KT - Q1 2022
May 12, 2022
Transcript
Operator (participant)
안녕하십니까? 오늘 참석해주신 여러분께 감사의 말씀을 드리며 지금부터 KT 2022년 1분기 실적발표 컨퍼런스 콜을 시작하겠습니다. 순서는 KT 지승훈 IRO의 안내 말씀이 있은 후 김영진 CFO의 실적발표 및 질의응답 시간을 가질 예정입니다. 질문을 하실 분들은 전화기 버튼의 별표와 1번을 눌러주시기 바랍니다. KT의 발표 후 별표와 1번을 누르신 순서대로 발언 기회를 드리겠습니다. 그럼 지금부터 KT 지승훈 IRO의 안내 말씀이 있겠습니다.
Speaker 4
Good morning and good evening. Thank you all for joining this conference call and now we will begin the conference call for 2022 first quarter earnings results by KT. We would like to have welcoming remarks from Mr. Seung-Hoon Chi, KT IRO, and then Mr. Young-Jin Kim, CFO will present earnings results and entertain your questions. This conference will start with the presentation, followed by a Q&A session. If you have a question, please press star one. That is star and one on your phone during the Q&A.
Now we'd like to turn the conference over to Mr. Seung-Hoon Chi, KT IRO.
Seung-Hoon Chi (IRO)
안녕하십니까? KT IRO 지승훈입니다. KT 2022년 1분기 실적발표를 시작하겠습니다. 본 컨퍼런스 콜은 당사 홈페이지에서 웹캐스팅으로 제공되고 있으며, 실적발표 슬라이드와 함께 설명을 청취하실 수 있습니다.
Speaker 4
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.
Seung-Hoon Chi (IRO)
금일 발표하는 내용은 외부 감사인의 검토 전 K-IFRS 기준으로 작성된 추정 재무실적 및 영업 성과를 포함하고 있습니다. 확정된 과거 자료 이외의 모든 재무 및 경영 성과 자료에 대해서는 정확성과 완벽성을 보장할 수 없으며, 향후 변경될 수 있음을 양지해 주시기 바랍니다.
Speaker 4
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 and 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.
Seung-Hoon Chi (IRO)
그럼 당사 김영진 CFO의 인사 말씀과 함께 2022년 1분기 실적에 대한 설명이 있겠습니다.
Speaker 4
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 (CFO)
안녕하십니까? KT 재무실장 김영진입니다. 먼저 KT의 2021년 1분기 주요 성과를 설명드리겠습니다.
Speaker 4
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.
Young-Jin Kim (CFO)
2022년 1분기는 디지코 B2B 사업 본격화와 더불어 견조한 텔코 사업 성장 지속, 제휴 협력을 통한 성장 포트폴리오 강화로 영업수익은 6조 2,777억 원으로 전년 동기 대비 4.1% 성장하였으며, 특히 서비스 수익은 전년 동기 대비 6.4% 증가하였습니다.
Speaker 4
In the first quarter of 2022, operating revenue grew 4.1% YOY and stood at KRW 6,277.7 billion. Thanks to the full-fledged business expansion of the digital B2B business as a digital platform company, the continued robust growth of the telco business and a stronger growth portfolio driven by partnerships and cooperation. The 6.4% YOY revenue growth of the service revenue was especially notable.
Young-Jin Kim (CFO)
디지코 중심 매출 성장과 함께 효율적인 비용 집행이 더해져 영업이익은 전년 동기 대비 41.1% 성장한 6,266억 원을 기록하였습니다.
Speaker 4
Operating income jumped 41.1% YOY to reach KRW 626.6 billion, supported by revenue growth driven by digital and efficient cost control.
Young-Jin Kim (CFO)
별도 기준으로도 매출은 전년 동기 대비 0.7% 증가한 4조 6,084억 원, 영업이익은 전년 동기 대비 17.5% 증가한 4,299억 원을 달성하였습니다.
Speaker 4
Even on a standalone basis, revenue increased by 0.7% YOY to report KRW 4,608.4 billion, and operating income grew by 17.5% YOY to reach KRW 429.9 billion.
Young-Jin Kim (CFO)
KT는 대한민국 DX 전환 수요를 리딩하고 국내 1등 사업자의 제휴 협력 추진으로 성장 역량을 확보하며 디지코 성공 방정식을 완성하고 있습니다.
Speaker 4
KT is successfully achieving the digital success formula by leading Korea's digital transformation or DX demand, and actively cooperating and partnering with Korea's number one business operators to secure growth momentum.
Young-Jin Kim (CFO)
B2B는 국내 최대 유무선 인프라와 AI, 빅데이터, 클라우드 등 DX 핵심 기술과 다양한 기업 상품을 기반으로 산업별 맞춤 서비스를 제공하고 있습니다. 이를 기반으로 디지코 B2B 사업과 Telco B2B 사업은 전년 동기 대비 각각 10.5%, 7.1% 성장하였습니다.
Speaker 4
For B2B, KT offers customized services to different industries based on Korea's largest mobile and fixed infrastructure. Strengths in core DX technologies, such as AI, big data, and cloud, and a diverse corporate product portfolio, which led to a 10.5% YOY growth for digital B2B and a 7.1% YOY growth for the telco B2B business.
In particular, in Q1, we were able to win orders not only in finance and the public sector, but also in the distribution industry, expanding our reference. A total of KRW 0.9 trillion orders were booked, which is a 59% jump YOY.
The revenue of the cloud and IDC business, the key to digital transformation, grew by 14.7% YOY to continue strong momentum, mainly propelled by the increased sales to large global content providers, KT's preemptive response to new demand, and increased demand from the public cloud sector. On April first, we established a new entity, KT Cloud, to preemptively respond to the cloud IDC market and solidify market leadership. KT is making utmost effort to become Korea's top digital infrastructure company. The telco business is continuing volume and quality growth, mainly driven by premium subscribers. 5G penetration has reached 50%, and wireless service revenue grew by 2.4% YOY. The broadband business revenue also increased by 2.6%, thanks to subscriber growth driven by GiGA Internet.
KT has been cementing leadership in IPTV market as well, which showed a sustained robust growth of 9.3% YOY. Finance and media content, the main growth pillars of KT Group, have engaged in active cooperation and partnerships with industry top brands to lay the foundation to leap forward to become a top-tier player in Korea. Since January, KT and Shinhan Financial Group have been working together to develop cooperative endeavors for the future finance business based on the key strengths of the top players, the two companies who are number one players in the disparate sectors, namely finance and telco. In March, we inked a partnership agreement with CJ ENM, Korea's top content operator, on all-around cooperation in the content business. We are planning to mutually cooperate in various areas, including joint content production, content procurement, and programming.
In particular, the valuation of KT Studio Genie was recognized to be above KRW 1 trillion in just one year since establishment to attract an investment of KRW 100 billion. In case of K Bank, all sales indicators, including number of customers, balance of deposits and loans, grew, leading to higher profit. As of Q1, total number of customers increased by 330,000 since end of last year to reach 7.5 million. As of Q1, the outstanding balance of deposits was KRW 11.5 trillion and KRW 7.8 trillion for loans. I will now run through the 2022 Q1 earnings results. Operating revenue increased by 4.1% YOY and stood at KRW 6,277.7 billion.
Operating income jumped 41.1% YOY to reach KRW 626.6 billion.
Young-Jin Kim (CFO)
순이익은 전년 동기 대비 39.5% 성장하며 4,554억 원을 기록하였습니다. EBITDA는 전년 동기 대비 12.9% 증가한 1조 5,183억 원입니다.
Speaker 4
Net income grew by 39.5% YOY and reported KRW 455.4 billion. EBITDA increased by 12.9% YOY to record KRW 1,518.3 billion.
Young-Jin Kim (CFO)
다음 페이지에서 영업비용에 대해 설명드리겠습니다.
Speaker 4
I will go over the operating expense on the next page.
Young-Jin Kim (CFO)
영업비용은 인건비, 사업경비, 서비스 구입비 등이 증가하면서 전년 동기 대비 1.2% 증가한 5조 6,511억 원입니다. 다음 페이지에서 재무 상태에 대해 설명드리겠습니다.
Speaker 4
Operating expense increased 1.2% YOY and recorded KRW 5,651.1 billion, mainly due to the increase of labor cost, general expense and cost of services provided. I will go over the financial position of the company on the next page.
Young-Jin Kim (CFO)
2022년 3월 말 부채 비율은 124.8%로 전년 동기 대비 6.1%p 증가하였습니다. 순부채 비율은 전년 동기 대비 5.0%p 증가한 37.4%입니다.
Speaker 4
The debt ratio as of March 2022 was 124.8%, which is a 6.1% increase YOY. Net debt ratio rose by 5% and stood at 37.4%.
Young-Jin Kim (CFO)
다음은 투자 지출에 대해 말씀드리겠습니다.
Speaker 4
I will now move on to CapEx.
Young-Jin Kim (CFO)
2022년 1분기 집행한 투자 지출 규모는 3,460억 원입니다. 지금부터는 사업별 실적에 대해 설명드리겠습니다.
Speaker 4
Total CapEx expenditures in 2022 Q1 was KRW 346 billion. I will now go over performance by each business line.
Young-Jin Kim (CFO)
Telco B2C 사업은 무선 수익과 초고속 인터넷 수익의 안정적인 성장으로 전년 동기 대비 1.2% 증가한 2조 3,535억 원입니다.
Speaker 4
The Telco B2C business revenue rose by 1.2% YOY to record KRW 2,353.5 billion, backed by stable wireless and broadband revenue growth.
Young-Jin Kim (CFO)
무선 수익은 5G 가입자의 성장에 힘입어 전년 동기 대비 1.9% 증가한 1조 5,376억 원입니다. 2022년 1분기 말 무선 전체 가입자는 2,306만 명이며, 5G 가입자는 694만 명으로 휴대폰 가입자 대비 50%에 해당합니다.
Speaker 4
The growth of 5G subscribers supported wireless revenue, which increased by 1.9% YOY to reach KRW 1,537.6 billion. As of 2022 Q1, total wireless subscribers amounted 23.06 million. 5G subscribers amounted 6.94 million, which is 50% of our handset subscribers.
Young-Jin Kim (CFO)
초고속 인터넷 수익은 GiGA 인터넷을 중심으로 가입자가 증가하면서 전년 동기 대비 2.6% 성장한 5,911억 원을 기록하였습니다.
Speaker 4
Broadband revenue increased by 2.6% YOY to reach KRW 591.1 billion, which was driven by GiGA Internet subscriber increase.
Young-Jin Kim (CFO)
유선전화 수익은 가정용 가입자가 감소하며 전년 동기 대비 6.8% 줄어든 2,248억 원입니다. 다음은 디지코 B2C 사업입니다.
Speaker 4
Fixed telephony revenue declined by 6.8% YOY to KRW 224.8 billion due to the reduction of residential and household subscribers. Next is the Digico B2C business.
Young-Jin Kim (CFO)
디지코 B2B, B2C 사업은 미디어 사업과 모바일 플랫폼 사업의 성장으로 전년 대비 4.7% 증가한 5,493억 원을 기록하였습니다.
Speaker 4
The Digico B2C business revenue grew 4.7% YOY to record KRW 549.3 billion, thanks to the growth of media and mobile platform businesses.
Young-Jin Kim (CFO)
특히 IPTV 사업은 Kids Land 등을 통해 고객 가치들을 높이며, 가입자 성장과 플랫폼 기반 매출 성장이 지속되며 전년 동기 대비 9.3% 성장하였습니다.
Speaker 4
The 9.3% YOY growth of IPTV is especially notable. Services such as Kids Land enhanced customer value, leading to expansion of subscriber base and platform-based revenue growth.
Young-Jin Kim (CFO)
다음은 Telco B2B 사업입니다.
Speaker 4
Next is the Telco B2B business.
Young-Jin Kim (CFO)
Telco B2B 사업은 기업 데이터와 통신 사업이 모두 고르게 성장하며 전년 대비 7.1% 증가한 5,197억 원입니다.
Speaker 4
The Telco B2B business revenue rose by 7.1% YOY to report KRW 519.7 billion. As balanced growth was witnessed across corporate data and telephony.
Young-Jin Kim (CFO)
기업들의 디지털 전환과 데이터 트래픽 확대에 따른 수요 증가로 기업 인터넷 데이터 매출은 전년 대비 3.7% 증가하였습니다.
Speaker 4
Corporate broadband and data revenue increased by 3.7%, thanks to corporate digital transformation, leading to higher traffic and stronger demand.
Young-Jin Kim (CFO)
기업 통화는 MVNO 시장 성장 흐름의 선제적인 대응과 기업 인터넷 전화의 순증세 지속으로 전년 동기 대비 14.3% 증가하며 고성장세를 지속하고 있습니다.
Speaker 4
Corporate telephony rose by 14.3% YOY, continuing robust growth momentum supported by net growth of corporate internet telephone and by KT preemptively responding to MVNO market trends.
Young-Jin Kim (CFO)
다음은 디지코 B2B 사업입니다.
Speaker 4
I will move on to the digital B2B business.
Young-Jin Kim (CFO)
디지코 B2B 사업은 클라우드 IDC와 AI New Biz 중심으로 전년 대비 10.5% 성장한 5,396억 원입니다. 기업 메시징 수익의 성장에도 불구하고 글로벌 사업 등 구축형 사업의 매출 감소로 인해 Enterprise DX는 전년 동기 대비 0.8% 감소하였습니다.
Speaker 4
Cloud IDC and AI New Biz drove growth of digital B2B, which grew by 10.5% YOY to report KRW 539.6 billion. Enterprise DX revenue decreased by 0.8% YOY due to the decline in revenue of the infrastructure business, which includes global business despite growth of profits generated by corporate messaging.
Young-Jin Kim (CFO)
클라우드 IDC 사업은 공공 금융 클라우드 사업 수주와 IDC 수요 증가에 따른 기존 고객의 업셀링, IDC DBO 사업의 매출 성장으로 매출이 전년 대비 14.7% 증가하는 높은 성장세를 기록했습니다.
Speaker 4
Revenue of cloud IDC business showed strong growth, 14.7% increase YOY, backed by winning orders for cloud projects in the public and financial sectors. Upselling to existing customers against higher demand for IDC and revenue growth of the IDC DBO business.
Young-Jin Kim (CFO)
작년 하반기 본격 런칭한 AICC 사업의 본격적인 매출 성장과 수주 확대와 더불어 스마트 모빌리티, 블록체인 사업 성장이 더해져 AI New Biz 사업은 전년 대비 40.7% 증가하였습니다.
Speaker 4
The AICC business, which was launched in the second half of last year, has started to win orders and show earnest revenue growth. With the additional growth of smart mobility and blockchain businesses, the AI New Biz revenue jumped 40.7% YOY.
Young-Jin Kim (CFO)
다음은 주요 그룹사 실적입니다.
Speaker 4
I will now go over the earnings performance of main subsidiaries.
Young-Jin Kim (CFO)
BC카드 수익은 국내 카드 매입액이 코로나 이전 수준으로 회복하며 전년 대비 7.5% 증가한 9,022억 원을 기록했습니다.
Speaker 4
Revenue of BC Card recorded KRW 902.2 billion, which is a 7.5% YOY increase, thanks to credit card transaction value recovering to pre-COVID levels.
Young-Jin Kim (CFO)
스카이라이프 수익은 MVNO 사업과 인터넷 재판매 확대와 더불어 HCN 인수 효과로 전년 대비 44.2% 증가한 2,408억 원입니다.
Speaker 4
Revenue of KT Skylife jumped 44.2% YOY to reach KRW 240.8 billion, backed by acquisition of HCN on top of the expansion of MVNO and internet resale.
Young-Jin Kim (CFO)
콘텐츠 자회사 수익은 디지털 광고와 T커머스 관련 주요 자회사들의 매출 증가에 더해 KT 시즌, HCN, 밀리의 서재 등의 연결 편입 효과로 전년 대비 35.5% 성장한 2,704억 원을 기록했습니다.
Speaker 4
Revenue of content subsidiaries jumped 35.5% YOY to report KRW 270.4 billion, supported by the effect of consolidation of KT Seezn, HCN and Millie's Library on top of revenue growth of major subsidiaries related to digital advertisement and T-commerce.
Young-Jin Kim (CFO)
KT 에스테이트 수익은 송파 소피텔 런칭과 일상 회복 영향에 따른 호텔 매출 증가와 부동산 일회성 매출이 더해져 전년 대비 큰 폭으로 성장하며 1,505억 원을 기록했습니다.
Speaker 4
KT Estate posted revenue of KRW 150.5 billion, a substantial YOY jump driven by one-off real estate revenue on top of the launch of the Sofitel in Songpa and hotel revenue buoyed by post-pandemic travel demand.
Young-Jin Kim (CFO)
지금까지 KT 2022년 1분기 실적을 말씀드렸습니다.
Speaker 4
We went over the 2022 Q1 performance of KT.
Young-Jin Kim (CFO)
2022년은 디지코 전환을 선언한 지 3년 차로서 더욱 풍성한 디지코 성장 스토리를 만들어 가고 있습니다.
Speaker 4
2022 marks the third year since declaring transformation into digital, and KT is continuously writing a rich digital growth story.
Young-Jin Kim (CFO)
통신 사업에서 수익성 강화와 함께 디지코 B2B 사업의 본격적인 성장으로 가시적인 성과를 창출하도록 하겠습니다.
Speaker 4
In addition to stronger profitability of the telco business, we will be making utmost effort to deliver visible results in the digital B2B business as it starts to show full-fledged growth.
Young-Jin Kim (CFO)
투자자와 애널리스트분들의 더욱 많은 관심과 성원 부탁드립니다. 감사합니다.
Speaker 4
We would like to ask for continued interest and support from our investors and analysts. Thank you.
Young-Jin Kim (CFO)
기타 세부적인 내용은 미리 배포해 드린 실적 발표 자료를 참고해 주시기 바라며, 지금부터 여러분이 궁금해하시는 질문에 대해 답변을 드리는 시간을 갖도록 하겠습니다. 많은 분들께 질문의 기회를 골고루 드리기 위해 질문은 한 분당 두 개 이내로 제한하도록 하겠습니다.
Speaker 4
For more details, please refer to the earnings presentation, which has been previously circulated.
We will now be taking your questions. In order to allow as many Q&A opportunities as possible, we would appreciate only two questions from each participant. Thank you.
Operator (participant)
지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 2번을 눌러주시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내에서 부탁드리겠습니다.
Speaker 4
Now Q&A session will begin. Please press star one, star and one if you have any questions. For cancellation, please press star two, star and two. In order to allow as many Q&A chances as possible within the restricted time, we'd appreciate only two questions per participant.
The first question will be presented by Hoi Jae Kim from Daishin Securities. Please go ahead with your question.
Kim Hoi-Jae (Equity Analyst)
Ne, annyeonghasimnikka. Daishin Securities Kim Hoi-Jae imnida. du gaji jeulmun dreurigetsmida. Seotbanjjen baedangiguyo. Johega baedang jeongchaegi ilesaengeul jeoehan gyeongsangjeogin byolsso danggi sunige 50%로 jeonhidoe isseoseo, mo ibon siljokcheoreom ilke siljeogi gaesandeumyeon jansungbwa haeo baedangi jeungnyuhaneun gudoro algo isseumida. Geunde i jeongchaegi ole baedangkkajiman yuhyang gosiro algo inneunde, nae nyun ihueodo ilreoke baedangi siljeoge yeongdongdweuneun jeongchaegilji, ttoeneun, geu isangeul gidaehal su isseulji gunggeumhaguyo. du banjjaeneun content sanghabindeoyo. Johi Studio Genie-e, original drama-ga olma jeone gonggae daengo algo isseumida. Ole ju yo lain eopeuhaeo jaejak sansu, geurigo, ganeuhasimyeon siljok jeonmangdo butakdurigetsmida. Gamsahamnida.
Speaker 4
Thank you for the opportunity today. My name is Kim Hoi-Jae from Daishin Securities. I have two questions. First is related to dividends. I understand that the dividend policy is 50% of ordinary income and profit, and it excludes one-off items. The dividend is related to the earnings of the company. Like this year, when the earnings are very strong, I believe that we can expect higher dividends for the full year. I also understand that this policy is only valid for this year. Will the dividend policy continue next year as well? Will the dividend be continued to link to the earnings of the company? Second is related to content. I understand that original title has been launched by Studio Genie in this year. What is the lineup of the content titles this year?
What is the time slot for those titles? If possible, can you also provide some guidance on the profitability of the content business?
Young-Jin Kim (CFO)
Ne, Kim Hoi-Jae wiwon nim, jilmun gamsahamnida. Meonjeo sangban-gi, ije naenyeon ihu baedang jeongchaek-e daehayeo seolmyeonghaejusyeotneunde, meonjeo dae-eun deuryeodo hagoessseumnida.
Speaker 4
Thank you for the question. Your first question was regarding to the dividend policy after next year. I will answer that question first.
Young-Jin Kim (CFO)
Uh, malseumhasindaero ichi sen iju ni nyun hoegye nyondo gyeolsansi kkaji hyonjae baedang jeongchaegi jojeong danggi sunigae byeoldo gijuneuro osipuroneun yuji doel gwaegimnida. Hyeonje ichi sen i sam nyunbuteo jeogyeong doel guchejeogin juju hwanun chaegul malseumduriage neuna ajigeun jogeum ireun geo gatsseumida.
Speaker 4
As you know, for the dividend payout for 2022, it will be 50% of net adjusted net income on a standalone basis, and this policy will be maintained until the end of 2022. I think it is a little bit early to communicate the shareholder return policy for 2023.
Young-Jin Kim (CFO)
Uh, dama gago KT baedang iryeogeul dorabomyeon yak osiposeunto sudune baedang seongyang을 gyesok yujihaewasseumyeon, tto gyeongyeongjin-gwa isahoe-neun jiseokjeogin juju hwanun hwakdaereul tonghan juju gachi jaego를 wihaeso nuryeogeul giuryeowasseumida.
Speaker 4
Having said that, historically, KT's dividend payout has been around 50%. The senior management and the board of directors of the company has been continuously working to enhance, the corporate value and shareholder, return policy, and has been continuously supporting shareholder return.
Young-Jin Kim (CFO)
Uh, hangu ichi sen i sam nyun ihue baedang jeongchaeg-eun isahoe-e, ije, jeseo nonihal jaejongimyo, noni gwagyeongeseo jigeum juju nimdeurina chudajabundeure gidae sudun goryeohago, ilreokeseo pongneokge uigyeong cheongchihaeseo gyeoljeonghal gwaegimnida. Ne.
Speaker 4
As for the dividend policy after 2023, the board of directors will be discussing this topic, and we will be considering the expectations and opinions of shareholders and investors to come up with a policy that can meet the expectations of the market.
Ye, du banjjae jeulmun-euneun, ije Studio Genie-e lain eope daeun bubongwa tto hangu siljok jeonmang-e daeun jeulmun-i isusseossseumida.
Your second question was regarding Studio Genie, the lineup for this year, and the guidance for the performance for this year.
Young-Jin Kim (CFO)
Content line eopeun ole-neun han yeolgge i sang, ije, line eopeul hal jaejeongimyo. Hangubteoneun han yeon pyeonggyun isi kke naeeoe jejakhaneungeoreul mogbyoro hago isseumida.
Speaker 4
As for content lineup this year, we are planning to have around more than 10 titles, and from next year onwards, we should have more than 20 titles released a year.
Young-Jin Kim (CFO)
Content lineup gwanlyeohaeseoneun olma jeone bangyeong-i sijak doen, Gu Pilsu-neun Eop-daga jigeum joeun bang-eung-eul ilkihogo itgo, sichyeongyeoldo jeomjeom ollaganeungeoro jigeum boigo isseumida. Joihido gidaereul manhi hago itgoyo. Isanghan Byeonhosa Woo Young-woo radengi, My Secret Partner radengi, ireon sigiro webtoon radengi, ireon joge geomjeungdoen bubundeureul joihga jaejak lineup eul deo hwakbohamyeonseo, joihga ireon bubundeure deo singyeong-eul sseul jaejeongigoyo. Nae nyun kkaji guchejeogin lineupdeureun da hwakboha doeo issneunde, ireoreul hana-hana jigeum sigteomeseo jogeum malseumdreurigeneun jogeum ireun geo gataseo, i jeongdo malseumdreurigesseumida.
Speaker 4
We recently released the original title, There is No Gu Pil-soo, which has been receiving positive reviews, and the viewership for the drama is increasing as well. After that, we have Extraordinary Attorney Woo Young-woo, and also My Secret Partner that is coming up in the lineup. These dramas are based on already verified content like webtoons, so we will be continuously working to enhance the quality of the titles that we release. We already have a confirmed slate for up to next year. I don't think that this is the appropriate event to go over each of those titles that are expected to be released.
Uh,
For the guidance for the performance, of course, in 2022 with strong lineups, we will be generating higher revenue. As for the operating income, we believe that it will turn to profit this year, and we will be continuously working to enhance the value of the company, and we are also thinking of listing IPO of the company in the future as well. Next question, please.
Operator (participant)
The next question will be presented by Seokjun Kim from KB Securities. Please go ahead with your question.
Speaker 4
Good afternoon. My name is Seokjun Kim from KB Securities. First of all, congratulations on the very strong results in the first quarter. I have two questions, one on AI New Biz and the other on IDC Cloud. First on AI New Biz. In the previous call, you mentioned the launch of AICC, and AICC has been receiving attention and making headlines on the press. I would like to understand better your growth strategy for this business, your outlook and guidance for the performance, and if there is anything that has changed regarding the AICC since the previous call. I will be also appreciated if you can share that as well. The second question is related to IDC and cloud. There are more competitors entering the market and therefore, the supply for this service will increase as well.
What is your strategy to sustain growth in this area? Thank you for the questions. I will first answer the question regarding AICC and AI New Biz. Yes. First of all, if we look at the backdrop of the AICC business, KT has the experience of operating the largest customer centers in Korea, and based on this experience, we were able to automate the service, by using that data to input our AI capabilities. This is the backdrop for this AICC service. To go into a little bit more detail, AICC combines the contact center, call center experience with KT's AI capabilities. We are able to offer virtual consultations with customers and analyze the different cases to come up with solutions and provide these solutions in the form of packages that can best suit the needs of the customer.
We can combine the telephony, the messaging, the chatting services, and integrate all of this into a single platform to enhance customer experience for our customers. We believe that the contact CC market size is around KRW 9 trillion and our portion of this market, the AICC portion, is continuously increasing. We have largely three strategic directions for AICC. First, as an infrastructure business, we have been focusing on finance and insurance in the past. We are expanding our presence into the public sector and also the distribution industry as well. We are also planning to launch and operate the subscription business in this sector for small and medium-sized enterprises. We will be combining the AI and the cloud of KT services to create what we call CCaaS.
This will help us diversify our business model and secure a larger number of SMEs as our clients. We have also launched the AI voice secretary, and this has been targeting the smaller mom-and-pop stores and small SMEs. We have been continuously improving our UI to enhance customer experience and secure a larger number of customers. The second question was on how we will be able to sustain the growth of IDC and cloud. You mentioned about the increase of supply and competitors in this market. In the IDC sector, we believe that the corporate demand for digital transformation is continuously increasing. The demand and supply situation in this market, the demand is continuously larger than the supply.
First of all, as to the key strengths of KT in this market, we are the only cloud operator in Korea to be able to combine network, data center and cloud. In 2016, after getting the G-Cloud certification, we have been able to aggressively penetrate the public sector. KT operates 14 IDC centers in Korea, which is the largest in the country. We have been working together with top industry players to better serve our clients. For example, we are cooperating with number one MSP operator, Megazone Cloud, and we are able to leverage their customer base and consulting capabilities and combine that with our stable operation of the cloud services.
To respond to the skyrocketing demand for IDCs in Korea, we are planning to add 100 megawatts so that we can solidify our leadership in this market as the number one player. To flexibly respond to the market changes, in this sector, we are focusing on partnerships and cooperation along with our internal efforts to establish the infrastructure. Next question, please.
Operator (participant)
The next question will be presented by Jaemin Ahn from NH Investment & Securities. Please go ahead with your questions.
Speaker 4
Good afternoon. My name is Jaemin Ahn from NH Investment & Securities. First of all, congratulations and thank you for the very outstanding results in the first quarter. I have a question regarding the marketing expense for the wireless business. We see the marketing expense has stabilized in Q1, and I largely believe that this trend will continue in Q2. Usually in the past, if the expense was lower in the first half, it tends to be higher in the second half. Also, the second half is when the major device makers launch their flagship handsets. In relation to that, I would like to understand your outlook for marketing expense for the year for this wireless business. Thank you for your question.
Your question was on the marketing expense for the full year. Yes. One of the reasons why the marketing expense shows stabilizing trend in Q1 was because the total volume of new wireless openings has declined and there has been some reduction in the amortization and depreciation related to that as well. As for the outlook for the marketing expense for the full year 2022, in light of the market competition and our efforts to efficiently manage cost, we will be working to maintain or slightly reduce the marketing expense compared to the previous year. You, like you mentioned, there can be some flagship device releases in the second half.
Also, the pandemic is coming to an end that can result in higher volume, and there can be some marketing targeting the new premium customers. Overall, we plan to make utmost effort to maintain or limit the growth of marketing expense to be similar or slightly less than last year in light of efforts to stabilize the market overall, and also our efforts to execute cost in an efficient manner.
Currently, there are no participants with questions. We will wait for a second until there is another question.
If there are no more questions, we will conclude the Q&A session. Thank you for your questions and interest in KT. Thank you once again for attending today's earnings call despite your busy schedule. We will conclude the earnings call of KT for the first quarter of 2022.