KT reported an operating profit of 505.3 billion won for the third quarter of this year. Although the profit decreased compared to the same period last year due to a base effect from one-time sales gains, contributions from key group companies in data, real estate, and content increased.
On November 10, KT announced that its consolidated revenue for the third quarter reached 6.9975 trillion won, with an operating profit of 505.3 billion won. This represents a decrease of 1.8% and 6.1%, respectively, compared to the same period last year.
On a separate basis, revenue was 4.9878 trillion won, and operating profit was 299.3 billion won. The decline in operating profit was attributed to the impact of a customer reward program that ended in July and increased costs related to the advancement of artificial intelligence (AI) initiatives.
Service revenue from the wireless business fell by 3.9% year-on-year due to the customer reward program's effects. However, since July, the launch of flagship devices and the expansion of premium plans have shown signs of recovery. As of the end of the third quarter, the proportion of 5G subscribers reached 83.5% of all handset subscribers.
Revenue from the wired business decreased due to a decline in home landline sales and a drop in advertising and pay-per-view revenue from the media sector. However, subscribers for high-speed internet and Internet Protocol Television (IPTV) increased by 1.4% and 0.5%, respectively, compared to the previous year, with the share of gigabit internet subscriptions rising to 70.3%.
Despite growth in corporate internet and data services and AI initiatives, corporate service revenue decreased by 0.7% year-on-year due to the base effect from the completion of large-scale projects last year. Conversely, the cumulative order volume for the third quarter increased by over 20% compared to the previous year, with ongoing large project contracts for AI data center construction and AI computing center networks. Revenue conversion from pre-ordered projects will begin in earnest in the fourth quarter.
The KT Group is expanding its growth base for AI initiatives by focusing on AI infrastructure supply and commercialization of new AI businesses. The AI data center (AIDC) is set to expand to over 1 gigawatt (GW) by 2031, with six new data centers scheduled to be operational sequentially starting from 2027 in Bucheon, followed by Goyang, Gunsan, and Yongin in 2028, and Ansan in 2029.
The capacity of undersea cables will be increased by over 90 terabits per second (Tbps), diversifying existing land-based hubs from Busan to Jeju, the southwestern region, and the southeastern region.
KT plans to enhance its AX infrastructure competitiveness by connecting over 3,500 local offices to AI edge services, covering everything from AIDC to global networks and AI edge capabilities.
Additionally, last month, KT launched its token factory. The company has established a partnership with OpenRouter, a global AI model routing platform, aiming to expand its global AI model offerings to over 500.
The contribution of key group companies to profits has also increased. KT Cloud continued its stable revenue growth in the third quarter, supported by its core businesses in data centers and cloud services. The increase in colocation revenue was driven by higher utilization rates at the Gasan data center. In the cloud sector, demand for cloud transitions from public institutions and the expansion of high-performance computing support contributed to revenue growth.
KT Estate reported a 39.1% increase in revenue year-on-year for the third quarter, driven by growth in its Daejeon Dunsan development project and hotel and rental businesses.
Content subsidiaries saw a 12.1% increase in revenue year-on-year for the third quarter, fueled by growth in KT Studio Genie and KT Mili's Library.
K Bank's net profit for the third quarter increased by 119% year-on-year, supported by an expanded customer base and growth in loans to individual business owners.
In line with its corporate value enhancement plan, KT completed a 250 billion won share buyback this year, similar to last year. Last month, the company declared a cash dividend of 600 won per share for the third quarter, which is set to be paid on November 12.
Min Hye-byeong, KT's Chief Financial Officer, stated, "Despite changes in the internal and external management environment in the third quarter, we have solidified our AX growth strategy and continued the growth momentum of key group companies. We will strive to restore profitability in our core telecommunications business and accelerate growth in B2B and AX to enhance corporate value as an AX platform company."
On a separate basis, revenue was 4.9878 trillion won, and operating profit was 299.3 billion won. The decline in operating profit was attributed to the impact of a customer reward program that ended in July and increased costs related to the advancement of artificial intelligence (AI) initiatives.
Service revenue from the wireless business fell by 3.9% year-on-year due to the customer reward program's effects. However, since July, the launch of flagship devices and the expansion of premium plans have shown signs of recovery. As of the end of the third quarter, the proportion of 5G subscribers reached 83.5% of all handset subscribers.
Revenue from the wired business decreased due to a decline in home landline sales and a drop in advertising and pay-per-view revenue from the media sector. However, subscribers for high-speed internet and Internet Protocol Television (IPTV) increased by 1.4% and 0.5%, respectively, compared to the previous year, with the share of gigabit internet subscriptions rising to 70.3%.
Despite growth in corporate internet and data services and AI initiatives, corporate service revenue decreased by 0.7% year-on-year due to the base effect from the completion of large-scale projects last year. Conversely, the cumulative order volume for the third quarter increased by over 20% compared to the previous year, with ongoing large project contracts for AI data center construction and AI computing center networks. Revenue conversion from pre-ordered projects will begin in earnest in the fourth quarter.
The KT Group is expanding its growth base for AI initiatives by focusing on AI infrastructure supply and commercialization of new AI businesses. The AI data center (AIDC) is set to expand to over 1 gigawatt (GW) by 2031, with six new data centers scheduled to be operational sequentially starting from 2027 in Bucheon, followed by Goyang, Gunsan, and Yongin in 2028, and Ansan in 2029.
The capacity of undersea cables will be increased by over 90 terabits per second (Tbps), diversifying existing land-based hubs from Busan to Jeju, the southwestern region, and the southeastern region.
KT plans to enhance its AX infrastructure competitiveness by connecting over 3,500 local offices to AI edge services, covering everything from AIDC to global networks and AI edge capabilities.
Additionally, last month, KT launched its token factory. The company has established a partnership with OpenRouter, a global AI model routing platform, aiming to expand its global AI model offerings to over 500.
The contribution of key group companies to profits has also increased. KT Cloud continued its stable revenue growth in the third quarter, supported by its core businesses in data centers and cloud services. The increase in colocation revenue was driven by higher utilization rates at the Gasan data center. In the cloud sector, demand for cloud transitions from public institutions and the expansion of high-performance computing support contributed to revenue growth.
KT Estate reported a 39.1% increase in revenue year-on-year for the third quarter, driven by growth in its Daejeon Dunsan development project and hotel and rental businesses.
Content subsidiaries saw a 12.1% increase in revenue year-on-year for the third quarter, fueled by growth in KT Studio Genie and KT Mili's Library.
K Bank's net profit for the third quarter increased by 119% year-on-year, supported by an expanded customer base and growth in loans to individual business owners.
In line with its corporate value enhancement plan, KT completed a 250 billion won share buyback this year, similar to last year. Last month, the company declared a cash dividend of 600 won per share for the third quarter, which is set to be paid on November 12.
Min Hye-byeong, KT's Chief Financial Officer, stated, "Despite changes in the internal and external management environment in the third quarter, we have solidified our AX growth strategy and continued the growth momentum of key group companies. We will strive to restore profitability in our core telecommunications business and accelerate growth in B2B and AX to enhance corporate value as an AX platform company."
* This article has been translated by AI.
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