KT Corporation (NYSE:KT) Q3 2022 Earnings Call Transcript

So KT, before the end of the year, we are planning to release a multi-slicing services, basically, that slices up the network depending on the destination IP, thereby providing a specialized feature on a standalone SA basis. So we are, at this point, working on developing and releasing an enterprise-only SA services. And then you also asked about what our outlook is in terms of the possible cost inflation, especially in areas of content and B2B business. KT is currently expanding its portfolio around content and B2B, DX, but we have a very clear and distinct differentiation compared to our peers and that we engage in our business that is supported and underpinned by the platform, the physical network, as well as our sales capabilities. It is our view that we see such digital transformation and content.

The industry itself is reporting a structural growth as we see rise in the demand from businesses for digital DX services, as well as increasing demand for content. And recently against the overall inflationary backdrop, yes, there is a pressure that is working to push up the costs. But we are not focusing on competing in a small slice of a market. We are focusing on expanding the market pie itself driven by the overall growth and market demand. So, we believe that there is a quite significant potential from the top line side. So even if there is a slight uptick in the costs, we plan to respond to that with growing our top line revenue, which will eventually can translate into improvement in profit as well. And also just to elaborate a little more, many businesses these days are facing upward pressure on their cost structure.

And these companies in order to offset that rise in costs are looking to adopt digital transformation. So, we believe that, that will continuously drive DX-related demand. And KT, if we could really leverage this ICT capability that we actually have, we believe that we would be able to additionally generate demand.

Operator: Currently, there are no participants with questions. We will wait for a second until there is another question.

Kim Young Jin: With no further questions, we would like to now close the Q&A session. Once again, thank you very much for joining us this afternoon. This brings us to the end of KT’s Q3 2022 earnings presentation. Thank you.