Slide 1: KT 1Q14 Earnings Release
KT 1Q14 Earnings Release Investor Relations 2014. 04. 30
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by KT Corp. (“the Company”). This presentation contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No
Slide 3: Contents
Contents 1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix
Slide 4: Financial Highlights: Income Statement
K-IFRS / Consolidated 1-1 Financial Highlights Income Statement Operating revenue 5,846.1bn (YoY) -4.2%/(QoQ) -5.9% Service revenue 4,858.7bn (YoY) -1.7%/(QoQ) -3.4% Merchandise revenue 987.4bn (YoY) -15.1%/(QoQ) -16.7% Operating income 152.0bn (YoY) -58.6%/(QoQ) TB Net loss 41.0bn (YoY) TR/(QoQ) RR
Slide 5: Financial Highlights: Major Subsidiaries
K-IFRS / Consolidated 1-2 Financial Highlights Major Subsidiaries Operating Revenue Operating Profit Consolidated from 4Q11 (KT’s share : 69.54%) 804.4 787.0 740.7 55.0 49.4 20.9 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 Consolidated from 1Q11 (KT’s share : 49.99%) 164.0 158.1 154.4 31.6 32.5 22.1 1Q13 4Q13 1Q1
Slide 6: Financial Highlights: Operating Revenue
K-IFRS / Consolidated 1-3 Financial Highlights Operating Revenue 1Q14 Operating revenue 5,846.1bn (YoY) -4.2%/(QoQ) -5.9% Subscriber and mobile ARPU growth led wireless revenue to increase (YoY) +1.5%/(QoQ) +1.7% Wireline revenue fell mainly due to Telephony revenue decline (YoY) -6.7%/(QoQ) -3.6% M
Slide 7: Financial Highlights: Operating Expenses
K-IFRS / Consolidated 1-4 Financial Highlights Operating Expenses 1Q14 Operating expenses 5,694.0bn (YoY) -0.8%/(QoQ) -11.0% Cost of service provided fell due to decreased costs in real estate development cost (YoY) -11.7%/(QoQ) -30.7% Intense wireless marketing early this year caused selling expens
Slide 8: Financial Highlights: Financial Position
K-IFRS / Consolidated 1-5 Financial Highlights Financial Position Debt Ratio Liability to Equity : 173.3% Net Debt to Equity : 79.8% Debt Position Total Debt : 11,756.5bn Net Debt : 10,061.8bn Net debt ratio at 79.8%, increased by 6.7%p QoQ (Unit: KRW bn) 1Q14 1Q13 YoY 1Q14 4Q13 QoQ Assets 34,440.2
Slide 9: Financial Highlights: CAPEX
K-IFRS / KT Separate 1-6 Financial Highlights CAPEX (Unit: KRW bn) Total CAPEX Investments for wideband LTE and network advancement to enhance core competency 1Q14 : 357.2bn (YoY) -31.5%/(QoQ) -75.8% FY2014 Guidance : KRW 2.7tn Wireless CAPEX 1Q14 : 177.7bn FY2014 Guidance : KRW 1.0tn Wireline CAPEX
Slide 10: Business Overview
1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix
Slide 11: Business Overview: Wireless
K-IFRS / Consolidated 2-1 Business Overview Wireless Wireless service revenue increased by 1.5% YoY as LTE subscriber expansion resulted from ARPU growth Wireless ARPU was recorded at KRW 32,902, representing 5.7% YoY (Appendix 4-3) LTE subscribers stand at 8.63m as of 1Q14, representing 52.4% of to
Slide 12: Business Overview: Wireline
K-IFRS / Consolidated 2-2 Business Overview Wireline Telephony revenue declined, due to line loss and MOU decrease, caused total Wireline revenue to fall 6.7% YoY Broadband revenue rose 2.3% YoY as bundling discounts reduced Stabilize wireline revenue decline through continuous expansion of broadban
Slide 13: Business Overview: Media / Contents
K-IFRS / Consolidated 2-3 Business Overview Media / Contents Expansion of KT Group Media subscribers led to 17.7% YoY revenue growth KT IPTV media subscribers stands at 5.16m, with net gain of 190k in 1Q14 OTV : 2.89m OTS : 2.27m IPTV targets for net gain of 800k subscriber base in 2014 Strengthen m
Slide 14: Business Overview: Finance / Rental
K-IFRS / Consolidated 2-4 Business Overview Finance / Rental Finance/Rental revenue BC Card revenue increased by 6.2% YoY, recording 787.0bn KT Rental revenue increased by 20.0% YoY, recording 232.9bn Other Services revenue Revenue dropped 30.7% YoY due to decline in real estate development revenue
Slide 15: Q&A
1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix
Slide 16: Appendix
1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix
Slide 17: K-IFRS Quarterly Income Statements
4-1 K-IFRS Quarterly Income Statements Consolidated I/S 1Q13 2Q13 3Q13 4Q13 1Q14 Operating revenue 6,104.5 5,757.0 5,734.6 6,214.5 5,846.1 Service Revenue 4,941.2 4,938.2 4,935.0 5,029.8 4,858.7 Wireless 1,756.6 1,752.2 1,713.8 1,753.9 1,783.4 Fixed line 1,521.9 1,507.7 1,462.4 1,473.4 1,420.1 Media
Slide 18: K-IFRS Statement of Financial Position
4-2 K-IFRS Statement of Financial Position (Unit: KRW bn) Consolidated 1Q13 2Q13 3Q13 4Q13 1Q14 Asset 34,074.9 33,490.3 34,127.2 34,846.5 34,440.2 Current assets 10,546.3 10,108.2 10,057.1 9,968.4 10,133.7 Cash &cash equivalents 1,492.5 1,881.6 2,033.1 2,070.9 1,694.8 Trade & other rec 4,213.7 4,080
Slide 19: Subscribers (KT only)
4-3 Subscribers (KT only) Wireless 1Q13 2Q13 3Q13 4Q13 1Q14 QoQ YoY Total Wireless Subscribers 17,371 17,354 17,205 17,300 17,293 0.0% -0.4% 3G + LTE 16,443 16,439 16,325 16,454 16,473 0.1% 0.2% WiBro 928 915 880 846 820 -3.0% -11.7% Mobile Subscribers (*1,000) Gross addition 1,273 1,224 1,080 1,404
Slide 20: Thank you
Thank you