Seoul: KT Corp., South Korea's second-largest mobile carrier, has announced a significant increase in its second-quarter earnings, surpassing market expectations due to robust growth in its core business sectors. The company's net profit reached 733.3 billion won (approximately US$527.6 million) for the April-June period, marking a 78.6 percent increase from the previous year, as stated in its regulatory filing.
According to Yonhap News Agency, the reported earnings exceeded the market's anticipated figures, with analysts predicting an average net profit of 683.7 billion won. The data, provided by Yonhap Infomax, highlights a substantial jump in KT's operating profit, which soared by 105.4 percent year-on-year to 1.01 trillion won. Additionally, the company's revenue experienced a 13.5 percent rise, totaling 7.42 trillion won, marking the first time KT's quarterly operating profit has surpassed the 1 trillion won mark.
KT Corp. attributes this financial success to its leading mobile business, which witnessed a 1.6 percent increase in sales, driven by the growing number of fifth-generation (5G) service subscribers. The 5G users now make up 79.5 percent of KT's total mobile subscriptions. Furthermore, the company's fixed-line business also saw a 1.4 percent sales increase, fueled by a rise in internet service users and higher revenues from media and internet protocol television (IPTV) services. The number of IPTV subscribers climbed to 9.49 million in the second quarter, up from 9.42 million the previous year.
KT Corp. is committed to evolving into an "AICT" company-a blend of artificial intelligence (AI), telecommunications, and information and communications technology (ICT). Jang Min, KT's Chief Financial Officer, stated, "The company was able to enjoy significantly improved earnings on the back of solid growth in the main telecom business and the performance of the group's key portfolio." He further emphasized KT's dedication to accelerating its transition towards the AICT business model and ensuring sustainable growth.
In its forward-looking strategies, KT announced plans to invest at least 1 trillion won over the next five years to enhance data security. The company also intends to continue its collaboration with U.S.-based software platform firm Palantir Technologies Inc. for launching new services. As of 10:10 a.m., KT's shares traded at 53,900 won, reflecting a 0.37 percent increase from the previous session. Additionally, the mobile carrier declared its intention to distribute cash dividends of 600 won per share.