KT Skylife Reports 19.3 Billion KRW Operating Profit in 2Q, Down 17.2% YoY

KT Skylife announced on the 4th that it recorded operating revenue (sales) of 261.3 billion KRW and operating profit of 19.3 billion KRW in the second quarter.

Operating revenue increased by 2.8% compared to the same period last year, while operating profit decreased by 17.2%. The company stated that EBITDA (earnings before interest, taxes, depreciation, and amortization) was 58.4 billion KRW, securing the highest quarterly cash generation since its establishment.

On a separate basis, operating revenue was 181 billion KRW and operating profit was 18.8 billion KRW, increasing by 3.5% and 11.2% respectively compared to the same period last year. EBITDA continued its upward trend, reaching 32.2 billion KRW, which is 18% of operating revenue.

The platform segment operating revenue of Skylife and HCN was 238.6 billion KRW, up 2.2% year-on-year. The increase in mobile and internet subscribers led to the highest quarterly telecommunications service sales, and the stable transmission agency business drove revenue growth. The total number of subscribers reached 5.87 million, an increase of 0.5% (20,000 people) compared to the same period last year.

Skylife TV’s content segment operating revenue was 22.6 billion KRW, up 9.7% (2 billion KRW) year-on-year. The merger with Media Genie increased channel subscription fees, and revenue from video content selling original entertainment intellectual property (IP) was reflected. Despite a contraction in the broadcasting advertising market due to the economic downturn, which caused major broadcasters’ advertising revenue to decline, Skylife TV’s advertising revenue rose by 2.3% (400 million KRW) year-on-year to 15.7 billion KRW.

Subscribers for major products such as skyTV (satellite broadcasting), internet, and mobile continued to increase, recording a net increase of 33,000 skyTPS (skyTV, internet, mobile) subscribers. Among new internet subscribers through the HCN channel, the sales ratio of sky internet remained above 50%, and 95% were bundled with cable TV.

Continuous content investment also enhanced the value of the ENA channel. By consistently airing dramas such as "Haengbok Battle" and "The House with a Yard," the ENA channel’s viewership rating rose significantly, climbing 12 ranks compared to June of the previous year. The drama "Namnam" is currently performing well, with the recently aired 6th episode achieving a 3.62% nationwide household rating (Nielsen Korea), marking the highest rating since "Extraordinary Attorney Woo." Highly anticipated shows for the second half of the year, such as "New Recruit 2" and "Steel Troops 3," are also scheduled to air.

Yang Chunsik, CEO of KT Skylife, said, “In the second quarter, the net increase in mobile and internet subscribers continued, driving growth in telecommunications service sales. We will enhance shareholder value by expanding the net increase of skyTPS subscribers while continuing to invest in original content.”