KT Alpha posts W11.5b operating profit in Q3, up 1.5% on year

KT Alpha posted balanced growth in both transaction volume and earnings in the third quarter, driven by a push to strengthen its own shopping platform under a "mobile-first" strategy.

The company said Thursday its third-quarter operating profit rose 1.5 percent on-year to 11.5 billion won ($8.56 million). Total transaction volume — a measure of actual trading activity — grew 15.3 percent from the same period last year, accelerating from the 9.0 percent growth recorded in the first half. Sales, however, slipped 2.6 percent to 93.8 billion won, reflecting a shift toward consignment-based product operations.

By business segment, transaction volume at KT Alpha Shopping, the company's T-commerce service, rose 10.2 percent on-year in the third quarter. The company said concentrating products and promotions on its own platform in line with its mobile-first strategy proved effective. Efforts to meet Chuseok season demand, the launch of new programming and expanded affiliate marketing also drew in new customers.

The mobile gift voucher service also saw third-quarter transaction volume climb 19.6 percent on-year, driven by stronger partnerships with major platforms and consistently growing demand for integrated gift vouchers.

For the fourth quarter, KT Alpha said it will accelerate its transformation into an AI- and data-driven "connected commerce company" under its management strategy "SHIFT 2026," with a focus on expanding its AI data analytics platform company-wide to improve operational efficiency.

KT Alpha Shopping plans to upgrade "Live Talk," a real-time communication feature for data broadcasting equipped with AI announcement and response functions. Its corporate mobile gift voucher service, Giftishow Biz, will introduce solutions tailored to AI-driven search environments.

The company also plans to sharpen its product lineup. KT Alpha Shopping will launch exclusive fashion brands including Le Touet, De Kim by Kim Seo-ryong and Superior. Giftishow will roll out customer-choice integrated gift vouchers aimed at corporate clients.

KT Alpha said it will also strengthen shareholder returns. The company operates a dividend policy with a 30 percent payout ratio, supported by a debt-free balance sheet, and plans to pursue both future growth investment and stable shareholder returns to enhance corporate value.

Chief Executive Officer Park Jung-min said the company achieved double-digit transaction volume growth in both businesses through mobile migration and expanded sales channels while continuing to improve its profitability profile. "We have begun laying the groundwork for structural business innovation and bold new challenges to drive growth and a leap forward next year," Park added. "We will move quickly to deliver results from early next year."