KT Skylife Reports 63.7% Decrease in 3Q Operating Profit Due to Content Investment

KT Skylife announced on the 6th that it recorded consolidated sales of 260.5 billion KRW and an operating profit of 5.1 billion KRW for the third quarter.

Sales decreased by 2.8% compared to the same period last year, and operating profit dropped by 63.7%. The company explained that this was due to the reflection of intangible asset amortization costs related to the broadcasting development fund and content investments.

Skylife's standalone sales amounted to 180.7 billion KRW, an increase of 0.7% compared to the same period last year. Operating profit for the same period rose 32.4% to 10.8 billion KRW. EBITDA, an indicator of cash-generating ability, maintained a solid level at 23.8 billion KRW, which is 13% of sales.

Platform sales of Skylife and HCN were 238.4 billion KRW, maintaining a similar level to the same period last year (241.1 billion KRW). Telecommunications service sales increased due to growth in mobile and internet subscribers, and service sales also rose through subscriber recruitment efficiency improvements. Content sales of Skylife TV were 22.1 billion KRW, down 18.3% (4.9 billion KRW) compared to the same period last year.

Profitability-focused subscriber recruitment and policies to increase the proportion of subscribers acquired through the headquarters channel strengthened the company’s fundamentals. Subscribers for major products such as skyTV (satellite broadcasting), internet, and mobile continued to increase, resulting in a net increase of 13,000 skyTPS (skyTV, internet, mobile) subscribers.

ENA significantly raised the value of the ENA brand by ranking 9th in channel viewership ratings in September (individual 2049 channel viewership ranking). Paid broadcasting advertising market share also recorded 5.3% in September, matching the average of the third quarter of the previous year when the 'Extraordinary Attorney Woo' effect was reflected. In the fourth quarter, the romance variety show "Earthly Romance," featuring Jeon Hyun-moo and Pungja, and the drama "Tell Me That You Love Me," starring Jung Woo-sung and Shin Hyun-bin, are scheduled to air.

Yang Chun-sik, CEO of KT Skylife, said, “In the third quarter, we achieved subscriber recruitment efficiency, resulting in a net increase in skyTPS subscribers as well as an increase in Skylife’s standalone operating profit. We will strengthen Skylife’s fundamentals and enhance shareholder value through expanding the scale of net subscriber growth and continuous investment in original content.”

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