KT Reports Operating Profit of 576.1 Billion KRW in Q2, Highest Since 2011 (Update)

Earnings Surprise Exceeding Market Expectations
Balanced Growth in B2B and B2C Businesses
"Will Continue Performance Improvement Under Stable Management System"

KT's operating profit for the second quarter of this year increased by 25.5% compared to the same period last year, marking an 'earnings surprise.'

KT announced on the 7th that its sales and operating profit for the second quarter reached 6.5475 trillion KRW and 576.1 billion KRW, respectively. These figures represent increases of 3.7% and 25.5% compared to the second quarter of last year.

[Image source=Yonhap News]

Initially, securities firms had predicted KT's sales and operating profit to be around 6.52 trillion KRW and 510 billion KRW, respectively.

The announced sales figure is the highest for a second quarter since 2010, and the operating profit is the largest since 2011.

KT stated, "We have demonstrated growth potential centered on a balanced growth between business-to-consumer (B2C) and business-to-business (B2B) operations, as well as KT Group's core portfolio."

By business segment, the B2B platform business showed results due to revenue generation from large projects previously secured and a recovery in the real estate business.

B2B business orders grew by 19% compared to the same period last year, and the order volume is expected to maintain over 3 trillion KRW annually.

B2B telecommunications business sales increased by 7.6% year-on-year. Corporate internet and data sales rose by 5.2% due to an increase in dedicated lines for CCTV, and corporate call business sales increased by 12.3% thanks to the revitalization of the budget phone market.

Among B2C platform businesses, the IPTV business saw a 1.2% increase in sales as subscribers grew, centered on premium plans.

B2C telecommunications business sales increased by 0.8% year-on-year as the number of 5G subscribers and ultra-high-speed internet GiGA subscribers grew.

In the second quarter, KT showed steady growth centered on its core portfolios such as finance, real estate, content, and digital transformation (DX).

BC Card's sales increased by 5.9% compared to the same period last year due to an increase in credit card purchase amounts and loan business. K-Bank has maintained operating profits for nine consecutive quarters since the second quarter of 2021.

KT Estate operates a total of five hotels in Seoul, and hotel room occupancy rates have significantly improved due to an increase in foreign tourists.

KT Studio Genie and skyTV have enhanced their content competitiveness by scheduling seven original dramas and five original variety shows in the first half of this year.

KT Cloud, within one year of its launch, was recognized with a corporate value of around 4 trillion KRW and successfully attracted investments worth 600 billion KRW.

Meanwhile, KT plans to convene an extraordinary general meeting of shareholders on the 30th to address the appointment of Kim Young-seop as the new CEO candidate.

Kim Young-jin, KT's Chief Financial Officer (CFO), said, "With the confirmation of the new CEO candidate, we will continue to improve performance under a stable management system in the second half of the year and strive to enhance corporate value."

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