The three major domestic mobile carriers (SKT, KT, and LGU+) received their report cards for the first quarter of 2023.

According to the annual revenue for the first quarter of 2023 announced by each company, starting with SKT on the 10th and followed by LGU+ and KT on the 11th, the combined operating profit of the three mobile carriers was 1.2411 trillion won. Although this is a decrease of about 80 billion won compared to last year, the combined total easily surpassed 1 trillion won for the third consecutive year.

Looking at the performance by telecommunications carrier, SKT recorded revenue of 4.3722 trillion won, operating profit of 494.8 billion won, and net profit of 302.5 billion won in the first quarter of 2023 based on consolidated financial statements. These figures represent increases of 2.2% in revenue, 14.4% in operating profit, and 37.3% in net profit, respectively, compared to the same period last year.

SK Broadband (SKB) recorded sales of 1.0615 trillion won, up 3.5% from the same period last year. Operating profit was 76.1 billion won, up 0.1% from the same period last year.

KT recorded consolidated revenue of 6.4437 trillion won in the first quarter of 2023, a 2.6% increase year-on-year, but recorded operating profit of 486.1 billion won, a 22.4% decrease, and net profit of 309.6 billion won, a 32.0% decrease, bringing a bitter smile to the results.

KT explained the decrease in operating profit as being due to “the negative base effect resulting from one-time real estate gains, such as the 74.6 billion won from the sale of the Mapo Solution Center last year, and the cost burden due to inflation.”

LGU+ reported consolidated revenue of 3.5413 trillion won in the first quarter of 2023, up 3.9% year-on-year; operating profit of 260.2 billion won, down 0.4%; and net profit of 155.1 billion won, down 8.9%. LGU+ cited "one-time costs for consumer compensation due to data leaks and DDoS outages, and for strengthening information protection" as the cause.

In addition, the company stated that it will execute 519.2 billion won in CAPEX, a 43.6% increase from the previous year, by focusing on investment in 5G wired and wireless networks, and that it will continue to improve network quality and expand coverage this year, including securing 5G in-building infrastructure and Open RAN technology.

It can be seen that 5G still had an impact on the performance of the three mobile carriers. According to statistics from the Ministry of Science and ICT, as of the end of last March, the total number of 5G subscribers for the three mobile carriers was 29,380,397, with SKT recording 14,147,664 (47.8%), KT 8,881,924 (30%), and LG Uplus 6,350,809 (21.5%).

Based on the sustained upward trend, it is estimated that the number of 5G subscribers has now exceeded 30 million. Meanwhile, 5G, the core business of the three mobile carriers, is still considered a key indicator of revenue, even though the growth rate of their wired and wireless communication businesses has decreased.

The growth of non-telecommunication businesses, into which the three mobile carriers have recently been making full-scale investments, is also by far the most notable.

SKT is implementing its 'AI to Everywhere' strategy to transform into an AI company. Based on wired and wireless telecommunications, SKT recorded revenue of 393.2 billion won from its media business, which includes content, advertising, and commerce, a 10.2% increase year-on-year. Enterprise revenue, centered on data centers and cloud services, also increased by 5.8% to 386.2 billion won. In addition, T Uzoo and E-Friend are maintaining their market presence.

KT demonstrated growth in its B2B platform business and DX-related businesses. KT announced that revenue from its telecommunications business targeting B2B customers (Telco B2B), including corporate internet and corporate calling, grew 4.1% year-on-year. In particular, KT Cloud, marking its first anniversary, recorded 148.7 billion won in revenue in the first quarter.

LGU+ announced that its enterprise infrastructure division recorded a profit of 368.4 billion won, up 1.7% from the same period last year, achieving significant profits in the IDC business. The solution business generated 103.2 billion won in revenue, down 7.2% from the first quarter of last year, but expressed ambition to secure technological capabilities in new B2B businesses such as smart factories and smart mobility.

In addition, LGU+ stated during a conference call that it is actively pursuing the purchase of renewable energy in the second quarter and has formed a task force to build solar power facilities. It announced plans to reduce greenhouse gas emissions by cutting electricity consumption and overhauling data and systems.