KT Corporation (NYSE:KT) Q1 2022 Earnings Conference Call May 12, 2022 2:00 AM ET
Company Participants
Seung Hoon Chi - Investor Relations Officer
Young Jin Kim - Chief Financial Officer
Conference Call Participants
Hoi Jae Kim - Daishin Securities
Joonsop Kim - KB Securities
Jae-Min Ahn - NH Investment & Securities
Seung Hoon Chi
Good afternoon. I am Seung-Hoon Chi, IRO of KT. I would like to begin KT's 2022 Q1 earnings presentation. For your information, this earnings release call is being webcast live on our website, and you can follow the slides as you listen to the call.
Before we begin, please note that today's presentation includes estimates of financial and operating results, which have been prepared in accordance to K-IFRS standards that have not yet been reviewed by an outside director, an outside auditor. Therefore, other than confirmed historical data, we cannot guarantee the accuracy and completeness of financial and business information. Please be reminded that these figures are subject to change.
With that, I would now like to invite our CFO, Mr. Young-Jin Kim, for his remarks and presentation on the business performance of KT in the first quarter of 2022.
Young Jin Kim
Good afternoon. I am Young-Jin Kim, CFO of KT. I will first go over the key performance highlights for the first quarter of 2022. In the first quarter of 2022, operating revenue grew 4.1% Y-o-Y and stood at KRW6,277.7 billion. Thanks to the full-fledged business expansion of the DIGICO B2B business as a digital platform company. The continued robust growth of the Telco business and a stronger growth portfolio, driven by partnerships and co-operation. The 6.4% Y-o-Y revenue growth of the service revenue was especially notable.
Operating income jumped 41.1% Y-o-Y to reach KRW626.6 billion, supported by revenue growth driven by DIGICO and efficient cost control.
Even on a standalone basis, revenue increased by 0.7% Y-o-Y to report KRW4,608.4 billion and operating income grew by 17.5% Y-o-Y to reach KRW429.9 billion
KT is successfully achieving the DIGICO success formula by leading Korea's digital transformation or DX demand and actively cooperating and partnering with Korea's #1 business operators to secure growth momentum.
For B2B, KT offers customized services to different industries based on Korea's largest mobile and fixed infrastructure, strength in core DX technologies such as AI, big data and cloud, and our diverse corporate product portfolio, which led to a 10.5% Y-o-Y growth for DIGICO B2B and a 7.1% Y-o-Y growth for the Telco B2B business.