"PB Products Are a Savior"... KT Alpha Q2 Operating Profit Up 157.3% YoY (Comprehensive)

Operating Profit 6.9 Billion KRW... Up 157.3% YoY
Positive Impact from PB Product Launch and LB Investment Expansion

KT Alpha significantly increased its operating profit through the successful launch of its own fashion brand (PB) products and expanded investments in licensed brands (LB).

KT Alpha announced on the 9th that its operating profit for the second quarter was 6.9 billion KRW, a 157.3% increase compared to the same period last year. During the same period, sales decreased by 5.3% to 110.1 billion KRW. Net profit for the period rose by 2762.1% to 6.6 billion KRW compared to the same period last year.

KT Alpha [Photo by KT Alpha]

Looking at each business segment, commerce business sales were 73.2 billion KRW, down 9.1% year-on-year, but overall operating profit was boosted through securing product competitiveness and cost efficiency. KT Alpha Shopping successfully launched the PB product Le Toi last year and has continued aggressive investments this year in LBs such as Henry Lloyd, Josjin, and Zexio. Through these efforts, it is focusing on diversifying its independent fashion brands to secure product competitiveness.

Mobile gift commerce business sales were 23.2 billion KRW, a 1.1% decrease year-on-year. This is interpreted as a result of a decline in sales of wired advertising products, one of the call value-added services. KT Alpha plans to enhance the profitability of call value-added services by expanding its customer base through differentiated customer services based on its number one market share in the B2B market and by launching new priority advertising products such as Sajangnim TV. Meanwhile, Aqua Retail, established in Vietnam in June as a joint venture with RT Media, will begin full-scale business activities in the second half of this year to secure future customers in the global market and expand the mobile coupon value chain.

Content media business sales were 13.7 billion KRW, down 12.5% year-on-year. This was due to strong sales of new films released in the first half of the year, and the increase in advertising revenue from the movie channel Cinema Heaven and FAST channels, as well as the expansion of overseas sales performance of global copyrights, also had a positive impact. The content media business plans to improve profitability by strengthening content sales operations targeting OTT platforms, expanding movie channel coverage, and increasing the acquisition and distribution of global copyrights.

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