KT Alpha, 3Q Operating Profit Increase... Profitability-Centered Management Effect (Comprehensive)

Operating Profit 2.7 Billion KRW · Sales 99.2 Billion KRW
Net Income 4.9 Billion KRW

KT Alpha improved its operating profit by reducing unnecessary expenses in the home shopping business division, successfully enhancing profitability. However, sales declined across all sectors, including commerce, mobile gift commerce, and content media.

KT Alpha announced on the 9th that its operating profit for the third quarter of this year was 2.7 billion KRW, a provisional figure representing an 18.1% increase compared to the same period last year. During the same period, sales decreased by 11.8% to 99.2 billion KRW. Net profit for the period increased by 248.9% to 4.9 billion KRW.

KT Alpha [Photo by KT Alpha]

The increase in operating profit was driven by KT Alpha’s profitability-focused management, which included reducing unnecessary business expenses in the home shopping division and strengthening private brand (PB) products.

On the other hand, sales declined across all business sectors, including commerce, mobile gift commerce, and content media. Sales in the core commerce sector were 65.2 billion KRW, down 16% compared to the same period last year. This is attributed to the overall contraction of the home shopping industry due to the general economic downturn and a decrease in TV viewership ratings.

Sales in the mobile gift commerce sector recorded 22.2 billion KRW, a 3.5% decrease compared to the same period last year, reflecting the overall slump in the mobile coupon B2C market. Content media sales remained steady at 11.8 billion KRW, similar to the previous year. KT Alpha plans to strengthen distribution of new releases and library content targeting major platforms including OTT, while focusing on securing global rights and expanding overseas sales performance.

KT Alpha plans to pursue a rebound in commerce sector performance by strengthening product categories that meet customer needs, while also enhancing the mobile gift commerce business through expanding the new mobile coupon lineup and launching recipient-selectable services.

A KT Alpha representative stated, "We plan to focus on improving the performance of the underperforming commerce and mobile gift commerce sectors this quarter," adding, "In the fourth quarter, we will actively expand sales of private brand (PB) and licensed brand (LB) products and increase profits through efficient product programming."

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