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KT Reports Mixed Q4 Results, Eyes Future Growth with AI and DX Initiatives

Amidst a challenging quarter, KT sets sights on AI-led digital transformation and telecommunications innovation for 2024
South Korea
k 030200.KO Mid and Small Cap 2000
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In the latest financial results for the fourth quarter of 2023, KT announced consolidated sales of KRW 6.6984 trillion and an operating profit of KRW 265.6 billion. While sales remained stable year-over-year, showing a slight increase of 1.8%, the operating profit experienced a significant rise of 75.4% compared to the same quarter last year, despite a 17.5% drop from the previous quarter.

For the year 2023, KT achieved consolidated sales of KRW 26.387 trillion, marking a balanced growth across its diverse portfolio, which includes finance, media, content, digital transformation (DX), and real estate sectors. The company’s separate sales saw a growth, recording KRW 18.3714 trillion, with an operating profit of KRW 1.1854 trillion, a modest 1.5% increase from the previous year. However, consolidated operating profit slightly declined by 2.4% to KRW 1.6498 trillion, mainly due to the base effect of one-off profits in 2022.

KT’s commitment to shareholder value was evident in its decision to expand shareholder returns for 2023, utilizing 50% of the net profit from separate financial statements for cash dividends and treasury stock cancellations.

Looking ahead to 2024, KT plans to bolster its telecommunications business amidst global uncertainties, focusing on AI-centered DX capabilities and business innovation. The company aims to navigate the challenging B2C communications market by innovating customer value and seeks growth in B2B sales and profits through strategic improvements and IT innovation.

Despite the pressures, KT’s wireless revenue showed resilience, with a 2.3% increase to KRW 6.8696 trillion, thanks to a diversified range of rate plans and services. Internet revenue also saw an uptick, while the media and corporate services sectors continued to show solid demand and growth.

KT’s investment in AI, notably through its mega AI service ‘Faith’, underscores its strategy to lead in the B2B sector with AI Contact Center, IoT, Smart Mobility, Smart Space, and Energy Business, aiming for more than KRW 27 trillion in consolidated sales and KRW 16 trillion in separate service sales for 2024.

This strategic direction, paired with KT’s ongoing efforts to enhance shareholder value and adapt to a rapidly evolving market landscape, positions the company for sustained growth and innovation in the telecommunications and digital sectors.

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