KT Submarine Turns Profitable in Q1 Due to Fixed Cost Reduction

Q1 Operating Profit 1.54 Billion KRW... Sales Revenue 8.579 Billion KRW

KT Submarine announced on the 18th that its operating profit for the first quarter turned positive, recording 1.54 billion KRW. This is an increase of 3.469 billion KRW compared to the operating loss of 1.929 billion KRW in the previous quarter. Compared to the same period last year (63 million KRW), it increased by 2344.4%.

KT Submarine stated, "The significant decrease in fixed costs was due to asset efficiency," and added, "We are strengthening our submarine power business, and operating profit is expected to turn around for the first time in three years this year."

First-quarter sales amounted to 8.579 billion KRW, down 22.7% from the same period last year and 14.3% from the previous quarter. The company explained that this was due to the temporary contraction of the submarine communication construction market last year. They also added that annual performance is expected to improve once recently won projects ramp up from the second quarter.

Undersea cable laying vessel / Photo by KT Submarine

KT Submarine recently signed large-scale submarine cable laying and burial contracts with LS Cable & System, Japan's NEC, and others. It recorded orders worth approximately 29 billion KRW in the first quarter. Last month, it also secured a submarine cable contract worth 110 billion KRW in Taiwan.

The company has been modernizing its aging ship equipment since last year. It is making proactive investments to expand its submarine business, including purchasing new power laying vessels. As this year is considered the first year of growth momentum, cooperation with LS Cable & System is also being strengthened.

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