Seoul: South Korea’s second-largest mobile carrier, KT Corp., has reported impressive earnings for the second quarter, with significant growth in its core business sectors.
According to Yonhap News Agency, KT Corp.’s net profit for the April-June period reached 733.3 billion won (US$527.6 million), marking a 78.6 percent increase from the previous year. This figure exceeded market expectations, as analysts had predicted an average net profit of 683.7 billion won, based on a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Operating profit for the quarter witnessed a substantial rise of 105.4 percent year-on-year, totaling 1.01 trillion won. The company’s revenue also saw a 13.5 percent increase, reaching 7.42 trillion won. KT attributed its strong performance to its core mobile business, which experienced a 1.6 percent sales increase driven by growth in fifth-generation (5G) subscriptions, with 5G users making up 79.5 percent of total mobile subscriptions.
The fixed-line business also contributed to the positive results, with a 1.4 percent rise in sales due to an increase in internet service users and higher sales in media and internet protocol television (IPTV) services. The number of IPTV subscribers rose to 9.49 million during the second quarter, compared to 9.42 million a year ago.
KT Corp. announced its ongoing efforts to transform into an “AICT” company, integrating artificial intelligence (AI), telecommunications, and information and communications technology (ICT). As of 9:50 a.m., KT shares were trading at 54,150 won, up 0.84 percent from the previous session. The company’s second-quarter report was released while the market was open.