KT Reports 688.8 Billion KRW Operating Profit in Q1, Up 36% Year-on-Year

Sales Reach 6.8 Trillion KRW, Net Profit Hits 566.8 Billion KRW
Workforce Restructuring and Real Estate Sales Profits Reflected
Aiming to Launch Sovereign Cloud with Microsoft in Q2

KT announced on the 9th that its consolidated operating profit for the first quarter of this year was provisionally tallied at 688.8 billion KRW, a 36% increase compared to the same period last year. Revenue reached 6.8451 trillion KRW, up 2.9% year-on-year. Net profit rose by 44.2% to 566.8 billion KRW.

The strong performance was driven by workforce restructuring carried out last year, as well as growth in core businesses such as telecommunications and AX (AI transformation). The wireless business achieved 1.0% revenue growth year-on-year, supported by the expansion of the 5G subscriber base and the growth of the budget phone business. Revenue from AI contact centers and IT system integration businesses also increased by 10.2%.

One-off real estate sales profits were also partially reflected. Through its affiliate 'NextConnect PFV,' KT began occupancy of the Lotte East Pole Apartments, developed on the Gangbuk Headquarters site near Guui Station in Seoul, in March. As a result, a portion of the sales revenue and profit was included in the first quarter's performance. The 860-unit residential development project at the KT Daejeon Human Resources Development Center site has also completed all unit sales, securing a revenue base.

KT plans to accelerate its transition into an AICT (AI + Information and Communication Technology) company this year to maintain its solid growth. Together with Microsoft, with whom it agreed to collaborate in the AI field last year, KT is jointly developing a Korean AI model and a sovereign cloud, the SPC (Secure Public Cloud), aiming for launch in the second quarter.