KT Corp Q3 Profit Jumps 44%, Plans Digital Transformation

Seoul, South Korea- KT Corp (030200. KS) reported a 44.2% surge in third-quarter operating profit to KRW 464.1 billion (US$334.4 million), despite a slight decline in consolidated revenue.

The company's consolidated revenue fell 0.6% year-on-year to KRW 6.65 trillion (US$4.79 billion), while standalone revenue increased 2.0% to KRW 4.77 trillion (US$3.43 billion). 

Service revenue grew 1.2% to KRW 4.07 trillion (US$2.93 billion).

Net income rose 32.9% to KRW 383.2 billion (US$276.1 million), while EBITDA increased 13.4% to KRW 1.43 trillion (US$1.03 billion).

Wireless service revenue grew 2.0% as 5G subscribers reached 10.25 million, representing 76.3% of handset users. 

Average revenue per user (ARPU) increased by 2.1% to KRW 34,560 (US$24.90).

The company's B2B service revenue rose 2.5% to KRW 926.4 billion (US$667.4 million), with real estate revenue jumping 15.1% to KRW 89.6 billion (US$64.6 million).

Among subsidiaries:

• kt cloud revenue: +6.8% to KRW 207.0 billion (US$149.1 million)
• KT Estate: +3.6% to KRW 147.5 billion (US$106.3 million)
• BC Card: -6.5% to KRW 931.4 billion (US$671.0 million)
• Skylife: -1.4% to KRW 256.9 billion (US$185.1 million)
• Content subsidiaries: -18.3% to KRW 156.2 billion (US$112.5 million)

The company's digital banking unit, K-Bank, reported deposits of KRW 22 trillion (US$15.85 billion), up 27.4%, and loans of KRW 16.2 trillion (US$11.67 billion), up 26.4%.

Balance sheet figures showed:

• Total assets: KRW 42.75 trillion (US$30.80 billion), down 2.8%
• Cash and equivalents: KRW 3.95 trillion (US$2.85 billion), up 27.1%
• Total liabilities: KRW 23.56 trillion (US$16.97 billion), down 6.7%
• Net debt-to-equity ratio decreased by 8.2 percentage points to 30.3%

KT announced plans to triple its AI/IT revenue by 2028 compared to 2023 levels and target a 9-10% return on equity. 

The company plans a share buyback program worth KRW 1 trillion (US$720.5 million) between FY2025-2028.

In September, KT formed a strategic partnership with Microsoft to enhance AI and cloud capabilities as part of its digital transformation strategy.

"KT Group will grow into an AICT company based on strategic partnership with Microsoft," said KT CFO Min Chang, adding that the company would focus on implementing its corporate value enhancement plan.

(US$1 = KRW 1,388.70)