Slide 1: KT 2Q14 Earnings Release
KT 2Q14 Earnings Release Global No. 1 KT Investor Relations 2014. 7. 29 kt
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 2
Slide 4: Financial Highlights: Income Statement
K-IFRS / Consolidated 1-1 Financial Highlights Income Statement (Unit: KRW bn) Operating revenue 5,895.5bn (YoY) 2.4%/(QoQ) 0.8% 2Q14 2Q13 YoY 2Q14 1Q14 QoQ Operating revenue 5,895.5 5,757.0 2.4% 5,895.5 5,846.1 0.8% Service revenue 4,988.0bn Service revenue 4,988.0 4,938.2 1.0% 4,988.0 4,858.7 2.7%
Slide 5: Financial Highlights: Major Subsidiaries
K-IFRS / Consolidated 1-2 Financial Highlights Major Subsidiaries BC Consolidated from 4Q11 (KT’s share : 69.5%) skylife Consolidated from 1Q11 (KT’s share : 49.9%) kt rental Consolidated from 3Q12 (KT’s share : 58.0%) (Unit: KRW bn) Operating Revenue 776.7 787.0 801.6 2Q13 1Q14 2Q14 153.8 158.1 161
Slide 6: Financial Highlights: Operating Revenue
K-IFRS / Consolidated 1-3 Financial Highlights Operating Revenue 2Q14 Operating revenue 5,895.5bn (YoY) 2.4%/(QoQ) 0.8% Subscriber and mobile ARPU growth led wireless revenue increase (YoY) +2.7%/(QoQ) +0.9% Wireline revenue fell mainly due to Telephony revenue decline (YoY) -6.6%/(QoQ) -0.9% Media/
Slide 7: Financial Highlights: Operating Expenses
K-IFRS / Consolidated 1-4 Financial Highlights Operating Expenses 2Q14 Operating expenses 6,708.5bn (YoY) +24.0%/(QoQ) +17.8% Labor cost surged mainly due to Early Retirement Program expenses (YoY) +115.1%/(QoQ) +116.6% Cost of service provided fell due to decrease in real estate development cost (Y
Slide 8: Financial Highlights: Financial Position
K-IFRS / Consolidated 1-5 Financial Highlights Financial Position (Unit: KRW bn) Debt Ratio Liability to Equity : 188.3% Net Debt to Equity : 91.2% Debt Position Total Debt : 13,111.2bn Net Debt : 10,795.4bn 2Q14 2Q13 YoY 2Q14 1Q14 QoQ Assets 34,116.4 33,490.3 1.9% 34,116.4 34,317.5 -0.6% Cash and c
Slide 9: Financial Highlights: CAPEX
K-IFRS / KT Separate 1-6 Financial Highlights CAPEX (Unit: KRW bn) Total CAPEX Investments for wireline and wireless network to strengthen core competency - wideband LTE & broadband network enhancement 2Q14 : 562.7bn (YoY) -6.8%/(QoQ) -57.5% 1H14 : 919.9bn FY2014 Guidance : KRW 2.7tn Wireless CAPEX
Slide 10: Business Overview
1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix 9
Slide 11: Business Overview: Wireless
K-IFRS / Consolidated 2-1 Business Overview Wireless Wireless service revenue increased by 2.7% YoY along with subscriber expansion and ARPU growth Net addition of 300K subscribers in 2Q Wireless ARPU was recorded at KRW 33,619, representing 6.3% YoY (Appendix 4-3) LTE subscribers stand at 9.4m as o
Slide 12: Business Overview: Wireline
K-IFRS / Consolidated 2-2 Business Overview Wireline Wireline revenue declined by 6.6% YoY due to line loss and MOU decrease of telephony business. Abate wireline revenue decline through continuous expansion of broadband IP subscribers and bundling products (Unit: KRW bn) 2Q14 2Q13 YoY 2Q14 1Q14 QoQ
Slide 13: Business Overview: Media / Contents
K-IFRS / Consolidated 2-3 Business Overview Media / Contents Expansion of KT Group Media subscribers led to 13.8% YoY revenue growth KT IPTV media subscribers stands at 5.37m, with net gain of 210k in 2Q14 OTS : 2.30m OTV : 3.07m IPTV targets net gain of 800k subscribers in 2014 Strengthen media/con
Slide 14: Business Overview: Finance / Rental
K-IFRS / Consolidated 2-4 Business Overview Finance / Rental Finance/Rental revenue BC Card revenue increased by 1.3% YoY, recording 830.5bn KT Rental revenue increased by 28.8% YoY, recording 187.5bn Other Service revenue Other Service revenue rose by 1.0% YoY, recording 382 bn due to increase in I
Slide 15: Q&A
Q&A 1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix 14
Slide 16: Appendix
1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix 15
Slide 17: K-IFRS Quarterly Income Statements
4-1 K-IFRS Quarterly Income Statements Consolidated I/S 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Operating revenue 6,104.5 5,757.0 5,734.6 6,214.5 5,846.1 5895.5 Service Revenue 4,941.2 4,938.2 4,935.0 5,029.8 4,858.7 4988.0 Wireless 1,756.6 1,752.2 1,713.8 1,753.9 1,783.4 1,798.8 Fixed line 1,521.9 1,507.7 1,
Slide 18: K-IFRS Statement of Financial Position
4-2 K-IFRS Statement of Financial Position Consolidated 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Asset 34,074.9 33,490.3 34,127.2 34,846.5 34,317.5 34,116.4 Current assets 10,546.3 10,108.2 10,057.1 9,968.4 10,009.0 9,556.2 Cash &cash equivalents 1,492.5 1,881.6 2,033.1 2,070.9 1,694.8 2,315.8 Trade & other re
Slide 19: Subscribers (KT only)
4-3 Subscribers (KT only) Wireless 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 QoQ YoY Total Wireless Subscribers 17,371 17,354 17,205 17,300 17,293 17,564 1.6% 1.2% 3G + LTE 16,443 16,439 16,325 16,454 16,473 16,774 1.83% 2.04% WiBro 928 915 880 846 820 790 -3.7% -13.7% Mobile Subscribers (*1,000) Gross addition
Slide 20: Thank you
Thank you kt