KT Corp (KT) Q3 2024 Earnings Call Highlights: Strong Operating Income Growth Amid Revenue ...

In This Article:

  • Total Consolidated Revenue: KRW 6 trillion 654.6 billion, slight decrease year-over-year.

  • Separate Revenue: Increased by 2.0% to KRW 4 trillion 765 billion.

  • Consolidated Operating Income: Increased by 44.2% year-over-year to KRW 464.1 billion.

  • Net Income: Rose by 32.9% to KRW 383.1 billion.

  • EBITDA: Increased by 13.4% to KRW 1 trillion 428.1 billion.

  • Operating Expense: Decreased by 2.9% year-over-year to KRW 6 trillion 190.5 billion.

  • Debt Ratio: 122.8% as of September 2024.

  • Net Debt Ratio: Decreased by 8.2 percentage points year-over-year to 30.3%.

  • Cumulative CapEx: KRW 2 trillion 33.1 billion on a separate basis.

  • Wireless Revenue: Increased by 1.9% year-over-year to KRW 1 trillion 740.4 billion.

  • Broadband Revenue: Grew by 0.4% year-over-year to KRW 618.5 billion.

  • Media Business Revenue: Decreased by 1.2% year-over-year.

  • Home Telephone Revenue: Decreased by 7.6% to KRW 172.2 billion.

  • B2B Service Revenue: Grew by 2.5% year-over-year.

  • BC Card Revenue: Decreased by 6.5% year-over-year to KRW 931.4 billion.

  • Skylife Revenue: Declined by 1.4% to KRW 256.9 billion year-over-year.

  • KT Cloud Revenue: Grew by 6.8% year-over-year.

  • KT Estate Revenue: Increased by 3.6% year-over-year.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • KT Corp (NYSE:KT) has set a strategic direction to transform into an ACIT company, aiming for sustainable growth by innovating core businesses and expanding customized offerings.

  • The company has entered a strategic partnership with Microsoft to collaborate on AI and cloud services, including the development of a Korean AI cloud service.

  • KT Corp (NYSE:KT) reported a significant increase in operating income, with a 44.2% year-over-year growth, driven by profitability enhancements in core businesses.

  • The company announced a shareholder return program, including a share buyback and cancellation plan worth KRW1.1 trillion, aiming to boost shareholder value.

  • KT Corp (NYSE:KT) is experiencing growth in its cloud and real estate businesses, with cloud revenue increasing by 6.8% year-over-year and real estate revenue growing by 3.6%.

Negative Points

  • KT Corp (NYSE:KT) reported a slight decrease in total consolidated revenue due to weak performance in its content subsidiary.

  • The media business faced challenges with a decline in PV and advertising revenue, resulting in a 1.2% year-over-year revenue decrease.

  • Home telephone revenue decreased by 7.6%, indicating a decline in traditional telecommunication services.

  • The content subsidiary experienced an 18.3% year-over-year decline in revenue due to a shrinking market.

  • BC Card, a major subsidiary, posted a 6.5% decrease in revenue year-over-year, mainly due to a decline in credit card sales.

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