2023 Annual and Q4 Earnings Announcement
5G Subscribers Account for 73% of Total
Balanced Growth in Wired and Wireless Revenue and Enterprise Services
KT achieved a record high consolidated revenue of KRW 26.387 trillion last year.
KT announced on the 8th that its revenue last year reached KRW 26.387 trillion, up 2.9% from the previous year, marking the largest scale since its listing. Operating profit was KRW 1.6498 trillion, down 2.4% from the previous year. KT stated, "Operating profit declined due to the base effect from the one-time real estate sale gain (KRW 75 billion) reflected in 2022."
Revenue in the fourth quarter of last year rose 1.8% year-on-year to KRW 6.6984 trillion. Operating profit increased from KRW 151.4 billion to KRW 265.6 billion during the same period, growing 75.4% in one year.
Last year, wireless revenue recorded KRW 6.8696 trillion, up 2.3% from the previous year, driven by the expansion of 5G subscribers and growth in roaming revenue. Thanks to the launch of various plans and value-added services as well as new strategic devices, 5G subscribers surpassed 9.83 million, accounting for 73% of total handset subscribers.
Jang Min, KT’s Chief Financial Officer (CFO), said, "Last year, the 5G share expanded and continued to grow, but we expect the growth rate to slow somewhat. Our goal this year is to increase the proportion of our own 5G subscribers to over 80%." He added, "We will grow the wireless business through value innovation in pricing and distribution."
Pre-order customers are receiving the Galaxy S24 at the KT Plaza Gwanghwamun Central Branch in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@
Specifically, KT announced plans to enhance customer value by ▲offering mid-to-low priced and online direct plans ▲strengthening non-face-to-face distribution channels ▲providing customized products for customers.
Last year, fixed-line business revenue rose 1.0% year-on-year to KRW 5.2711 trillion. Although fixed-line phone revenue declined 7.6% due to decreased demand for home landlines, ultra-high-speed internet revenue increased 2.8% year-on-year as the share of gigabit internet subscribers grew. The media business saw a 2.3% increase in revenue year-on-year, driven by IPTV subscriber acquisition focused on high ARPU (average revenue per user).
Enterprise services (B2B) business revenue also increased. Last year, enterprise internet and data business revenue grew 4.7% year-on-year to KRW 1.276 trillion, driven by increased traffic from corporate customers. KT explained, "The rise in digital transformation (DX) demand and the performance of five major growth businesses?AICC, IoT, smart mobility, smart spaces, and energy?stood out." Revenue from these five major growth businesses increased 2.4% year-on-year.
Through a conference call, KT presented specific plans to grow the five major growth businesses in B2B. First, AICC aims to solidify its leadership as a market leader. In IoT, KT plans to strengthen the wireless payment sector, and in mobility, it will explore global markets. In the smart spaces sector, KT intends to target government and local government smart city industries. Although the energy sector market is still small, KT plans to increase its market share.
Looking at the performance of major group affiliates last year, BC Card recorded KRW 4.025 trillion in revenue, up 3.3% year-on-year, driven by growth in new businesses. KT Estate’s revenue increased 21.8% to KRW 594.5 billion, due to growth in office rental revenue and a strong hotel business. KT Cloud recorded KRW 678.3 billion in revenue last year, a 57% increase year-on-year, driven by previously secured public cloud projects and growth in the IDC business.
CFO Jang said, "In 2024, we will strive to enhance KT’s corporate and shareholder value by achieving not only quantitative growth but also qualitative growth through strengthening IT capabilities and fundamental business innovation."
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