Kt Corporation · KRX:030200

Kt — Q2 2017 Earnings Presentation

18 slides from Kt's earnings presentation, Jul 28, 2017

  1. Slide 1: KT 2Q17 Earnings Release

    KT 2Q17 Earnings Release Global No. 1 KT Investor Relations| 2017. 7. 28.

  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 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix

  4. Slide 4: Consolidated Financial Highlights: Income Statement

    K-IFRS / Consolidated 1-1 Financial Highlights Income Statement (Unit: KRW bn) ? Operating Revenue 2Q16 1Q17 2Q17 QoQ YoY KRW 5,843bn, (YoY) +2.9% Operating revenue 5,677.6 5,611.7 5,842.5 4.1% 2.9% ◾ Service Revenue KRW 5,069bn, (YoY) +0.6% Service revenue 5,041.2 4,948.5 5,069.1 2.4% 0.6% Merchand

  5. Slide 5: Consolidated Financial Highlights: Operating Expenses

    K-IFRS / Consolidated 1-2 Financial Highlights Operating Expenses Operating Expenses KRW 5,395bn, (YoY) +2.8% Labor Cost KRW 872bn, (YoY) +1.8% General Expenses KRW 2,442bn, (YoY) +0.1% Selling Expenses KRW 576bn, (YoY) +9.3% (Unit : KRW bn) 2Q16 1Q17 2Q17 QoQ YoY Operating Expenses 5,250.7 5,194.7

  6. Slide 6: Consolidated Financial Highlights: Financial Position

    K-IFRS / Consolidated 1-3 Financial Highlights Financial Position Debt Position Borrowings: KRW 6,525bn Net Debt: KRW 4,869bn Debt Ratio Debt to Equity: 133.2% Net Debt to Equity: 37.3% (Unit: KRW bn) 2Q16 1Q17 2Q17 QoQ YoY Assets 28,624.2 30,102.6 27,825.5 -7.6% -2.8% Cash and cash Equivalents 3,04

  7. Slide 7: KT Separate Financial Highlights: CAPEX

    K-IFRS / KT Separate 1-4 Financial Highlights CAPEX • Total CAPEX • 1H Execution KRW 689bn • CAPEX Breakdown • Access Network: KRW 441bn • Backbone Network: KRW 110bn • B2B: KRW 65bn • Others: KRW 73bn • 2017 Guidance KRW 2.4tn • Execution Ratio: 28.7% (Unit: KRW bn) access backbone B2B others

  8. Slide 8: Business Overview

    1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix

  9. Slide 9: Business Overview: Wireless

    K-IFRS / Consolidated 2-1 Business Overview Wireless Wireless Revenue down by 5.2% YoY Wireless Revenue down on accounting change related to ‘Handset Protection Plan’ (Unit : KRW bn) 2Q16 1Q17 2Q17 QoQ YoY Wireless 1,880.1 1,793.9 1,781.4 -0.7% -5.2% Service 1,672.8 1,632.8 1,643.8 0.7% -1.7% Interc

  10. Slide 10: Business Overview: Wireline

    2-2 Business Overview Wireline Wireline down by 4.7% YoY Telephony ◾ 1H17 Telephony down 10.2% YoY (Unit : KRW bn) 2Q16 1Q17 2Q17 QoQ YoY Wireline 1,286.2 1,254.3 1,226.1 -2.2% -4.7% Telephony 526.5 489.8 461.4 -5.8% -12.4% Broadband 479.8 496.2 501.1 1.0% 4.4% Line lease 279.9 268.2 263.6 -1.7% -5.

  11. Slide 11: Business Overview: Media / Contents

    K-IFRS / Consolidated 2-3 Business Overview Media / Contents Media/Contents up by 19.2% YoY Media Revenue up by 11.2% YoY on subscriber quality enhancement and platform revenue expansion IPTV subs reached 7.2million (Unit : KRW bn) 2Q16 1Q17 2Q17 QoQ YoY Media/Contents 470.9 519.7 561.4 8.0% 19.2% M

  12. Slide 12: Business Overview: Finance and Other Service

    K-IFRS / Consolidated 2-4 Business Overview Finance and Other service Finance Revenue Finance Revenue up 6.6% YoY on Master Card stake’s sale and increased domestic transaction volume Other Service Revenue Revenue up 7.2% YoY on increased overseas SI backlog and real estate revenue expansion (Unit :

  13. Slide 13: Q&A

    1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix

  14. Slide 14: Appendix

    1 Financial Highlights 2 Business Overview 3 Q&A 4 Appendix

  15. Slide 15: K-IFRS Quarterly Income Statements

    4-1 K-IFRS Quarterly Income Statements Consolidated I/S 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 Operating revenue 5,677.6 5,529.9 6,021.1 5,611.7 5,842.5 Service Revenue 5,041.2 5,040.0 5,026.5 4,948.5 5,069.1 Wireless 1,880.1 1,884.1 1,803.1 1,793.9 1,781.4 Fixed line 1,286.2 1,255.0 1,245.0 1,254.3 1,226.1

  16. Slide 16: K-IFRS Statement of Financial Position

    4-2 K-IFRS Statement of Financial Position Consolidated 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 Asset 28,624.2 30,135.8 30,587.7 30,102.6 27,825.5 Current assets 8,838.8 10,105.2 9,643.3 9,858.1 7,592.8 Cash & cash equivalents 3,043.2 3,460.8 2,900.3 2,002.1 1,656.5 Trade & other rec 3,353.2 3,312.4 3,360.2 3

  17. Slide 17: Subscribers (KT Separate)

    4-3 Subscribers (KT Separate) Wireless 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 QoQ YoY Subscribers (Unit: 1,000)1) Total (LTE+WCDMA) 18,378 18,678 18,892 19,234 19,521 1.5% 6.2% Net additions 198 300 214 342 287 -16.1% 45.0% Gross additions 1,134 1,241 1,244 1,242 1,224 -1.4% 8.0% Deactivation2) 936 941 1,030

  18. Slide 18: Thank you

    Thank you

KT — Q2 2017 Earnings Presentation on 6ix