KT's consolidated operating profit for the second quarter of this year decreased by 14.3% year-on-year to KRW 494 billion.

KT announced in a conference call held on the 9th that it recorded sales of KRW 6.5464 trillion, operating profit of KRW 494 billion, and net profit of KRW 410.5 billion in the second quarter of 2024 on a consolidated basis. Sales were similar to the previous year, and operating profit decreased by 14.3% compared to the same period last year. KT said that this was the result of reflecting costs due to the early conclusion of 'wage negotiations'.

Excluding the cost of KRW 64.4 billion reflecting the results of deposit negotiations, consolidated operating profit decreased by -3.1% year-on-year, while separate operating profit increased by 3.9%.

KT said, “Through balanced growth in B2C and B2B businesses, separate service sales exceeded 4 trillion won for two consecutive quarters.”

KT's 5G subscribers have surpassed 10 million, accounting for 75% of the total. Wireless service revenue grew 2.7% year-on-year due to roaming business and MVNO growth. KT has introduced 10 types of 5G mid-to-low-priced rate plans.

KT's wired business maintained sales at a similar level to the same period last year. Sales increased by 1.0% year-on-year, including an increase in the proportion of 1G speed subscribers among Giga Internet subscribers. KT announced its ambition to lead the AX (AI transformation) of the media industry by unveiling the 'On Device AI Set-top Box' in the second half of this year.

The five major growth businesses, including AICC, IoT, smart mobility, smart space, and energy, achieved a 10.3% sales growth year-on-year based on the growth of new businesses such as AICC. However, sales decreased by 1.0% year-on-year due to the rationalization of low-margin businesses such as solar energy, digital logistics, and healthcare. In particular, the AICC business continues to show double-digit growth due to the increase in demand for subscription-type AICC services, centered on public customers.

KT Cloud saw a 17.1% increase in sales compared to the same period last year. The cloud business saw sales growth due to increased traffic to the Content Delivery Network (CDN). KT said, “We achieved 100% contract renewal for major customers, and IDC achieved double-digit sales growth compared to the previous year due to increased sales centered on global customers and sales of the DBO (Design·Build·Operate) business.”

Meanwhile, KT signed a strategic partnership with Microsoft (MS) last June.

KT is cooperating with MS in all areas of AI, cloud, and IT. Through this agreement, the two companies plan to work together on ▲joint AI/cloud research and development projects ▲development of Korean-style AI/cloud/IT services ▲establishment of an AI/cloud innovation center ▲training of AI/cloud talent, etc.

KT CFO Jang Min said, “KT will improve its business structure and expand all-round cooperation with global IT companies in order to make a full-fledged leap forward as an AICT company,” adding, “We will strive to ensure that the entire KT Group can increase both corporate value and shareholder value through efficient growth.”