KT Alpha improved its profitability in the third quarter of this year, reporting a slight increase in operating profit despite a decline in revenue. The company attributed its success to a sales strategy that integrates TV and mobile, which helped drive a double-digit increase in transaction volume while accelerating its transition to AI and data-driven business operations.
On November 11, KT Alpha announced that it recorded revenue of 93.8 billion won and an operating profit of 11.5 billion won for the third quarter. While revenue decreased by 2.6% compared to the same period last year, operating profit rose by 1.5%.
In contrast to the revenue decline, the actual transaction volume, which reflects the scale of business activity, increased by 15.3%. This growth rate is 6.3 percentage points higher than the 9.0% increase seen in the first half of the year. The company explained that while accounting revenue decreased due to a shift towards a consignment-based product operation model, the overall transaction scale expanded.
By business segment, the transaction volume for KT Alpha Shopping, its T-commerce service, grew by 10.2% year-on-year in the third quarter. The company's focus on a 'mobile-first' strategy, which strengthened its own mall products and promotions, proved effective. Additionally, product offerings tailored to the Chuseok holiday and new planned programs, along with partnership marketing, contributed to increased customer engagement.
The mobile gift certificate business also continued its growth trend, with transaction volume rising by 19.6% compared to the previous year. This growth was driven by expanded partnerships with major platforms and increased demand for integrated gift certificates that can be used at various locations.
KT Alpha plans to fully implement business innovations utilizing AI and data starting in the fourth quarter. Under its management strategy 'SHIFT 2026', the company aims to expand its AI data analysis platform across the organization and establish a 'connected commerce' system that links TV and mobile.
KT Alpha Shopping will enhance its 'Live Talk' feature, which includes AI notification and response capabilities, to facilitate real-time communication with customers during data broadcasts. The corporate mobile gift certificate service 'Giftishow Biz' will also introduce solutions that respond to AI search environments.
The company is also focused on enhancing product competitiveness. KT Alpha Shopping plans to introduce exclusive fashion brands such as 'Le Toit', 'Dkim by Kim Se-ryong', and 'Superior', while Giftishow will expand its integrated gift certificates that allow customers to choose their preferred usage locations.
As of the end of the third quarter, KT Alpha maintains a debt-free structure. The company is also pursuing a shareholder return policy with a dividend payout ratio of 30%, balancing growth investments with dividends.
Park Jung-min, CEO of KT Alpha, stated, "While continuing to improve our profitability, we achieved double-digit growth in transaction volume for both businesses through mobile transformation and expansion of sales channels. We will swiftly execute structural innovations and foundational enhancements to deliver results starting early next year."
* This article has been translated by AI.
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