KTH's 3Q Operating Profit Down 26.2%... K Shopping Achieves Highest Quarterly Sales

Increase in Sales of Food and Daily Necessities Category
Platform Investment Costs Reflected... Operating Profit Declines

[Asia Economy Reporter Cha Min-young] KTH, which operates K Shopping, announced on the 12th that it recorded sales of 85.2 billion KRW, operating profit of 3 billion KRW, and net profit of 800 million KRW in the third quarter of this year. Sales increased by 4.4% compared to the same period last year, while operating profit and net profit decreased by 26.2% and 11.8%, respectively.

Commerce business sales were tentatively recorded at 56.6 billion KRW, up 16.1% year-on-year, and operating profit was 3.4 billion KRW, down 10.4%. The commerce business set a quarterly sales record due to expanded food categories in preparation for the holiday season and increased programming efficiency responding to demand for daily necessities such as masks. Operating profit declined due to increased platform costs from expanded channel competitiveness. The commerce business plans to provide differentiated services unique to T-commerce, centered on the TV MCN media commerce platform launched last September.

Information and Communication Technology (ICT) business sales recorded 20.6 billion KRW, a 0.5% increase compared to the same period last year. The ICT business is expanding orders for group strategic businesses centered on big data, Internet of Things (IoT), and media, and plans to continuously expand its proprietary solution business, including the AI big data solution Daisy TA.

Content business sales recorded 8.1 billion KRW, a 35.0% decrease compared to the same period last year. The decline in sales was due to reduced film imports and delays in new content production caused by the impact of COVID-19. The content business plans to maximize the efficiency of existing copyrights by expanding the movie channel (Cinema Heaven) business.

This content was produced with the assistance of AI translation services.