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KT Corp Q1 Profit Rises on Balanced Growth, Key Units' Gains

Source: Heelim

SEOUL, South Korea — KT Corp (NYSE: KT) reported a 4.2% increase in first-quarter operating profit on Friday, meeting market expectations. 

This was attributed to balanced growth in its business-to-consumer (B2C) and business-to-business (B2B) operations and improved performance of key group portfolio companies.

In a regulatory filing, the telecommunications operator disclosed that operating profit for the January-March period was KRW 506.5 billion (US$369.5 million), representing a 4.2% increase compared to the previous period. 

Revenue increased 3.3% to KRW 6.65 trillion (US$4.85 billion) from KRW 6.44 trillion a year earlier. 

For the first time in approximately 14 years, KT's service revenue exceeded KRW 4 trillion on a separate basis in the first quarter.

KT exhibited a persistent growth in its core mobile and fixed-line telecommunications services, driven by the expansion of premium 5G subscriptions and broadband upgrades. 

Nevertheless, the company also made considerable progress in becoming an "AICT" (AI, IoT, cloud, telecom) player, with double-digit revenue increases in its enterprise AI contact center and IoT businesses.

The considerable demand for AI-driven digital transformation among Korean companies presents KT with a favorable opportunity to package its telecommunications offerings with tailored AI solutions across different industries. 

"We will promptly respond to the needs of our enterprise customers and expand our growth momentum," stated Jang Min, KT's chief financial officer.

The company's principal portfolio companies, including the recently listed internet-only K bank, credit card unit BC Card, real estate arm KT Estate, and cloud service provider KT Cloud, also contributed to the robust results with enhanced earnings.

KT has implemented a quarterly dividend program to enhance shareholder value this year and has announced plans to cancel 2% of its treasury shares this month. 

"By attaining the status of an AICT company, we will endeavor to enhance corporate and shareholder value by securing future growth engines," Jang stated.