in operating revenue. We will continue to expand the net increase of TPS product subscribers, increase investment in original content through Skylife TV, and find various ways to enhance shareholder value while maintaining steady communication.”