KT's revenue in the first quarter of this year increased compared to the same period last year, despite the application of new accounting standards. Under the previous accounting standards, first-quarter revenue and operating profit recorded growth in the 4% range compared to the same period last year.

KT announced that it recorded consolidated revenue of 5.7102 trillion won and an operating profit of 397.1 billion won in the first quarter of 2018 (based on K-IFRS 1115). Compared to the same period last year, revenue increased by 1.8%, while operating profit decreased by 4.8%.

As new accounting standards have been applied starting this quarter, the first-quarter figures compiled under the existing accounting standards (sales of 5.8379 trillion won, operating profit of 435.1 billion won) showed an increase of 4.0% in sales and 4.3% in operating profit compared to the same period last year.

When comparing the increase or decrease in sales by business segment in the first quarter with the first quarter of last year under existing accounting standards, sales in the wireless and wired businesses decreased slightly, but sales in media/content and products showed an upward trend.

Despite negative factors such as higher discount rates and increased selections for selective contract plans and fee reductions for vulnerable groups, wireless revenue declined by only 0.9% year-on-year, driven by a net increase of over 300,000 Mobile Network Operator (MNO) subscribers. In particular, as a result of continued differentiated marketing, including premium family bundles and data-based value-added services, the net growth of handset subscribers continued for five consecutive quarters. Compared to the previous quarter, the number of handset subscribers reached 65,000, the highest figure since the third quarter of 2014.

Wired revenue decreased by 3.3% compared to the same period last year. In this quarter as well, the growth of the internet business continued to offset the decline in wired telephone revenue. Internet business revenue recorded 516.7 billion won, a 4.1% increase compared to the same period last year, continuing an upward trend for 11 consecutive quarters since the second quarter of 2015.

The performance of 'Giga Internet' cannot be overlooked in the strong showing of KT's internet business. KT Giga Internet continues to receive favorable reviews from consumers, driven by its overwhelming network competitiveness and differentiated services such as Giga Wi-Fi and Giga LTE. With a net increase of approximately 300,000 subscribers in the first quarter of this year, the network has secured over 4.2 million subscribers as of the end of March, accounting for 49% of KT's total internet subscribers.

Media/content revenue recorded 561.7 billion won, an 8.1% increase year-on-year driven by the expansion of premium IPTV subscribers. In particular, IPTV revenue on a separate basis reached 323.1 billion won, a 15.4% increase year-on-year, leading the revenue growth in the media/content sector.

Financial revenue recorded 832.7 billion won, down 1.7% year-on-year, due to a decline in BC Card revenue resulting from a decrease in China UnionPay card purchases. Revenue from other services increased by 0.6% year-on-year to 537 billion won, driven by strong performance in the Internet Data Center (IDC) and security businesses. Group companies, including BC Card and Skylife, contributed more than 90 billion won to operating profit.

KT expects improved performance in services and platform businesses based on innovative technologies. A representative example in the innovative technology sector is the AI service "GiGA Genie," which achieved 800,000 subscribers in just over 15 months since its launch in late January last year. After pioneering the new market of AI TV, GiGA Genie garnered a positive response by successively releasing new AI devices such as GiGA Genie LTE and the Moomin Kids Phone. With 'GiGA Genie 2', released in the first quarter of this year, receiving favorable reviews, services related to children and English have recently been significantly enhanced.

In addition, KT has been continuously launching new platform-based services in the energy security sector, such as 'Giga Energy Manager' and 'Giga Eyes,' since the second half of last year. Through this, the company is focusing on industrial innovation based on Fourth Industrial Revolution technologies as well as expanding its customer base. Furthermore, to lead the immersive media (VR/AR) market based on its unrivaled 5G network technology and differentiated content capabilities, it launched an 'Urban VR Theme Park' in March in collaboration with GS Retail, and plans to launch a 'Personal Immersive Media Service' in the second half of the year that allows users to experience VR anytime, anywhere using only an HMD, without a PC or smartphone.

“Amidst declining revenue due to telecommunications fee reduction policies, we were able to achieve stable performance by expanding subscribers and improving cost efficiency in core businesses such as wireless,” said KT CFO Yoon Kyung-geun. “This year, along with continuously strengthening competitiveness in core businesses, we will lay the foundation for long-term growth in innovative technology-based services and platform businesses to foster them as new growth engines for the 5G era.”