KT released its third-quarter results, showing declines in both revenue and operating profit.
On the 10th, KT reported consolidated revenue of 6.9975 trillion won and operating profit of 505.3 billion won for the third quarter of this year. They fell 1.8% and 6.1%, respectively, from the same period last year.
KT explained that the decline in performance was due to a base effect, as one-off gains from home sales related to land development for the Gangbuk Headquarters had been reflected in the third quarter of the previous year. Operating profit on a standalone basis was 299.3 billion won, affected by the customer reward program, which ended in July, and increased expenses for its AX business.
Nevertheless, KT said its core business was showing signs of recovery. Wireless service revenue fell 3.9% year on year but has been rebounding since July, driven by the launch of flagship devices and expanded sales of premium rate plans.
5G subscribers accounted for 83.5% of handset subscribers. Enterprise services revenue fell 0.7%, but cumulative order intake in the third quarter increased by more than 20%, with revenue conversion expected to gain momentum from the fourth quarter.
The contribution of group affiliates increased. KT Estate's revenue rose 39.1%, the content subsidiary's revenue rose 12.1%, and K Bank's net profit increased 119%.
The AX strategy also took concrete shape. KT plans to expand its AI data centers to more than 1 GW by 2031 and bring six new centers online sequentially, starting with Bucheon in 2027. On the 30th of last month, it launched the AI model platform “KT Token Factory” together with OpenRouter.
Min Hye-byung, KT's chief financial officer (CFO), said, “We will restore profitability in the core telecommunications business and fully drive B2B and AX growth.”
Reporter Lee Jeong-hwan ryanlee@aitimes.com
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