Simultaneous Achievement of 1 Million Premium ARPU Subscribers
Accelerating Future Business Through Network Enhancement and AI Platform


KT has simultaneously achieved 1 million premium subscribers across its core wired and wireless businesses, signaling a green light for profitability.

KT announced on the 8th that Q3 2019 consolidated revenue stood at 6.2137 trillion won and operating profit at 312.5 billion won under K-IFRS. Revenue increased 4.5% year-over-year while operating profit declined 15.4%.

A KT official stated, "While operating profit decreased compared to the same period last year due to 5G network investment and marketing costs, it increased 8.4% from the previous quarter, creating a turning point for recovery."

Wireless business revenue declined 0.2% year-over-year, but actual wireless service revenue used by customers reached 1.656 trillion won, up 1.0% from the same period last year, driven by increasing 5G subscribers.

Q3 wireless ARPU (average revenue per subscriber) was 31,912 won, increasing 0.5% from the previous quarter and marking the second consecutive quarter of growth.

Wired business revenue declined 1.5% year-over-year to 1.1682 trillion won, continuing the trend where gigabit internet growth offsets declining landline revenue. Q3 gigabit internet subscribers reached 5.35 million, growing to 60% of total high-speed internet subscribers.

Notably, 1G internet subscribers, the highest-tier gigabit internet service plan, surpassed 1 million users, and affected by the increase in high-value subscribers, KT's standalone high-speed internet revenue increased 1.5% year-over-year.

KT, based on differentiated services in 5G rate plans and distribution channels including customer centers and agencies, secured 640,000 new subscribers in Q3, a 52% increase from the previous quarter, following 420,000 subscribers in Q2, achieving a cumulative 1.06 million 5G subscribers.

Media and content business revenue increased 13.8% year-over-year to 701.3 billion won, with IPTV subscribers reaching 8.23 million in Q3, maintaining the industry's top position. Content business revenue increased 24.1% year-over-year due to growth from group subsidiaries including Genie Music, KTH, and NAS Media.

KT analyzed that standalone IPTV revenue increased 16.1% year-over-year as additional service revenue grew thanks to steady subscriber increases.

Cumulative Q3 CAPEX execution reached 2.0952 trillion won, an 89% increase from last year. As of November, KT's 5G base stations exceeded 63,000 in operation, providing 5G network coverage not only across 85 cities, counties, districts, and administrative divisions nationwide but also at major buildings, airports, and KTX mobile sections.

KT plans to secure 80% coverage of the total population by year-end and significantly expand indoor coverage centered on major buildings with high foot traffic.

Additionally, while broadening the 5G subscriber base, KT plans to focus on future business by leveraging Korea's top-tier AI capabilities.

Recently, KT's artificial intelligence platform Giga Genie surpassed 2 million subscribers and is expanding its business scope to hotels, hospitals, and automobiles. KT plans to showcase innovative business solutions by combining advanced intelligent networks and AI convergence platforms in various industrial sites and workspaces such as smart factories, security, and call centers.

KT CFO Yoon Kyung-geun stated, "In Q3, KT secured premium subscribers through differentiated products and services ahead of the competition in core wired and wireless businesses including 5G and gigabit internet, and achieved stable performance through efficient cost execution. Building on KT's 5G technology and AI platform competitiveness, we will lead the telecommunications and ICT market."