Kt Corporation · KRX:030200

Kt — Q1 2018 Earnings Presentation

21 slides from Kt's earnings presentation, May 3, 2018

  1. Slide 1: KT '18 1Q Earnings Release

    Global No.1 KT KT ‘18 1Q Earnings Release 2018.05.03 | Investor Relations

  2. 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 pr

  3. Slide 3: Contents

    Contents 1 181Q Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  4. Slide 4: 1Q18 Highlight

    Contents 1 181Q Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  5. Slide 5: 1Q18 Highlight

    1 181Q Highlight Growth sustained on qualitative subscribers expansion despite wireless tariff cuts Long term growth momentum secured for 5G on strengthened smart energy, security, AI and other platform business Qualitative expansion on strengthened bundling & GiGA supremacy - MNO net adds of 300k a

  6. Slide 6: Financial Highlights

    Contents 1 181Q Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  7. Slide 7: Financial Highlights: Income Statement

    2-1 Financial Highlights Income Statement (Unit: KRW bn) â–¡ Operating Revenue 1Q17* 4Q17* 1Q18* QoQ YoY 1Q18 Diff KRW 5.8tn, (YoY) +4.0% Operating Revenue 5,611.7 6,106.6 5,837.9 -4.4% 4.0% 5,710.2 -127.7 Service Revenue Servicerevenue 4,948.5 5,058.2 4,921.7 -2.7% -0.5% 4,863.6 -58.1 KRW 4.9tn, (Y

  8. Slide 8: Financial Highlights: Operating Expenses

    K-IFRS / Consolidated 2-2 Financial Highlights Operating Expenses (Unit: KRW bn) â–¡ Operating Expenses 1Q17* 4Q17* 1Q18* QoQ YoY 1Q18 Diff KRW 5.4tn, (YoY) +4.0% Operating Expense 5,194.7 5,972.8 5,402.7 -9.5% 4.0% 5,313.1 -89.7 Labor Cost Laborcost 869.8 978.0 923.5 -5.6% 6.2% 922.1 -1.4 KRW 923.5

  9. Slide 9: Financial Highlights: Financial Position

    2-3 Financial Highlights Financial Position (Unit: KRW bn) Equity increase on IFRS15 1Q17* 4Q17* 18.01.01 1Q18 QoQ YoY initial application (Cumulative impact reflected Assets 30,102.6 29,580.6 30,934.7 30,467.8 3.0% 1.2% Cash & cash Equivalents 2,002.1 1,928.2 1,928.2 1,777.5 -7.8% -11.2% in Jan 1st

  10. Slide 10: Financial Highlights: CAPEX

    2-4 Financial Highlights CAPEX (Unit: KRW bn) 18.1Q CAPEX Access 3,313 Backbone KRW 237.0bn executed B2B 10.3% executed as of 181Q 736 2,514 2,397 CAPEX Breakdown 2,359 2,250 2,300 241 330 Access Network : KRW 128.0bn 227 258 259 311 466 362 394 Backbone Network : KRW 39.0bn 517 298 402 KRW 41. 428

  11. Slide 11: Business Overviews

    Contents 1 181Q Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  12. Slide 12: Business Overview: Wireless

    3-1 Business Overview Wireless (Unit: KRW bn) Wireless down by 0.9% YoY 1Q17* 4Q17* 1Q18* QoQ YoY 1Q18 Diff Revenue decline on increased Wireless 1,793.9 1,811.4 1,777.9 -1.8% -0.9% 1,740.8 -37.1 take-up rate of selective tariff discount and uplifted tariff Service 1,667.0 1,699.9 1,660.2 -2.3% -0.4

  13. Slide 13: Business Overview: Wireline

    3-2 Business Overview Wireline (Unit: KRW bn) Wireline down by 3.3% YoY 1Q17*4Q17*1Q18*QoQ YoY 1Q18Diff Wireline 1,254.31,202.61,212.40.8%-3.3%1,198.8-13.6 Telephony Telephony 489.8431.0437.61.5%-10.7%436.9-0.8 Revenue down by 10.7% YoY on Broadband496.2512.0516.70.9%4.1%503.9-12.8 cord-cutting and

  14. Slide 14: Business Overview: Media / Contents

    3-3 Business Overview Media / Contents (Unit: KRW bn) Media/Contents up by 8.1% YoY 1Q17*4Q17*1Q18*QoQ YoY 1Q18Diff Media/Contents 519.7 584.8561.7-3.9%8.1%554.2-7.4 Media 424.3472.3461.5-2.3%8.8%454.3-7.2 Media Contents 95.4112.4100.2-10.9%5.1%99.9-0.2 Media revenue up by 8.8% YoY on high quality s

  15. Slide 15: Business Overview: Finance and others

    3-4 Business Overview Finance and others (Unit: KRW bn) Finance, (YoY) -1.7% 1Q17*4Q17*1Q18*QoQ YoY 1Q18Diff Finance revenue declined on Finance 847.0892.8832.7-6.7%-1.7%832.70.0 decreased ‘Union-Pay’ card transactions Other Service 533.7566.6537.0-5.2%0.6%537.10.0 IT/Solution 212.4 237.0235.5-0.6%1

  16. Slide 16: Q&A

    Contents 1 181Q Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  17. Slide 17: Appendix

    Contents 1 181Q Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  18. Slide 18: K-IFRS Income Statement (Consolidated)

    5-1 K-IFRS Income Statement Consolidated 1Q 17* 2Q 17*3Q 17*4Q 17*1Q 18*1Q 18 Operating revenue 5,611.7 5,842.55,826.66,106.65,837.95,710.2 Service Revenue 4,948.5 5,069.15,047.25,058.24,921.74,863.6 Wireless 1,793.9 1,781.41,816.61,811.41,777.91,740.8 Fixed line 1,254.3 1,226.11,218.01,202.61,212.4

  19. Slide 19: K-IFRS Balance Sheet (Consolidated)

    Consolidated 1Q 17* 2Q 17*3Q 17*4Q 17*1Q 18 Asset 30,102.6 27,825.529,373.029,580.630,467.8 Current assets 9,858.1 7,592.89,354.19,522.110,928.3 Cash & cash equi. 2,002.1 1,656.52,168.61,928.21,777.5 Trade & other rec 3,196.7 3,384.93,440.83,555.93,486.4 Inventories 499.0 420.0346.7457.7716.0 Other

  20. Slide 20: Subscribers (Separate): Wireless

    5-3 Subscribers(Separate) Wireless 1Q 17 2Q 173Q 174Q 171Q 18QoQ YoY Subscribers (Unit: 1,000)1) Total (LTE+WCDMA) 19,234 19,52119,79520,01520,3781.8%5.9% Net additions 342 28727422036365.0%6.1% Gross additions 1,242 1,2241,2701,2641,211-4.2%-2.5% Deactivation2) 900 9379961,043848-18.7%5.8% Churn ra

  21. Slide 21: People. Technology. KT

    PEOPLE. TECHNOLOGY. Kt

KT — Q1 2018 Earnings Presentation on 6ix