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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] KT SkyLife reported a preliminary operating profit of 29 billion won, marking an 81.5% decrease, attributed to increased costs including content investment. However, the company managed to turn around its operating loss due to a net increase in subscribers.
In the first quarter of this year, KT SkyLife disclosed that its consolidated revenue increased by 2.0% year-on-year to 2.544 trillion won, while operating profit plummeted by 81.5% to 29 billion won.
Although the performance is an improvement compared to the operating loss of 261 billion won in the fourth quarter of last year, it falls short when compared to the same period last year. The adjusted operating profit, represented by EBITDA, decreased by 7.9% to 484 billion won.
KT SkyLife attributed the disappointing results to significantly increased operating costs due to investments in SkyTV content. In the first quarter alone, the company spent 389 billion won on facility investments (CAPEX), a 20.7% increase compared to the same period last year. Additionally, operating expenses rose by 7.5% to 2.515 trillion won, primarily due to increases in broadcasting development funds and program usage fees, which negatively impacted overall profitability.
However, the total number of subscribers increased to 5.82 million, up by approximately 10,000 subscribers compared to the previous quarter, driven by growth in internet and mobile subscribers. The combination rate of skyTV among new internet and mobile subscribers reached 35%.
KT SkyLife aims to maintain its investment focus on content while striving for efficient cost management throughout the year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
