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[Alpha Biz=(Chicago) Reporter Kim Jisun] KT Skylife said its operating profit plunged by 80% year-on-year due to increased costs due to increased investment in original content. It was also said that content production costs will be significantly reduced this year compared to the previous year.
KT Skylife announced on the 5th that its annual sales and operating profit were 1.387 trillion won and 14.24 billion won last year. Sales rose 0.4% year-on-year, but operating profit fell 77.5%.
In the fourth quarter of last year, sales amounted to 262.159 billion won and operating losses amounted to 26.145 billion won. Sales fell 3.3% year-on-year, and operating profit turned into a deficit.
KT Skylife explained that the reason for the decline in operating profit in the fourth quarter is because of the concentration of costs in the fourth quarter every year. In particular, this year's operating profit has decreased significantly as the cost concentration has increased more than in previous years due to the reflection of the small amount of negotiations for program usage fees.
In the case of overall performance last year, program fees were applied retroactively as channel negotiations were completed, and profits decreased as costs increased due to the expansion of SkyTV's original content investment.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
