Slide 1: KT 1Q20 IR Presentation Earnings Release
KT 1Q20 IR PRESENTATION Earnings Release
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by KT Corp.(the “Company”) in accordance with K-IFRS. 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 c
Slide 3: Business Overview / Appendix
2 Business Overview 3 Appendix 3
Slide 4: Revenue Classification Change
1 Revenue Classification Change • [KT Separate] Wireless/Fixed-line/Media and other core biz Changed to two main categories, B2C/B2B • [Consolidated] Revenue classified in KT BMs Separated the performance of KT from its affiliates As-is To-be Wireless Wireless Wireless Broadband Telephony B2C IP
Slide 5: Consolidated Income Statement
K-IFRS / Consolidated 2 Income Statement • Service revenue up by +1.0% YoY due to the increase in Wireless, Media and B2B biz • Operating profit down by -4.7% YoY with profit decline of group companies impacted by COVID-19 - Operating income: KRW 299.6 billion (YoY +1.1%), KT separate - Affiliates o
Slide 6: Consolidated Operating Expenses
K-IFRS / Consolidated 3 Operating Expenses (Unit: KRW bn) 1Q19 2Q19 3Q19 4Q19 1Q20 QoQ YoY Operating Expenses 5,432.3 5,810.3 5,901.2 6,047.2 5,448.6 -9.9% 0.3% Labor Cost 983.8 1,006.1 959.4 1,001.8 1,003.9 0.2% 2.0% General Expense 2,327.1 2,459.3 2,433.5 2,579.7 2,259.5 -12.4% -2.9% - Depreciatio
Slide 7: Consolidated Financial Position
K-IFRS / Consolidated 4 Financial Position (Unit: KRW bn) 1Q 19 4Q 19 1Q 20 QoQ YoY Assets 33,247.8 34,061.3 32,631.0 -4.2% -1.9% Cash & Cash Equivalents 2,765.0 2,305.9 1,627.1 -29.4% -41.2% Liabilities 18,509.4 18,874.3 17,559.4 -7.0% -5.1% Borrowings 6,790.1 7,298.9 7,286.9 -0.2% 7.3% Equity 14,7
Slide 8: Separate CAPEX
K-IFRS / Separate 5 CAPEX • FY2020 CAPEX guidance as 3.1 trillion won and executed 406.9bn won in 1Q20 (13.1%) - Access Network 225.7bn, Backbone Network 55.1bn, B2B communications 77.4bn, others 48.7bn (Unit: KRW bn) 3,711 Access Network 3,313 3,257 Backbone Network B2B Others 2,514 2,397 2,359 2,4
Slide 9: Business Overview
2 Business Overview 3 Appendix 9
Slide 10: Separate KT - Wireless
K-IFRS / Separate 1 KT - Wireless ∙ Wireless service revenue up by +2.2% YoY on net addition of MNO subscribers and its ARPU increase ∙ Total number of 5G subscribers reached 1.78 million (13% of Handset subscribers) in 1Q20 (Unit: KRW bn) 1Q19 2Q19 3Q19 4Q19 1Q20 QoQ YoY Wireless 1,702.8 1,712.5 1,
Slide 11: Separate KT – Fixed Line/IPTV
K-IFRS / Separate 2 KT – Fixed Line/IPTV ∙ Broadband revenue up by +0.5% YoY driven by GiGA subscriber increase ∙ IPTV revenue went up by +11.9% on high-ARPU customers and platform revenue increase (Unit: KRW bn) 1Q19 2Q19 3Q19 4Q19 1Q20 QoQ YoY Telephony 400.6 400.4 397.0 382.5 372.5 -2.6% -7.0% Br
Slide 12: Separate KT – B2B and others
K-IFRS / Separate 3 KT – B2B and others ∙ B2B revenue up by +8.2% YoY on continuous IDC business growth and expansion of Cloud business toward public and finance sector (Unit: KRW bn) 1Q19 2Q19 3Q19 4Q19 1Q20 QoQ YoY B2B 623.4 684.8 684.9 725.9 674.8 -7.1% 8.2% Corporate Fixed Line 263.0 266.1 266.2
Slide 13: Major subsidiaries
4 Major subsidiaries • BC card’s revenue down by -7.7% due to decreased usage of credit cards, impacted by COVID-19 • Skylife underperformed its revenue by -1.6% YoY due to the decline in satellite TV subscribers • Contents subsidiaries’ revenue surged by +12.0% YoY with substantial growth in T-Comm
Slide 14: Appendix
2 Business Overview 3 Appendix 14
Slide 15: K-IFRS Income Statement
1 K-IFRS Income Statement (Unit: KRW bn) Consolidated 1Q 19 2Q 19 3Q 19 4Q 19 2019 1Q 20 KT Separate 1Q 19 2Q 19 3Q 19 4Q 19 2019 1Q 20 Operating revenue 5,834.4 6,098.5 6,213.7 6,195.5 24,342.1 5,831.7 Operating revenue 4,334.3 4,558.5 4,705.7 4,606.2 18,204.7 4,429.1 Service revenue 5,055.5 5,225.
Slide 16: K-IFRS Balance Sheet
2 K-IFRS Balance Sheet (Unit: KRW bn) Consolidated 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 KT Separate 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 Assets 33,247.8 33,469.4 33,661.3 34,061.3 32,631.0 Assets 26,837.7 26,959.8 27,076.4 27,733.9 27,069.1 Current assets 12,396.1 11,818.3 11,716.7 11,725.1 10,887.2 Current asset
Slide 17: Separate Subscribers
K-IFRS / Separate 3 Subscribers Wireless 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 QoQ YoY Subscribers (Unit: Thousands)1) Total 21,333 21,549 21,771 21,922 21,975 0.2% 3.0% Net additions 213 216 222 150 53 -64.8% -75.2% Gross additions 1,181 1,133 1,077 1,067 928 -13.0% -21.4% Deactivation2) 968 917 855 917 87
Slide 18: Slide 18