KT Alpha Reports 3Q Operating Profit of 3.3 Billion KRW, Up 21.3% Year-on-Year

KT Alpha, a data-driven home shopping company, announced on the 6th that its operating profit for the third quarter of this year was tentatively estimated at 3.3 billion KRW, an increase of 21.3% compared to the same period last year.

According to the disclosure, third-quarter sales increased by 0.1% to 99.4 billion KRW. However, net profit for the period decreased by 10.9% to 4.4 billion KRW.

KT Alpha's business is divided into three segments: T-commerce (data home shopping), mobile gift certificates, and content media.

Sales from the T-commerce business recorded 63.4 billion KRW, down 2.8% from the same period last year due to adjustments in the proportion of direct purchases following a product portfolio restructuring strategy.

KT Alpha Shopping is strengthening its market competitiveness by expanding its fashion PB (private brand) lineup such as LetuA, launching exclusive fall and winter fashion brands in the second half of the year like Chouzen, Bruno J, Tabaroni Cashmere, and Fatmus, and enhancing short-form content.

Sales from the mobile gift certificate business increased by 14.1% to 25.3 billion KRW. KT Alpha Shopping analyzed that this significant growth in sales was due to active sales expansion targeting corporate clients and strengthened online marketing.

In particular, following the unsettled payments incident involving Tmon and Wemakeprice, the handling volume (total sales amount of products) of mobile gift certificates during the Chuseok season increased by 23% compared to last year. Sales from the content media business were recorded at 10.6 billion KRW, down 9.8%.

On the 7th of last month, KT Alpha held a board meeting and resolved to transfer all business operations of the content business division within the content media sector to KT Studio Genie. Accordingly, KT Alpha announced plans to restructure its business around its core commerce business and focus company-wide capabilities on strengthening competitiveness in the commerce sector.

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