KT has announced record-high revenue since its listing, but is facing challenges at the start of the year due to subscriber losses and management disruptions.
KT, in a recent announcement, reported its highest revenue since going public, with Q4 consolidated revenue reaching 6.845 trillion won and an operating profit of 227.3 billion won. This performance showcases a significant annual growth, with total revenue for 2023 amounting to 28.2442 trillion won, representing a 6.9% increase, and operating profit increased by 205% year-on-year. A key factor contributing to this growth was income from real estate development in the Gangbuk region, and the wireless segment benefited from competitors' well-publicized issues, allowing for a stable influx of new subscribers.
Despite this positive financial outlook, KT is facing internal management disturbances early in the year, primarily due to a shake-up in its executive leadership. Current CEO Kim Young-seob and nominated successor Park Yoon-young are reportedly not cooperating effectively, which has delayed the usual October organizational reorganization and executive appointments. Additionally, KT suffered a net loss of approximately 240,000 subscribers during a penalty waiver period associated with a minor payment accident earlier this year, which is compounded by a substantial 450 billion won compensation program impacting their Q2 performance. The challenges of internal management could hinder KT's ability to capitalize on its recent revenue growth and maintain operational stability in the face of ongoing organizational changes.
