As of the end of last year, LTE subscribers recorded 12.83 million, accounting for 71.1% of total subscribers.

KT has returned to the '1 trillion won annual operating profit club.' This is the first time in three years since 2012.

KT announced on the 29th that it recorded consolidated revenue of 22.2812 trillion won and an operating profit of 1.2929 trillion won in 2015. Total service revenue increased by 2.4% year-on-year due to growth in all sectors excluding the wired business. Operating profit turned significantly positive compared to the previous year, driven by subscriber and revenue growth resulting from the strengthening of core competitiveness in key businesses, coupled with efforts for structural cost innovation.

The wireless business recorded sales of 7.3707 trillion won. Wireless service revenue grew 3.4% year-on-year, driven by factors such as increased LTE penetration, higher data usage, and the 활성화 (revitalization) of sales for data value-added products like 'data top-up'. Despite a decrease in other revenues, such as the abolition of subscription fees and reductions in interconnection rates, total wireless revenue increased by 0.7% year-on-year.

At the end of last year, LTE subscribers reached 12.83 million, accounting for 71.1% of total subscribers. ARPU in the fourth quarter was 36,491 won, a 0.8% increase from the previous quarter. In particular, amidst accelerating competition in data-based services, KT's wired and wireless gigabit networks and product competitiveness were recognized in the market, leading to continued growth in wireless ARPU.

The wired business recorded sales of 5.1587 trillion won, down 6.9% from the previous year due to the decline in landline telephone revenue. However, Gig Internet is receiving a positive response, with customers recognizing its wide coverage and speeds up to 10 times faster than existing internet, achieving 1.1 million subscribers just over a year and three months after its nationwide commercial launch. With the popularity of gigabit internet driving a rebound in high-speed internet revenue and ARPU for two consecutive quarters starting from the third quarter of 2015, gigabit products are expected to contribute to improving the revenue structure of the wired business in the future.

The wired business decreased by 6.9% compared to the previous year due to the impact of declining landline telephone revenue.
Revenue from the media/content business increased by 10.2% year-on-year to 1.6623 trillion won.

Revenue from the media/content business increased by 10.2% year-on-year to 1.6623 trillion won. In particular, amidst increasingly fierce competition in the pay TV market, IPTV surpassed 6.5 million subscribers, achieving its net growth target from the previous year thanks to content optimized for customer preferences and the preemptive expansion of UHD channels. This year, KT will continue to maintain its leadership in the media/content market by strengthening cooperation with group companies such as Skylife, KTH, KT Music, and Nasmedia.

Revenue from the financial business recorded 3.411 trillion won, up 5.9% year-on-year, driven by strong BC Card sales resulting from increased card usage. Revenue from other services recorded 1.911 trillion won, up 29.5% year-on-year, as IT/solution sales grew significantly due to successful global ICT business orders.

Meanwhile, KT is concentrating its investment spending on Giga infrastructure this year. It plans to expand Giga coverage to 100% within the year, covering apartment complexes nationwide. Furthermore, the company intends to dramatically improve customer perception of KT's technology and services by upgrading Giga Internet, Giga Wi-Fi, and Giga LTE to the next level.

Future growth businesses accelerate performance through 'selection and concentration.' In the five major future convergence fields of smart energy, integrated security, next-generation media, healthcare, and intelligent traffic control, we secure business models capable of rapid expansion and continuously develop new models such as smart farms. The discovered growth business models are integrated with powerful gigabit infrastructure to jointly promote the transition into major platform-based businesses such as O2O, fintech, and IoT.

Strengthen 'Industrial IoT' business and 'Home IoT'
Will unveil home IoT platform 'IoTMakers'

In the IoT sector, KT is expanding 'Industrial IoT' business models that converge with other industries based on intelligent infrastructure such as big data and cloud computing, while simultaneously strengthening 'Home IoT' targeting general consumers. KT's Home IoT aims to go beyond simply controlling devices via mobile devices and continuously launch services that provide significant value to customers, focusing on areas such as family, home, and healthcare. It is also introducing convergence services linked to the Home IoT platform, 'IoTMakers'.

Following the introduction of home IoT-related products such as 'Olleh GiGA IoT Home Fitness' and 'Olleh GiGA IoT Home Cam' last year, KT launched 'Olleh GiGA IoT Home Manager' this year, which protects home safety through digital door locks and the like. In addition, we plan to incorporate IoT into home appliances such as air conditioners with Samsung Electronics during the first quarter.

“Last year, marking the 130th anniversary of telecommunications in Korea, KT succeeded in improving profitability through a clear turnaround in core businesses and structural cost improvements,” said Executive Vice President and CFO Shin Kwang-seok. “This year, we will do our utmost to leap forward as ‘Global No. 1 KT’ by further strengthening the growth and profitability of the telecommunications business based on KT’s unique top-tier technology and services, and by generating results in future growth businesses.”