KT on track to become a digital platform company















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KT on track to become a digital platform company

KT's AI secretarial department, based in a bakery in Seoul, helps a store owner by taking reservations, in this photo from October 25.  Courtesy of KT
KT’s AI secretarial department, based in a bakery in Seoul, helps a store owner by taking reservations, in this photo from October 25. Courtesy of KT


By Baek Byung-yeul

KT’s business strategy to become a digital platform company, providing media, mobile platform, artificial intelligence (AI) and cloud computing services, brings successful change, driving performance significant benefits.

The telecommunications company unveiled its results for 2021 on Wednesday and 40% of its sales were made in its non-telecom business. The company said its 2021 sales and operating profit were 24.89 trillion won ($20.8 billion) and 1.67 trillion won, respectively, up 4.1 percent and 41.2 percent. % compared to a year ago.

The company aimed to generate an operating profit of more than 1 trillion won in 2022, but hit the target ahead of schedule.

“We achieved our 2022 operating profit target in early 2021 on the back of stable sales growth in the telecommunications sector and the expansion of the business-to-business platform business through our digital transformation effort,” said Kim Young-jin, chief financial officer of KT. , told investors.

Kim added that the company will achieve about 50% of its sales through business-to-business services and digital platform services by 2025, excluding traditional telecommunications, such as wired and wireless telecommunications and the service sectors. Internet services.

The company’s DIGICO B2B division, which oversees cloud computing, AI and Internet data center (IDC) activities for enterprises, generated sales of 2.03 trillion won, up 2.5 percent year-on-year. Among these B2B services, cloud computing and the IDC business recorded double-digit growth of 17.6%.

“In the recent government-led Digital New Deal and Green New Deal projects, KT is the only company in Korea that can provide integrated network, IDC and cloud services,” the CFO said, adding, ” We plan to focus on securing orders in the public sector through the cloud conversion plans of all public institutions.

Sales of the DIGICO B2C division, which oversees pay-TV services and other mobile platform businesses, were up 5.8% year-on-year on the back of expanding mobile pay and media businesses.

Its internet protocol television (IPTV) service saw a 6.1% year-on-year sales increase to retain its top market share position. This increase was possible thanks to the constant increase in the number of subscribers, the company added.
































































































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