KT's Q1 earnings at 11-year best, readying IPO of digital bank and e-book platforms

[Photo by MK DB]

Korea’s telco major KT Corp. has closed the first quarter at its best earnings in more than 11 years as it reaped fruits off evolving 5G network services for consumers and businesses.

KT disclosed Thursday an operating income of 626.6 billion won ($487.6 million) on a consolidated basis for the first quarter ended March 2022, surging 69.6 percent from previous quarter and 41.1 percent from a year ago. It is the best income since the third quarter 2010.

Revenue came to 6.3 trillion won, down 5.2 percent on quarter but up 4.1 percent on year. Net income rose 7.3 percent on quarter and 39.5 percent on year to 455.4 billion won.

Its shares rose 3.1 percent to 36,500 won on Thursday.

Telecom service revenue rose 6.4 percent on year to 5.6 trillion won on the back of 5G service’s robust growth. Revenue from wireless service to consumers gained 1.9 percent on year to 2,353.5 billion won on expansion in 5G and bundled subscription services. About half of its wireless subscribers are 5G users, topping 6.95 million.

Revenue from broadband service increased 2.6 percent on year while that from landline service fell 6.8 percent.

DIGICO, its media and mobile platform services, for consumers delivered 549.3 billion won in revenue, up 4.7 percent on year. IPTV revenue rose 9.3 percent.

Telecom service for businesses recorded 519.7 billion won in revenue, up 7.1 percent on year, thanks to rising data traffic and demand for high-speed lines. Broadband revenue added 3.7 percent on year, and landline 14.3 percent.

Revenue from DIGICO platform service for businesses expanded 10.5 percent on year to 539.6 billion won on rapid growth of internet data center and artificial intelligence contact center services.

Digital contents creation subsidiaries saw 35.5 percent on-year growth in revenue through aggressive business portfolio expansion.

K Bank, its digital banking unit, recorded 7.5 million users upon adding 330,000 in the first quarter. The internet-only bank’s deposit balance stood at 11.5 trillion won and loan balance at 7.8 trillion won as of the end of March.

BC Card, credit card service provider, reported 7.5 percent on-year growth in revenue as domestic consumption recovered.

KT is prepping to launch integrated financial service together with BC Card and K Bank soon. The company gained regulatory approval to begin the so-called My Data service, which allows customers access all personal financial data managed by government-approved financial institutions.

The telco also has kicked off the process to go public with K Bank and e-book service provider Millie’s Library.

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