Kt Corporation · KRX:030200
Kt — Q1 2023 Earnings Presentation
21 slides from Kt's earnings presentation, May 11, 2023
Slide 1: KT 1Q23 Earnings Release
KT 1023 Earnings Release 2023. 5. 11 | Investor Relations DIGICO KT
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: Financial Highlights, Business Overview, Appendix
2 Financial Highlights 3 Business Overview 4 Appendix 3
Slide 4: 1Q23 Highlights
1 1Q23 Highlights Financials (Unit: KRW) Consistent revenue growth through stable implementation of the strategy (Unit: KRW) Revenue Revenue Consolidated KT Separate 6,443.7bn (YoY +2.6%) 4,619.0bn (YoY +0.2%) Operating Operating 486.1bn (YoY -22.4%) 388.1bn (YoY -9.7%) Profit Profit ※ Beside one-of
Slide 5: DIGICO Transformation
2 DIGICO Transformation DIGICO+B2B service revenue account for 41% of the total service revenue in1Q23 ※Cloud/IDC rev.(including kt cloud) reflected in total service rev. and DIGICO B2B 5
Slide 6: Financial Highlights
1 1Q23 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix 6
Slide 7: Consolidated Income Statement
K-IFRS / Consolidated 1 Income Statement • Revenue up +2.6% YoY by stable DIGICO·B2B growth and core-portfolio-oriented subsidiaries’ growth in finance/contents/DX • Operating income -22.4% YoY due to base effect of one off profit in 1Q22, inflation, and recession (Unit: KRW bn) 1Q22 4Q22 1Q23 QoQ Y
Slide 8: Consolidated Operating Expenses
K-IFRS / Consolidated 2 Operating Expenses (Unit: KRW bn) 1Q22 4Q22 1Q23 QoQ YoY 5,651.1 6,431.5 5,957.6 -7.4% 5.4% Operating Expenses Labor Cost 1,040.4 1,259.3 1,069.1 -15.1% 2.8% 2,471.0 2,771.2 2,604.0 -6.0% 5.4% General Expense - Depreciation 891.7 929.4 929.4 0.0% 4.2% 799.6 885.9 830.2 -6.3%
Slide 9: Consolidated Financial Position
K-IFRS / Consolidated 3 Financial Position (Unit: KRW bn) 1Q22 4Q22 1Q23 QoQ YoY Assets 37,301.1 40,980.7 40,214.4 -1.9% 7.8% Cash & Cash equivalents 2,682.2 2,449.1 2,109.2 -13.9% -21.4% Liabilities 20,707.3 22,566.0 22,062.4 -2.2% 6.5% Borrowings 8,894.9 10,006.7 10,577.1 5.7% 18.9% 16,593.8 18,41
Slide 10: Separate and major subsidiaries CAPEX
K-IFRS / Separate and major subsidiaries 4 CAPEX • 1Q23 CAPEX execution : KRW 313.5 bn(KT separate), KRW 152.7bn(major subsidiaries) (Unit: KRW bn) ■ Major subsidiaries CAPEX 3,502 3,452 Finance, Media·Content, Cloud/IDC, 3,127 Real Estate and etc. 692 782 462 ■ KT separate CAPEX Access network, Bac
Slide 11: Business Overview
1 1Q23 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix 11
Slide 12: Separate KT – Telco B2C
K-IFRS / Separate 1 KT – Telco B2C • Revenue up +1.2% YoY due to premium mobile/broadband subs acq and growth in roaming service • 5G penetration ratio reached 65% among handset subs, and GiGA subs portion reached 67% (Unit: KRW bn) 1Q22 4Q22 1Q23 QoQ YoY Telco B2C 2,353.5 2,382.3 2,381.1 -0.1% 1.2%
Slide 13: Separate KT – DIGICO B2C
K-IFRS / Separate 2 KT – DIGICO B2C • DIGICO B2C revenue up +3.1% YoY based on balanced growth of media and mobile platform biz • IPTV revenue up +2.8% YoY with consistent growth of subscriber base (Unit: KRW bn) 1Q22 4Q22 1Q23 QoQ YoY DIGICO B2C 549.3 565.5 566.1 0.1% 3.1% Media 496.0 509.8 506.9 -
Slide 14: Separate KT – TELCO B2B
K-IFRS / Separate 3 KT – TELCO B2B • Corporate broadband/data revenue up +3.4% YoY based on increased data traffic of B2B clients • Corporate telephony revenue up +5.4% YoY due to steep growth in MVNO market (Unit: KRW bn) 1Q22 4Q22 1Q23 QoQ YoY Telco B2B 519.7 516.6 540.8 4.7% 4.1% Corp. BB/data 34
Slide 15: Separate KT – DIGICO B2B
K-IFRS / Separate 4 KT – DIGICO B2B • Revenue generated from B2B DX orders secured, such as Shinhan AICC, Construction of M-BCN • Le-meridian & Moxy hotel open(’22.Nov) and growth of real estate rev. due to recovery in hotel business (Unit: KRW bn) 1Q22 4Q22 1Q23 QoQ YoY 539.6 458.9 464.6 1.2% -13.9
Slide 16: Major Subsidiaries
K-IFRS / consolidated(each subsidiary) 5 Major Subsidiaries • BC card revenue up +5.6% YoY with increased credit card transaction and finance biz expansion • Contents subsidiaries revenue -7.6% YoY owing to sluggish advertising market due to recession • OP of subsidiaries recorded KRW 98 bn despite
Slide 17: Appendix
1 1Q23 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix 17
Slide 18: K-IFRS Income Statement
1 K-IFRS Income Statement (Unit: KRW bn) Consolidated 1Q 22 2Q 22 3Q 22 4Q22 1Q 23 KT Separate 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 6,277.7 6,312.2 6,477.2 6,583.0 6,443.7 4,608.4 4,517.8 4,590.2 4,572.8 4,619.0 Operating revenue Operating revenue Service revenue 5,565.5 5,670.5 5,744.8 5,705.0 5,713.9 Ser
Slide 19: K-IFRS Balance Sheet
2 K-IFRS Balance Sheet (Unit: KRW bn) Consolidated 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 KT Separate 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 Assets 37,301.1 39,066.3 40,651.5 40,980.7 40,214.4 Assets 29,305.6 30,169.5 31,055.2 30,417.8 30,386.9 Current assets 12,189.9 12,563.7 13,042.2 12,681.6 12,202.0 Current asset
Slide 20: Separate Subscribers Wireless
K-IFRS / Separate 3 Subscribers Wireless 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 QoQ YoY 1) Subscribers (Unit: Thousands) Total 23,060 23,409 23,827 24,062 24,332 1.1% 5.5% Net additions 261 349 418 235 270 14.5% 3.3% Gross additions 1,039 1,010 984 990 979 -1.2% -5.8% 2) Deactivation 778 661 566 755 709 -6.1
Slide 21: Slide 21