Kt Corporation · KRX:030200
Kt — Q3 2018 Earnings Presentation
21 slides from Kt's earnings presentation, Nov 2, 2018
Slide 1: KT '18 3Q Earnings Release
PEOPLE. TECHNOLOGY. KT ’18 3Q Earnings Release 2018. 11. 2 | Investor Relations
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 p
Slide 3: Contents
Contents 1 3Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix
Slide 4: 3Q18 Highlight
Contents 1 3Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix
Slide 5: 3Q18 Highlight
1 3Q18 Highlight Sustained revenue and subscriber growth despite regulation on wireless services Service development in platform business (AI, smart energy, security, etc.) for securing long-term growth momentum, preparing for the upcoming 5G era High-quality subscriber growth supported by tailored
Slide 6: Financial Highlights
Contents 1 3Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix
Slide 7: Financial Highlights: Income Statement
K-IFRS / Consolidated 2-1 Financial Highlights Income Statement (Unit: KRW bn) Operating Revenue 3Q17* 2Q18* 3Q18* QoQ YoY 2Q18 3Q18 QoQ Operating Revenue 5,826.6 5,882.4 5,986.0 1.8% 2.7% 5,806.9 5,948.5 2.4% Service Revenue KRW 5.14tn, YoY +1.8% Service Revenue 5,047.2 5,050.2 5,138.2 1.7% 1.8% 5,
Slide 8: Financial Highlights: Operating Expenses
2-2 Financial Highlights K-IFRS / Consolidated Operating Expenses Operating Expenses KRW 5.67tn, YoY +4.0% Labor Cost KRW 930.2bn, YoY +9.6% General Expense KRW 2.49tn, YoY +0.5% Cost of Service Provided KRW 678.8bn, YoY +12.5% Cost of Merchandise KRW 938.9bn, YoY +1.6% (Unit: KRW bn) 3Q17* 2Q18* 3Q
Slide 9: Financial Highlights: Financial Position
2-3 Financial Highlights K-IFRS / Consolidated Financial Position Equity increase on IFRS15 application Cumulative impact reflected in Jan. 1st, 2018 retained earnings Debt Position Borrowings: KRW 6.37tn New Debt: KRW 3.65tn Debt Ratio Debt to Equity: 124.1% Net Debt to Equity: 25.1% 3Q 17* 2Q 18 3
Slide 10: Financial Highlights: CAPEX
2-4 Financial Highlights K-IFRS / Consolidated CAPEX (Unit: KRW bn) Cumulative CAPEX in 2018 KRW 1.11tn executed Executed 48.2% of 2018 Guidance CAPEX Breakdown Access Network: KRW 579.1bn Backbone Network: KRW 226.4bn B2B: KRW 188.7bn Others: KRW 1,142bn 2018 Guidance KRW 2.3tn Access Network Backb
Slide 11: Business Overviews
Contents 1 3Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix
Slide 12: Business Overview: Wireless
3-1 Business Overview K-IFRS / Consolidated Wireless Wireless down by 2.1% YoY Service revenue declined on increased take-up of ‘selective tariff discount’ and uplifted discount rate, YoY -2.5% (Unit KRW bn) 3Q17* 2Q18* 3Q18* QoQ YoY 2Q18 3Q18 QoQ Wireless 1,816.6 1,786.2 1,778.6 -0.4% -2.1% 1,763.7
Slide 13: Business Overview: Wireline
3-2 Business Overview K-IFRS / Consolidated Wireline Wireline down by 1.5% YoY (Unit: KRW bn) 3Q17* 2Q18* 3Q18* QoQ YoY 2Q18 3Q18 QoQ Wireline 1,218.0 1,196.3 1,200.0 0.3% -1.5% 1,181.5 1,186.4 0.4% Telephony 452.0 433.2 421.7 -2.7% -6.7% 432.5 421.1 -2.6% Broadband 503.3 508.9 512.8 0.8% 1.9% 494.7
Slide 14: Business Overview: Media/Contents
K-IFRS / Consolidated 3-3 Business Overview Media/Contents (Unit KRW bn) Media/Contents up by 9.2% YoY 3Q17* 2Q18* 3Q18* QoQ YoY 2Q18 3Q18 QoQ Media/Contents 572.6 604.2 625.3 3.5% 9.2% 595.2 616.2 3.5% Media Media 464.5 495.3 501.9 1.3% 8.0% 487.3 493.2 1.2% IPTV net adds of 100K for 3 consecutive
Slide 15: Business Overview: Finance and Others
K-IFRS / Consolidated 3-4 Business Overview Finance and Others Finance up by 1.0% YoY 3Q17* 2Q18* 3Q18* QoQ YoY 2Q18 3Q18 QoQ Finance 873.9 866.7 882.3 1.8% 1.0% 866.7 882.3 1.8% Other Services 566.2 596.8 652.0 9.3% 15.2% 596.5 652.0 9.3% IT / Solution 244.5 261.6 273.0 4.4% 11.6% 261.6 273.0 4.4%
Slide 16: Q&A
Contents 1 3Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix
Slide 17: Appendix
Contents 1 3Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix
Slide 18: K-IFRS Income Statement
5-1 K-IFRS Income Statement Consolidated 3Q 17* 4Q 17* 1Q 18* 2Q 18* 3Q 18* 1Q 18 2Q 18 3Q 18 Operating revenue 5,826.6 6,106.6 5,837.9 5,882.4 5,986.0 5,710.2 5,806.9 5,948.5 Service revenue 5,047.2 5,058.2 4,921.7 5,050.2 5,138.2 4,863.6 5,003.6 5,096.9 Wireless 1,816.6 1,811.4 1,777.9 1,786.2 1,7
Slide 19: K-IFRS Balance Sheet
5-2 K-IFRS Balance Sheet (Unit: KRW bn) Consolidated 1Q 17* 2Q 17* 3Q 17* 4Q 17* 1Q 18 2Q 18 3Q 18 Asset 30,102.6 27,825.5 29,373.0 29,580.6 30,467.8 29,968.0 32,644.5 Current assets 9,858.1 7,592.8 9,354.1 9,522.1 10,928.3 10,696.9 13,662.5 Cash & cash equi. 2,002.1 1,656.5 2,168.6 1,928.2 1,777.5
Slide 20: Subscribers
5-3 Subscribers K-IFRS / Separate Wireless 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 QoQ YoY Subscribers (Unit: 1,000)1) Total (LTE+WCDMA) 19,234 19,521 19,795 20,015 20,378 20,662 20,920 1.2% 5.7% Net additions 342 287 274 220 363 284 258 -9.2% -6.0% Gross additions 1,243 1,225 1,270 1,264 1,211 1,
Slide 21: People. Technology.
PEOPLE. TECHNOLOGY.