Sales Reach 7.1 Trillion Won, Driven by Cloud and Real Estate
Separate Operating Profit Up 0.6%
Multi-Model Strategy... Ongoing Collaboration with Microsoft
KT announced on the 7th that its consolidated sales for the third quarter of this year reached 7.1267 trillion won, with an operating profit of 538.2 billion won. Sales and operating profit increased by 7.1% and 16%, respectively, compared to the same period last year.
KT explained, "Growth was led by key group subsidiaries such as cloud, data center, and real estate, and a one-off real estate sales profit from the development of the Gangbuk headquarters site (Lotte East Pole Apartments in Gwangjin-gu) was reflected." On a separate basis, operating profit was 340.9 billion won, up 0.6% from the third quarter of last year.
By business segment, wireless business sales rose 4% year-on-year to 1.8096 trillion won, driven by an increase in 5G subscribers. The total number of wireless subscribers reached 28,328,000, an increase of about 900,000 from the previous quarter (27,491,000). Among them, 5G subscribers accounted for 80.7% of the total.
In the wired business, including internet and IPTV, sales amounted to 1.3319 trillion won, up 1.5% from the same period last year.
Regarding its artificial intelligence transformation (AX) business, KT is focusing on launching AI models based on a multi-model strategy, introducing partnership products with Microsoft, and operating the KT Innovation Hub.
Recently, KT unveiled three lineups under its AI multi-model strategy. It released its proprietary Korean large language model (LLM) "Midum K 2.0" in July, followed by the launch of "SOTA K" based on collaboration with Microsoft and "Llama K" utilizing Meta open source in September.
KT also opened the "KT Innovation Hub," which consults on industry-specific AX roadmaps in partnership with Microsoft. The hub will serve as an industry-specific support base where AX experts from both companies collaborate, allowing customers to directly experience AX solutions and receive consulting services.
Among major group subsidiaries, KT Cloud and KT Estate saw sales increase by more than 20% year-on-year, while BC Card and KT Skylife recorded decreases of 1.4% and 3.9%, respectively.
KT Cloud Data Center Reference Photo
KT Cloud continued its growth in the data center, AI, and cloud businesses. Business orders are expanding, particularly in the public sector, and the completion of the Gasan AI Data Center is expected to ensure stable revenue streams. KT Estate also posted higher sales compared to the same period last year, with steady growth in the office and hotel leasing sectors.
Additionally, KT is providing free USIM replacements to all customers in response to unauthorized micro-payment damages and personal information leaks. KT stated, "We plan to fully cooperate with the government investigation and will make every effort to strengthen network security and enhance customer protection measures."
The KT Director Candidate Recommendation Committee has officially begun the process of appointing the next CEO, starting with discussions on forming the candidate pool, and plans to select one CEO candidate within the year. The third-quarter dividend is set at 600 won per share and will be paid on the 20th.
Jang Min, KT's Executive Vice President and Chief Financial Officer (CFO), said, "Based on a stable financial structure, we will faithfully implement our shareholder return policy to increase market trust and strive to continuously enhance corporate value through the growth of our core telecommunications business and AX business."
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