KT’s net profit up 15.9 percent in first quarter

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KT’s net profit up 15.9 percent in first quarter

KT’s net profit rose 15.9 percent in the first quarter compared to a year ago as TV and content business revenue increased, the company said Friday.

The net profit of Korea’s second largest telecoms provider reached 260 billion won ($222.2 million) in the first quarter, up from 224 billion won a year ago. KT’s operating profit climbed 1.3 percent to 402.1 billion won, and its sales rose 2.2 percent to 5.84 trillion won.

But revenue at the telecoms provider’s wireless division inch down 0.5 percent to 1.733 trillion won from 1.741 trillion won from a year ago. Wireless service sales rose 0.2 percent to 1.623 trillion won due to the increasing number of high-paying subscribers.

Despite seeing its wireless division’s revenue decrease, KT said strong growth in its media content business helped the company boost its profitability. Revenue from its media and content business rose 15.7 percent on year, from 554.2 billion won to 641.2 billion won.

KT said the company has attracted almost eight million Internet Protocol Television (IPTV) subscribers through March to post 12.9 percent year-on-year growth in its media business. The content business experienced 28.6 percent year-on-year growth to 128.5 billion won in the first quarter, due to the increasing number of Genie Music members and revenue from KT’s commerce arm.

The company’s capital expenditures, including investment in the construction of a nationwide 5G network, increased 133 percent year on year to 552.1 billion won in the first quarter. KT opened up its 5G coverage map when launching its 5G service, a move followed by other telecoms providers.

The company said it has attracted around 100,000 subscribers to its 5G service since April 3, more than any other carrier in the country.

KT’s debt ratio increased 9.1 percentage points to 125.6 percent.

BY KO JUN-TAE [ko.juntae@joongang.co.kr]
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