As a result of KT Alpha’s focus on securing profitability, it significantly increased its operating ..

As a result of KT Alpha’s focus on securing profitability, it significantly increased its operating profit in the first quarter of this year.

KT Alpha announced on the 14th that its operating profit in the first quarter of this year increased 32.6% year-on-year to 12.2 billion won.

Due to the reorganization of the business portfolio, sales fell 0.7 percent to 96.5 billion won from 97.3 billion won. Net profit increased 31.4% from 8.2 billion won to 10.8 billion won.

KT Alpha explained that it has been reorganizing its business centering on commerce since last year, and has been focusing on strengthening the core competitiveness of the T-commerce (data home shopping) business and mobile gift certificate businesses and improving profitability.

Instead of introducing various differentiated products and broadcasts, the T-commerce business reduced the proportion of direct purchases and operated mainly on consignment to increase profitability. Sales fell 0.7% to 66.5 billion won from 69.7 billion won a year earlier, but operating profit rose more than 400%.

KT Alpha Shopping explained that it focused on increasing customer satisfaction by introducing a large number of strategic brands centered on representative programs such as “Lee Soo-jung’s Sujeong Shop,” “Choi Hyun-woo’s Choice,” “Ryu Sang’s Great Show,” and “Good Good Show.”

KT Alpha previously said in September last year that it has set a “young senior” female group in their 40s and 60s as its main customers, explaining △ expanding exclusive products of its own brand (PB) ahead of the fall and winter (FW) season △ launching differentiated co-planned brands △ overseas premium brands. It seems that profits have been maximized by targeting customers who actively consume fashion and beauty items.

KT Alpha plans to increase efficiency by integrating and reorganizing ‘K Deal’, a text-based commerce, and ‘Shopping Lounge’, a shopping service within the KT membership application (app). It plans to gather marketing capabilities of KT Group to support promotional branding.

The mobile gift certificate business recorded 30.1 billion won in sales, up 9% from 27.6 billion won a year earlier thanks to customized sales strategies for corporate customers. Trading volume also grew 47%.

KT Alpha is the No. 1 company in the domestic B2B market with 150,000 corporate customers in the mobile gift certificate market.

A company official said, “Gift Show will increase customer satisfaction and strengthen business competitiveness by launching new products such as integrated gift certificates by major retailers and integrated gift certificates by category.”