Kt Corporation · KRX:030200

Kt — Q2 2018 Earnings Presentation

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

  1. Slide 1: KT '18 2Q Earnings Release

    KT ‘18 2Q Earnings Release 2018.83 | 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 2Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  4. Slide 4: 2Q18 Highlight

    Contents 1 2Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  5. Slide 5: 2Q18 Highlight

    1 2Q18 Highlight  Sustained revenue and subscriber growth with new data plan and differentiated service offerings  Service development in platform businesses (energy, security, AI, connected car, etc.) for securing long-term growth momentum preparing for the upcoming 5G era High-quality subscr

  6. Slide 6: Financial Highlights

    Contents 1 2Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  7. Slide 7: Consolidated Financial Highlights: Income Statement

    K-IFRS / Consolidated 2-1 Financial Highlights Income Statement (Unit: KRW bn) 2Q17* 1Q18* 2Q18* QoQ YoY 1Q18 2Q18 QoQ Operating Revenue KRW 5.88tn, YoY +0.7% Operating revenue 5,842.5 5,837.9 5,882.4 0.8% 0.7% 5,710.2 5,806.9 1.7% Service Revenue Service revenue 5,069.1 4,921.7 5,050.2 2.6% -0.4% 4

  8. Slide 8: Consolidated Financial Highlights: Operating Expenses

    K-IFRS / Consolidated 2-2 Financial Highlights Operating Expenses (Unit: KRW bn) Operating Expenses 2Q17* 1Q18* 2Q18* QoQ YoY 1Q18 2Q18 QoQ KRW 5.51tn, YoY +2.0% Operating expense 5,395.2 5,402.7 5,505.4 1.9% 2.0% 5,313.1 5,407.8 1.8% Labor Cost KRW 989.6bn, YoY +13.5% Labor cost 872.1 923.5 989.6 7

  9. Slide 9: Consolidated Financial Highlights: Financial Position

    K-IFRS / Consolidated 2-3 Financial Highlights Financial Position (Unit: KRW bn) Equity increase on IFRS15 2Q 17* 1Q 18 2Q 18 QoQ YoY initial application Assets 27,825.5 30,467.8 29,968.0 -1.6% 7.7%—Cumulative impact reflected st Cash & cash equivalents 1,656.5 1,777.5 2,249.7 26.6% 35.8% in Jan 1 ,

  10. Slide 10: Separate Financial Highlights: CAPEX

    K-IFRS / Separate 2-4 Financial Highlights CAPEX (Unit: KRW bn) Access Network 1H 2018 CAPEX 3,313 Backbone Network B2B KRW 644.7bn executed Others 28.0% executed as of 1H18 2,514 2,397 2,359 CAPEX Breakdown 2,250 2,300 1,870 Access Network: KRW 324.1bn 1,362 1,133 Backbone Network: KRW 123.4bn 1,31

  11. Slide 11: Business Overviews

    Contents 1 2Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  12. Slide 12: Business Overview: Wireless

    K-IFRS / Consolidated 3-1 Business Overview Wireless (Unit: KRW bn) Wireless up by 0.3% YoY 2Q17* 1Q18* 2Q18* QoQ YoY 1Q18 2Q18 QoQ Service revenue declined on Wireless 1,781.4 1,777.9 1,786.2 0.5% 0.3% 1,740.8 1,763.7 1.3% increased take-up rate of ‘selective Service 1,679.5 1,660.2 1,667.2 0.4% -0

  13. Slide 13: Business Overview: Wireline

    K-IFRS / Consolidated 3-2 Business Overview Wireline (Unit: KRW bn) Wireline down by 2.4% YoY 2Q17* 1Q18* 2Q18* QoQ YoY 1Q18 2Q18 QoQ Wireline 1,226.1 1,212.4 1,196.3 -1.3% -2.4% 1,198.8 1,181.5 -1.4% Telephony 461.4 437.6 433.2 -1.0% -6.1% 436.9 432.5 -1.0% Telephony Broadband 501.1 516.7 508.9 -1.

  14. Slide 14: Business Overview: Media / Contents

    K-IFRS / Consolidated 3-3 Business Overview Media / Contents (Unit: KRW bn) Media / Contents up by 7.6% YoY 2Q17* 1Q18* 2Q18* QoQ YoY 1Q18 2Q18 QoQ Media / Contents 561.4 561.7 604.2 7.6% 7.6% 554.2 595.2 7.4% Media Media 457.1 461.5 495.3 7.3% 8.4% 454.3 487.3 7.3% IPTV net adds of 100k in 2Q18 Con

  15. Slide 15: Business Overview: Finance and others

    K-IFRS / Consolidated 3-4 Business Overview Finance and others (Unit: KRW bn) Finance down by 5.2% YoY 2Q17* 1Q18* 2Q18* QoQ YoY 1Q18 2Q18 QoQ Finance revenue declined Finance 914.7 832.7 866.7 4.1% -5.2% 832.7 866.7 4.1% on decreased ‘Union-Pay’ card Other service 585.5 537.0 596.8 11.1% 1.9% 537.1

  16. Slide 16: Q&A

    Contents 1 2Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  17. Slide 17: Appendix

    Contents 1 2Q18 Highlight 2 Financial Highlights 3 Business Overviews 4 Q&A 5 Appendix

  18. Slide 18: K-IFRS Income Statement

    5-1 K-IFRS Income Statement Consolidated 2Q 17* 3Q 17* 4Q 17* 1Q 18* 2Q 18* 1Q 18 2Q 18 Operating revenue 5,842.5 5,826.6 6,106.6 5,837.9 5,882.4 5,710.2 5,806.9 Service revenue 5,069.1 5,047.2 5,058.2 4,921.7 5,050.2 4,863.6 5,003.6 Wireless 1,781.4 1,816.6 1,811.4 1,777.9 1,786.2 1,740.8 1,763.7 F

  19. Slide 19: K-IFRS Balance Sheet

    5-2 K-IFRS Balance Sheet Consolidated 1Q 17* 2Q 17* 3Q 17* 4Q 17* 1Q 18 2Q 18 Asset 30,102.6 27,825.5 29,373.0 29,580.6 30,467.8 29,968.0 Current assets 9,858.1 7,592.8 9,354.1 9,522.1 10,928.3 10,696.9 Cash & cash equi. 2,002.1 1,656.5 2,168.6 1,928.2 1,777.5 2,249.7 Trade & other rec 3,196.7 3,384

  20. Slide 20: Separate Subscribers: Wireless

    K-IFRS / Separate 5-3 Subscribers Wireless 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 QoQ YoY Subscribers (Unit: 1,000)1) Total (LTE+WCDMA) 19,234 19,521 19,795 20,015 20,378 20,662 1.4% 5.8% Net additions 342 287 274 220 363 284 -21.8% -1.1% Gross additions 1,243 1,225 1,270 1,264 1,211 1,160 -4.2% -5.3%

  21. Slide 21: PEOPLE. TECHNOLOGY. Kit

    PEOPLE. TECHNOLOGY. Kit

KT — Q2 2018 Earnings Presentation on 6ix