KT Achieves First Sales of 25 Trillion Won Since 1998 Listing... Operating Profit of 1.6 Trillion Won

Annual Performance Sales Consolidated 25.65 Trillion KRW,
Strong Performance Driven by Wired and Wireless, High Growth of DIGICO Business

[Asia Economy Reporter Lim Hye-seon] KT has entered the era of 25 trillion KRW in sales for the first time since its listing in 1998.

KT announced on the 9th that its consolidated sales based on Korean International Financial Reporting Standards (K-IFRS) for last year reached 25.65 trillion KRW, a 3.0% increase compared to the previous year. Separate sales were recorded at 18.2893 trillion KRW.

KT accelerated its transformation into a digital platform company (DIGICO) and strengthened profitability based on growth in DIGICO and business-to-business (B2B) operations. Thanks to these efforts, last year's consolidated and separate operating profits were 1.6901 trillion KRW and 1.1681 trillion KRW, respectively.

Separate service sales increased by 1.7% year-on-year to 15.7672 trillion KRW, and including the 'kt cloud' launched last year, sales rose 3.4% year-on-year to 16.031 trillion KRW, demonstrating growth potential. This is more than three times the average three-year service sales growth rate before the DIGICO management strategy was fully implemented.

The B2B platform business expanded its playground and extended its existing business areas, continuing growth in core businesses such as AI Contact Center (AICC). The B2B business responded to corporate digital transformation (DX) demand triggered by COVID-19, with cumulative orders this year increasing by 13.2% compared to the previous year. The AICC business saw an 88.9% increase in sales year-on-year, driven by successful large-scale projects mainly in the financial sector and the co-growth of the smart cloud contact center 'Aisen Cloud' for corporate customers.

Among Telco B2B businesses targeting corporate customers, the corporate internet business saw sales rise 7.7% year-on-year due to increased traffic from large domestic and international CP companies. Corporate calls increased 7.7% year-on-year, supported by growth centered on average revenue per user (ARPU) for corporate internet phones and the expansion of the MVNO (Mobile Virtual Network Operator) market.

In the business-to-consumer (B2C) platform sector, the IPTV business successfully rebranded 'Genie TV' in October last year. Genie TV plans to open a new 'media portal' era by launching Disney+ in its online video service (OTT) exclusive section in January this year, following Netflix and YouTube. IPTV business sales increased 6.5% year-on-year, supported by efforts to lower barriers to media platforms and meet diverse customer content demands.

The Telco B2C wireless and wired business maintained steady growth centered on premium subscribers, with 8.45 million 5G subscribers accounting for 62% of total handset subscribers. Additionally, roaming business sales recovered as overseas travelers increased with the easing of COVID-19 spread. Home wired phone sales declined 4.4% year-on-year due to a decrease in household subscribers. Ultra-high-speed internet sales increased 3.3% year-on-year as the share of giga internet sales rose amid continuous demand for high-quality internet services.

Last year marked the full-scale growth of KT Group's media content business. Content subsidiaries continued strong growth in content, advertising, and commerce sectors, achieving a 25.4% increase in sales year-on-year. In particular, kt Studio Genie recorded separate sales exceeding 100 billion KRW and an operating profit of 9.6 billion KRW in its second year since establishment.

KT Group is strengthening AI-related capabilities and services and building an AI ecosystem. In the first half of this year, it plans to commercialize the super-large AI 'Mideum' and expand it to a 200 billion parameter-scale model within the year. KT Alpha, kt CS, and kt IS are expanding their businesses centered on AICC and focusing on advancing business models. PlayD operates AI chatbot services for advertisers, concentrating on marketing for small and medium-sized advertisers, while Genie Music acquired AI startup ‘Juice’ to expand AI applications in AI creation and music service areas. kt cloud strengthened its leadership in the public cloud transition market in 2022 and enhanced data center profitability, maintaining double-digit growth.

The financial business also continued to grow. BC Card's sales increased 8.8% year-on-year due to increased credit card purchase amounts, expansion of its own card issuance business, and performance reflection from the inclusion of subsidiary Smartro. K-Bank has maintained operating profits for seven consecutive quarters since Q2 2021. As of the end of last year, K-Bank had 8.49 million subscribers, an increase of 1.32 million from the previous year. Its deposit balance was 14.6 trillion KRW, and loan balance was 10.8 trillion KRW, up 29.2% and 51.9% year-on-year, respectively.