KT Alpha Posts 12.2 Billion KRW Operating Profit in Q1, Up 32.6% Year-on-Year

First Quarter Revenue Reaches 96.5 Billion KRW, Down 0.7% Year-on-Year
"Profitability Improved Through Enhanced Product Competitiveness and Strategic Operations"

KT Alpha announced on May 14 that its provisional operating profit for the first quarter of this year reached 12.2 billion KRW, marking a 32.6% increase compared to the same period last year. In contrast, revenue for the same period decreased by 0.7% to 96.5 billion KRW, while net profit rose by 31.4% to 10.8 billion KRW.

A KT Alpha representative explained, "Since last year, we have restructured our business with a focus on commerce and enhanced the competitiveness of our T-Commerce and mobile gift certificate businesses, which has led to improved profitability."

T-Commerce (data home shopping) business revenue was 66.5 billion KRW, down 4.6% year-on-year. This was due to a reduction in the proportion of direct-purchase products and a shift to a consignment-based operation. However, the company stated that by strengthening product competitiveness and customer-tailored marketing, transaction volume increased by 3.5% and operating profit grew by more than 400% compared to the same period last year.

KT Alpha Shopping has launched a wide range of strategic brands centered on flagship programs such as 'Lee Sujeong's Sujeong Shop', 'Choi Hyunwoo's Choice', 'Ryu Sang's Great Shopick', 'Good Good Show', 'Fashion Check', 'Secret S Line', 'Dynamic Style', and 'Celeb's Choice'.

Going forward, the company plans to integrate and reorganize 'K Deal', KT's text message-based commerce, and 'Shopping Lounge', the shopping service within the KT Membership app, and to provide comprehensive support for the growth of small and medium-sized enterprises.

Revenue from the mobile gift certificate business increased by 9% year-on-year to 30 billion KRW. This was attributed to securing 150,000 corporate clients and maintaining the No. 1 market share in the domestic B2B mobile gift certificate market with 150,000 clients. Transaction volume grew by 47% compared to the previous year.

Giftishow plans to strengthen its business competitiveness by launching new products such as integrated gift certificates from major distributors and category-specific integrated gift certificates.