KT Q3 Earnings... Consolidated Revenue of 6.4546 Trillion KRW
"Accelerating Multifaceted Innovation for AICT Transition"
KT announced on the 8th that it recorded consolidated sales of KRW 6.4546 trillion and operating profit of KRW 464.1 billion in the third quarter of this year. These figures represent a 0.6% decrease and a 44.2% increase, respectively, compared to the same period last year.
KT stated that consolidated sales decreased by 0.6% year-on-year due to the impact of content subsidiaries, while operating profit increased by 44.2% during the same period as costs related to wage negotiations were reflected early in the second quarter.
On a separate basis, sales were KRW 4.765 trillion and operating profit was KRW 338.9 billion, marking increases of 2.0% and 75.1%, respectively, compared to the same period last year.
By segment, the wireless business grew by 1.9% year-on-year to KRW 1.7404 trillion. The launch of flagship devices in the third quarter led to 5G subscribers accounting for 76% of total subscribers, and growth in the Mobile Virtual Network Operator (MVNO) business also contributed.
On the other hand, the wired business recorded sales of KRW 1.3126 trillion, down 1.3% year-on-year. Although IPTV subscriber growth was maintained, media sales declined significantly (-1.2%) due to decreases in paid content purchases (PPV) and advertising revenue. Internet sales increased by 0.4% year-on-year due to growth in gigabit internet subscribers and expansion of value-added services.
Enterprise service business sales grew 2.5% year-on-year to KRW 926.4 billion, driven by growth in dedicated lines and AI Contact Center (AICC) businesses.
Major group companies in finance, real estate, and digital transformation (DX) also continued to deliver steady performance.
K-Bank surpassed 12 million customers in the third quarter, with deposit balances increasing 27.4% year-on-year to KRW 22 trillion and loan balances rising 26.4% to KRW 16.2 trillion.
KT Estate's sales grew 3.5% year-on-year to KRW 147.5 billion due to growth in rental sales from offices and hotels. The increase in hotel sales was significantly influenced by package sales during the summer vacation period.
KT content subsidiaries such as Nasmedia and KT Studio Genie saw sales decline 18.3% year-on-year to KRW 156.2 billion due to a shrinking content market. However, KT noted that the consecutive hits of "Your Honor" and "To My Harry" aired in the third quarter indicate potential for future growth.
KT Cloud's sales increased by 6.8% to KRW 207 billion, driven by growth in key business sectors and an expanded customer base.
BC Card's sales decreased 6.5% year-on-year to KRW 931.4 billion, but KT explained that operating profit increased during the same period thanks to growth in its own card business and efforts to improve profitability through financial business rebalancing.
Kim Young-seop, CEO of KT, attended the 'AICT Business Strategy Press Conference' held on the 10th at Novotel Ambassador Dongdaemun in Jung-gu, Seoul, and answered reporters' questions about the background of cooperation with Microsoft, future plans, and business strategies toward becoming an 'AICT Company.' Photo by Jo Yong-jun jun21@
KT plans to accelerate its transformation into an AICT (Artificial Intelligence + Information and Communication Technology) company by driving innovation across capabilities, business, and workforce structure. In September, it formed a strategic partnership with Microsoft (MS), and on the 5th, it announced a plan to enhance corporate value by setting a consolidated return on equity (ROE) target of 9-10% by 2028.
Recently, KT has also been implementing workforce reallocation by transferring about 5,700 field employees to newly established technology-specialized subsidiaries or accepting voluntary retirement applications. As of the 4th, a total of 1,723 employees wished to transfer to the new subsidiaries, and about 2,800 employees applied for voluntary retirement.
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