KT Alpha Reports Operating Profit of 1.649 Billion KRW in Q1, Down 61.2% YoY (Comprehensive)

Decrease in Contactless Shopping Demand Leads to Sales Decline

KT Alpha announced on the 10th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 1.649 billion KRW, a 61.2% decrease compared to the same period last year. Sales amounted to 107.385 billion KRW, down 8.6% from the same period last year, and net profit was 5.185 billion KRW, a 23.9% decrease.

Commerce business sales recorded 71.4 billion KRW, down 11.6% year-on-year. This decline is due to a decrease in non-face-to-face shopping following the endemic (periodic outbreak of infectious diseases). KT Alpha Shopping plans to expand its profit base by focusing on securing independent product competitiveness through developing its own fashion brand and promoting licensing business of famous overseas fashion brands.

Mobile gift commerce business sales recorded 23.2 billion KRW, down 6.1% year-on-year. While sales from mobile coupon business targeting general customers decreased, the business sales targeting corporate clients maintained the number one market share.

Content media business sales increased by 6.4% year-on-year to 12.7 billion KRW. This was due to the expansion of movie rights distribution, with increased advertising revenue from the movie channel Cinema Cheonguk and overseas sales performance of global rights such as the movie Mungmoongi having an impact.