KT's net profit surges 32.9% on low base effect

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KT's net profit surges 32.9% on low base effect

Published: 08 Nov. 2024, 15:23 Updated: 08 Nov. 2024, 15:23

LEE JAE-LIM
[email protected]

Logo of KT [KT]

Mobile carrier KT logged 383.2 billion won ($276.9 million) in net profit for the July-September period, a 32.9 percent surge compared to the year before due to the low base effect.

Its operating profit surged 44.2 percent on-year to 464.1 billion won, while sales fell 0.6 percent to 6.65 trillion won, according to its regulatory filing on Friday.

The company said its operating profit increased in the third quarter since it had posted weak profit a year earlier due to a wage deal and content sourcing.

For sales, its flagship mobile business posted a 2 percent increase to 1.7 trillion won in revenue thanks to increased subscriptions for the fifth-generation communications network.

However, cable sales dropped 1.3 percent on-year to 1.3 trillion won on increased internet users, while revenue from its corporate services rose 2.5 percent to 926.4 billion won on the growth of its AI contact centers.

KT also said its cloud and real estate affiliates showed robust performance, with KT cloud and KT estate posting a 6.8 percent and 3.6 percent increase in sales, respectively.

On the other hand, KT's financial arm, BC Card, showed a 6.5 percent decrease in sales, and sales from its content subsidiary slid 18.3 percent.

The mobile carrier said it will strive to accelerate its transformation into an AI company to foster further growth.

Logo of LG U+ [LG U+]

Another mobile carrier, LG U+, reported a net profit of 134.9 billion won for the third quarter, sliding 13.9 percent on-year from increased operating costs.

Its operating profit decreased 3.2 percent on-year to 246 billion won, while sales rose 6.1 percent to 3.8 trillion won.

Despite higher sales, the company said its net profit decreased because of the cost of installing a new computer network.

BY LEE JAE-LIM, YONHAP [[email protected]]