KT achieved good performance based on the stability of mobile, Internet, and TV businesses and the e..

KT achieved good performance based on the stability of mobile, Internet, and TV businesses and the expansion of its artificial intelligence (AI) portfolio. In addition, expectations in the investment market are growing as the prospect of reflecting profits from the hacking of USIM data by competitors is added.

KT announced on the 11th that its sales in the first quarter of this year based on consolidated financial statements rose 2.9% year-on-year to 6.84 trillion won. Operating profit surged 36% to 688.8 billion won during the same period. Net profit rose 44.2% to 566.8 billion won.

Specifically, sales in the wireless business sector increased 1% from the same period last year due to the expansion of the 5th generation mobile communication (5G) subscriber base and the growth of the affordable phone business. In the fixed-line business sector, it increased 1.3 percent due to the expansion of high-speed Internet and additional service use. On the other hand, sales of fixed-line telephones fell 10.5% as demand fell.

Sales of the media business increased 0.1% year-on-year due to the expansion of the use of premium Internet TV (IPTV) pricing plan and set-top box (STB). KT plans to upgrade its customer experience by introducing a media AI agent to Genie TV while continuing to cooperate with Microsoft (MS).

Corporate service sales fell 0.3% due to the rationalization of low-profit businesses despite the growth of corporate Internet and data businesses, AI, and information technology (IT) businesses. However, sales of AI contact centers (CC) and IT-built businesses increased by 10.2%, driving performance.

KT Cloud’s cloud and data center (DC) business division also grew evenly, increasing sales by 42.2% compared to the previous year. KT Group’s “NextConnect PFV” began moving into Lotte Eastfall apartments developed on the site of its Gangbuk headquarters in Guui Station in March, reflecting some of its sales and profits in the first quarter’s performance.

In addition, the move into Lotte Eastfall, which was developed on the site of the Gangbuk headquarters in Guui-dong, Seoul, began in March, reflecting some of the profits from the sale. KT Estate has completed the sale of an 860-unit apartment development project being promoted on the site of the Daejeon Human Resources Development Institute.

It also disclosed the implementation status of its corporate value enhancement plan. When KT announced its value-up program in November last year, it set its consolidated return on equity (ROE) target of 9-10% in 2028 and suggested ways to achieve it. To this end, the company has decided to sell Initech and PlayD to improve profitability and buy back and retire 250 billion won worth of treasury stocks.

Some analysts said that the large-scale movement of subscribers in the aftermath of the hacking accident at SK Telecom could be a positive factor. In fact, a total of 274,743 subscribers moved from SK Telecom to KT and LG Uplus from the 22nd to the 8th of last month. Including affordable phones is expected to increase the scale of departure.

KT CEO Kim Young-seop said at the Corporate Day held for institutional investors and analysts, “We have been pursuing AICT strategies that add AI and IT under the awareness that it is difficult to grow with communication alone,” adding, “Without innovation, there is no growth, and without growth, there is no negligence.” We want to collaborate with global companies with the best technology to provide better technology and services to customers,” he stressed.