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KT’s consolidated operating profit for the third quarter of this year was 292.4 billion won, down 6.4% from the same period last year.
On the 6th, KT announced that it posted 61.2 trillion won in sales and 2.924 billion won in operating profit in the third quarter of this year. This is a decrease of 3.4% and 6.4% compared to the same period last year, respectively. According to the F & Guide consensus, KT’s third quarter sales and operating profit are estimated at KRW 6.81.9 billion and KRW 307.3 billion, which was slightly below the market forecast. KT announced that its operating profit decreased due to an increase in labor costs due to the conclusion of the collective agreement.
KT said: “Total sales for this quarter decreased by 3.4% compared to the same period last year, as sales of terminals and group companies decreased due to the new coronavirus (Corona 19), but sales of services were of 0.8 compared to the same period last year, as B2B businesses such as wireless, IPTV and AI / DX grew. % Has grown. “
Operating profit decreased 6.4% compared to the same period last year, but KT’s third-quarter operating profit increased 4.6%. Furthermore, KT added meaning to joining the club with an operating profit of KRW 1 billion with a cumulative operating profit of KRW 1.173 billion until the third quarter. KT earned the club’s 1 trillion won in operating profit for 5 years in a row until last year.
In the wireless business, sales increased 0.9% year-over-year due to the expansion of 5G subscribers. Cumulative 5G subscribers in Q3 were 2.81 million, which is roughly 20% of KT’s mobile phone subscribers. KT analyzed that “the ‘Super Plan Choice Plan’, which added content benefits such as video and music to Korea’s only 5G unlimited plan, got a favorable response from customers and recently launched the Netflix bundle plan to expand the options of the consumer”.
High-speed Internet and landline sales fell 0.3% and 7.0%, respectively, compared to the same period last year.
The IPTV business posted double-digit growth in both net subscriber growth and sales. With the conclusion of the home shopping streaming rate negotiations, sales increased 11.9% year-on-year. The net increase of 128,000 subscribers this quarter, thanks to greater competitiveness such as the Netflix alliance, reached 8.68 million accumulated subscribers. This is an assessment that it has firmly maintained its position as the number one operator in the paid broadcast market.
In the AI / DX business, accumulated sales in the third quarter increased 17% compared to the same period last year. KT recently introduced a new B2B brand, ‘KT Enterprise’, proclaiming a leap forward as a leading B2B DX (Digital Transformation) company.
KT announced that the BC Card and hospitality businesses posted a decline in sales due to the corona effect. BC Card sales fell 0.6% year-on-year and real estate sales in the hotel business fell 39.4% year-on-year.
On that day, KT announced that it had decided to enter into a trust agreement to acquire treasury shares of KRW 300 billion in order to enhance shareholder value by stabilizing the share price. It plans to buy 157.7839783 shares, or 6.03% of total shares outstanding, for one year from this date.
KT CFO Finance Department Yoon Kyung-geun said: “KT is strengthening shareholder performance through dividend policy and treasury stock purchases, while creating stable management performance to despite the prolonged outbreak of COVID-19 ”. I will do my best to achieve it. “
