KT alpha's Q3 operating profit up 1.5%; GMV rises 15.3%

[Financial News] KT alpha's operating profit edged up in the third quarter of this year, buoyed by an expansion in transaction volume in its T-commerce and mobile gift certificate businesses. Revenue declined due to a shift in its product operating model, but overall gross merchandise value (GMV) recorded double-digit growth.
According to the Financial Supervisory Service's electronic disclosure system on the 11th, KT alpha's operating profit for the third quarter of this year was 11.5 billion won, up 1.5% from a year earlier. Revenue for the same period fell 2.6% to 93.8 billion won. Overall GMV rose 15.3% year over year, exceeding the 9.0% growth rate in the first half.
The decline in revenue was due to a shift toward a consignment-based product operating model. Meanwhile, GMV increased in both the T-commerce and mobile gift certificate businesses, expanding actual transaction volume.
GMV at KT Alpha Shopping, KT alpha's T-commerce service, rose 10.2% year over year in the third quarter. This followed efforts to strengthen products and promotions centered on its own online mall under its “mobile first” strategy, which connects TV and mobile. Product offerings targeting Chuseok demand, the introduction of new specially planned programs, and expanded partnership marketing also helped attract customers.
GMV in the mobile gift certificate business increased 19.6% year over year, driven by expanded partnerships with major platforms and rising demand for integrated gift certificates.
In the fourth quarter, KT alpha is pursuing a business transformation based on artificial intelligence (AI) and data. The company plans to expand use of its AI data analytics platform across the organization and enhance Live Talk on KT Alpha Shopping, adding AI-powered notice and response functions to strengthen real-time customer engagement on data-broadcasting channels as well. It will also introduce a solution for Giftishow Biz, its mobile gift certificate service for businesses, to adapt to AI search environments.
KT alpha is also working to strengthen its product competitiveness. KT Alpha Shopping will introduce exclusive fashion brands such as LE TROIS, D.Kim by Kim Seo Ryong, and Superior, while Gifty Show will launch integrated gift certificates that customers can select.
As of the end of the third quarter, KT alpha maintained a debt-free balance sheet and continued its shareholder returns, including a dividend policy with a 30% payout ratio.
“As we continued to reshape the business with a focus on profitability and expanded our mobile presence and sales channels, both businesses achieved double-digit GMV growth,” KT alpha CEO Park Jeong-min said. “To drive growth and take a leap forward next year, we plan to innovate our business structure and take on bold challenges. We began laying the groundwork for this in November. We will get an early start and execute swiftly so that we can deliver results right from the beginning of next year.”
[email protected] Kim Hyun-ji Reporter