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KT CORP — Regulatory Filings 2003
Feb 6, 2003
30640_ffr_2003-02-06_51406a79-706a-4995-bb1e-dd3492ce38b9.zip
Regulatory Filings
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6-K 1 d6k.htm FORM 6-K Form 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16 UNDER THE SECURITIES
EXCHANGE ACT OF 1934
For the month of February 2003
KT Corporation
206 Jungja-dong
Bundang-gu, Sungnam
Kyunggi-do
463-711
Korea
(Address of principal executive offices)
(indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes No X
This Current Report on Form 6-K is being filed to incorporate by reference into Registration Statement No. 333-100251 on Form F-3, effective December 27, 2002, relating to $1,210,050,000 0.25% Convertible Notes Due 2007, $500,000,000 4.30% Bonds Due 2005 and Warrants to Purchase 9,270,200 Common Shares.
(KSE: 30200 / NYSE: KTC)
Year 2002
Preliminary Earnings Commentary
Disclaimer
This material contains estimated information of unaudited non-consolidated preliminary financial and operating data of KT Corporation (KT or the company) as of 2002 year end and forward-looking statements with respect to the financial condition, results of operations and business of KT management. Statements that are not historical facts, including statements about KTs beliefs and expectations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements were based on current plan, estimates and perfections of KT and the political and economic environment in which KT will operate in the future and therefore you should not place undue reliance on them.
Therefore, KT does not make any representation or warranty, expressed or implied, as to the accuracy or completeness of the unaudited financial and operating data contained in this material and such information maybe materially different from the actual results or performance of KT. KT speaks only as of the date it is made, and KT undertakes no obligation to update publicly any of them in light of new information or future events.
Please note that the financial and operating data contained in this presentation have been rounded. Since affiliated companies have not finished accounting, estimated figures were used for the equity method gains/losses. KTs non-consolidated audit financial statements and report as of and for the fiscal year end of 2002 will be filed with the Korea Financial Supervisory Commission in March 31, 2003.
If you have any questions in connection with this presentation, please contact the Investor Relations Department of KT Corp.
KT Corporation
Investor Relations
Tel: 82-31-727-0941~5
Fax: 82-31-727-0939
E-mail: [email protected]
Financial Highlights
A. Summary of Balance Sheet
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Total Assets | 22,018.5 | 22,851.1 | -832.6 | -3.6 % | 22,018.5 | 22,743.0 | -724.5 | -3.2 % |
| Current Assets | 3,781.2 | 2,810.2 | 971.0 | 34.6 % | 3,781.2 | 3,482.6 | 298.6 | 8.6 % |
| Quick Assets | 3,689.3 | 2,755.6 | 933.7 | 33.9 % | 3,698.3 | 3,439.9 | 249.9 | 7.3 % |
| Cash & Cash Equivalents | 997.9 | 911.6 | 86.3 | 9.5 % | 997.9 | 1,072.9 | -75.0 | -7.0 % |
| Account Receivables | 2,122.8 | 1,616.8 | 506.0 | 31.3 % | 2,122.8 | 1,910.4 | 212.4 | 11.1 % |
| Others | 568.6 | 227.2 | 341.4 | 150.3 % | 568.6 | 456.6 | 112.0 | 24.5 % |
| Investories | 91.9 | 54.6 | 37.3 | 68.4 % | 91.9 | 42.7 | 49.2 | 115.1 % |
| Fixed Assets | 18,237.3 | 20,040.9 | -1,803.6 | -9.0 % | 18,237.3 | 19,260.4 | -1,023.1 | -5.3 % |
| Invested Assets | 6,174.6 | 7,244.8 | -1,070.2 | -14/8 % | 6,174.6 | 7,359.7 | -1,185.0 | -16.1 % |
| KTF Shares | 2,362.0 | 2,468.8 | -106.8 | -4.3 % | 2,362.0 | 2,407.7 | -45.7 | -1.9 % |
| KTICOM Shares | 0 | 847.4 | | | 0 | 848.0 | | |
| SKT Shares | 872.3 | 2,483.5 | -1,611.2 | -64.9 % | 872.3 | 1,959.3 | -1,086.9 | -55.5 % |
| Deferred Assets | 318.5 | 532.0 | -213.5 | -40.1 % | 318.5 | 447.6 | -129.1 | -28.8 % |
| Long-term Loans | 1,132.5 | 219.5 | 913.0 | 415.8 % | 1,132.5 | 936.1 | 196.4 | 21.0 % |
| Others | 1,489.3 | 693.6 | 795.7 | 114.7 % | 1,489.3 | 761.0 | 728.4 | 95.7 % |
| Tangible Assets | 11,838.6 | 12,534.3 | -695.7 | -5.6 % | 11,838.6 | 11,685.2 | 153.4 | 1.3 % |
| Intangible Assets | 224.0 | 261.7 | -37.7 | -14.4 % | 224.0 | 215.5 | 8.6 | 4.0 % |
| Total Liabilities | 14,222.2 | 11,057.6 | 3,164.7 | 28.6 % | 14,222.2 | 13,579.6 | 642.6 | 4.7 % |
| Current Liabilities | 4,325.9 | 3,829.7 | 496.2 | 13.0 % | 4,325.9 | 3,476.5 | 849.4 | 24.4 % |
| Interest-bearing Debts | 1,543.1 | 1,462.6 | 80.5 | 5.5 % | 1,543.1 | 1,235.4 | 307.8 | 24.9 % |
| Account Payable | 955.5 | 943.4 | 12.1 | 1.3 % | 955.5 | 719.3 | 236.2 | 32.8 % |
| Others | 1,827.3 | 1,423.7 | 403.6 | 28.3 % | 1,827.3 | 1,521.8 | 305.5 | 20.1 % |
| Long-term Liabilities | 9,896.3 | 7,227.9 | 2,668.5 | 36.9 % | 9,896.3 | 10,103.1 | -206.8 | -2.0 % |
| Interest-bearing Debts | 7,601.9 | 4,299.2 | 3,302.7 | 76.8 % | 7,601.9 | 7,748.6 | -146.7 | -1.9 % |
| Installation Deposit | 1,535.8 | 2,352.9 | -817.2 | -34.7 % | 1,535.8 | 1,600.9 | -65.2 | -4.1 % |
| Others | 758.7 | 575.7 | 183.0 | 31.8 % | 758.7 | 753.6 | 5.1 | 0.7 % |
| Total Shareholders Equity | 7,796.3 | 11,793.5 | -3,977.3 | -33.9 % | 7,796.3 | 9,163.3 | -1,367.1 | -14.9 % |
| Capital Stock | 1,561.0 | 1,561.0 | 0.0 | 0.0 % | 1,561.0 | 1,561.0 | 0.0 | 0.0 % |
| Capital Surplus | 1,440.3 | 1,440.3 | 0.0 | 0.0 % | 1,440.3 | 1,440.3 | 0.0 | 0.0 % |
| Retained Earnings | 8,132.6 | 6,562.3 | 1,570.3 | 23.9 % | 8,132.6 | 7,857.8 | 274.7 | 3.5 % |
| Capital Adjustment | -3,337.6 | 2,230.0 | -5,567.6 | -249.7 % | -3,337.6 | -1,695.8 | -1,641.8 | 96.8 % |
| Treasury Stock | -4,109.1 | -91.1 | -4,018.0 | -4,409.0 % | -4,109.1 | -3,471.0 | -638.1 | -18.4 % |
| Unrealized Gain on Investments | 781.0 | 2,321.1 | -1,540.2 | -66.4 % | 781.0 | 1,782.0 | -1,001.0 | -562. % |
| Others | -9.4 | 0 | -9.4 | | -9.4 | -6.7 | -2.7 | |
| Total Interest-bearing Debts | 9,145.0 | 5,761.8 | 3,383.2 | 587. % | 9,145.0 | 8,983.9 | 161.1 | 1.8 % |
| Net Debts | 8,148.2 | 4,850.2 | 3,296.9 | 68.0 % | 8,147.2 | 2,320.3 | 5,826.9 | 251.1 % |
| Debt/Equity Ratio | 182.4 % | 93.8 % | 88.7%p | 182.4 % | 148.2 % | 34.2%p |
B. Summary of Income Statement
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Operating Revenue | 11,694.3 | 11518.3 | 176.0 | 1.5 % | 3,007.0 | 2,878.2 | 128.2 | 4.5 % |
| Operating Expense | 9,951.6 | 10,063.1 | -111.5 | -1.1 % | 2,909.5 | 2,454.4 | 455.1 | 18.5 % |
| Depreciation | 2,639.6 | 2,967.0 | -327.4 | -11.0 % | 766.0 | 644.5 | 101.5 | 15.3 % |
| Labor | 2,687.0 | 2,573.2 | 113.8 | 4.4 % | 644.3 | 682.6 | -38.4 | -5.6 % |
| Commission | 576.0 | 464.9 | 111.2 | 23.9 % | 160.2 | 142.5 | 17.7 | 12.4 % |
| Sales Promotion | 223.9 | 200.4 | 23.5 | 11.7 % | 94.1 | 55.0 | 39.1 | 71.1 % |
| Sales Commission | 71.1 | 47.5 | 23.6 | 49.7 % | 35.5 | 13.8 | 21.7 | 157.1 % |
| Allowance for Sales | 186.4 | 80.7 | 105.7 | 130.9 % | 126.0 | 13.5 | 112.5 | 834.8 % |
| Advertising | 157.1 | 101.7 | 55.4 | 54.5 % | 50.5 | 32.6 | 17.9 | 55.0 % |
| Repairs & Maintenance | 323.4 | 308.8 | 14.6 | 4.7 % | 92.7 | 91.5 | 1.1 | 1.3 % |
| Cost of Goods | 268.2 | 225.9 | 42.4 | 18.8 % | 51.5 | 57.3 | -5.7 | -10.0 % |
| Cost of Service Provided | 2,064.2 | 2,384.9 | -320.8 | -13.5 % | 656.2 | 513.8 | 142.4 | 27.7 % |
| Cost of Service | 424.4 | 349.6 | 74.8 | 21.4 % | 132.7 | 100.1 | 32.6 | 32.5 % |
| LM Interconnection | 1,185.4 | 1,645.2 | -459.8 | -27.9 % | 290.9 | 307.5 | -16.7 | -5.4 % |
| Intnl Settlement | 177.9 | 200.0 | -22.0 | -11.0 % | 42.5 | 50.0 | -7.5 | -15.0 % |
| Cost of SI/NI Services | 276.4 | 190.2 | 86.3 | 45.4 % | 190.1 | 56.1 | 134.0 | 238.7 % |
| R&D | 233.9 | 218.3 | 15.6 | 7.1 % | 71.3 | 53.4 | 17.9 | 33.6 % |
| Others | 520.7 | 489.8 | 30.9 | 6.3 % | 161.2 | 133.9 | 27.3 | 20.3 % |
| Operating Income | 1,742.7 | 1,455.1 | 287.5 | 19.8 % | 97.5 | 423.8 | -326.3 | -77.0 % |
| Operating Margin | 14.9 % | 12.6 % | 2.3%P | 3.2 % | 14.7 % | -11.5%P | ||
| EDITDA | 4,382.3 | 4,422.2 | -39.9 | -0.9 % | 863.5 | 1,088.3 | -224.8 | -20.7 % |
| EDITDA Margin | 37.5 % | 38.4 % | -0.9%P | 28.7 % | 37.8 % | -9.1%P | ||
| Non-operating Income | 1,783.2 | 1,013.6 | 769.5 | 75.9 % | 1,035.7 | 146.0 | 889.7 | 609.5 % |
| Gains on Disp. Of Inv. Assets | 1.154.4 | 615.5 | 538.9 | 87.6 % | 908.3 | 0 | 908.3 | |
| Interest Income | 55.1 | 48.7 | 6.4 | 13.1 % | 41.2 | 12.0 | 2.2 | 18.1 % |
| FX Transaction Gain | 30.5 | 6.8 | 23.6 | 346.8 % | 15.1 | 5.8 | 9.3 | 160.4 % |
| FX Translation Gain | 115.3 | 11.8 | 103.5 | 876.5 % | 16.3 | -27.6 | 43.9 | -158.9 % |
| USO Fund | 145.5 | 72.6 | 72.9 | 100.4 % | 7.8 | 102.8 | -95.0 | -92.4 % |
| Others | 282.4 | 258.2 | 24.3 | 9.4 % | 74.1 | 53.0 | 21.1 | 39.9 % |
| Non-operating Expense | 921.7 | 1,102.6 | -180.9 | -16.4 % | 277.6 | 179.7 | 97.8 | 54.4 % |
| Interest Expense | 418.0 | 423.6 | -5.6 | -1.3 % | 105.8 | 111.7 | -5.9 | -5.3 % |
| FX Transaction Loss | 24.8 | 8.9 | 15.9 | 177.3 % | 3.8 | 11.3 | -7.5 | -66.2 % |
| FX Translation Loss | 18.6 | 38.6 | -20.0 | 51.7 % | 3.4 | -15.3 | 18.7 | 122.4 % |
| Loss on Equity Method | 106.8 | 132.6 | -25.8 | -19.5 % | 49.5 | 26.0 | 23.6 | 90.7 % |
| Loss on Disp. Of Inv. Assets | 85.8 | 196.2 | -110.4 | -56.3 % | 42.3 | 10.6 | 31.6 | 298.0 % |
| Others | 267.7 | 302.7 | -35.0 | -11.6 % | 72.7 | 35.4 | 37.3 | 105.2 % |
| Ordinary Income | 2,604.2 | 1,366.2 | 1,238.1 | 90.6 % | 855.7 | 390.1 | 465.6 | 119.4 % |
| Income Tax | 653.7 | 279.0 | 374.7 | 134.3 % | 200.8 | 84.4 | 116.4 | 137.9 % |
| Net Income | 1,950.5 | 1,087.2 | 863.3 | 79.4 % | 654.9 | 305.7 | 349.2 | 114.2 % |
2002 VS. 2001 Financial Highlights Comparison
Operating Revenue
Despite a 17.7% LM interconnection tariff cut in May 1 st , 2002, the revenue for year 2002 increased KRW 176.0 billion (1.5%) to KRW 11.694 trillion as Internet including broadband, wireless, and telephone revenues continued to grow.
Operating Income
Operating expense for year 2002 decreased KRW 111.5 billion (1.1%) as depreciation cost decreased due to efficient CAPEX control and interconnection cost paid to wireless operators reduced. With a support from the operating expense, operating income for year 2002 increased KRW 287.5 billion (19.8%) to KRW 1.743 trillion.
Non-Operating Income & Expense
Non-operating income for year 2002 increased substantially by KRW 769.5 billion (75.9%) to KRW 1.783 trillion, due to the sale of SKT shares, USO compensation rate increase up to 50% and FX gains.
Non-operating expense for year 2002 decreased KRW 180.9 billion (16.4%) to KRW 921.7 billion. Its mainly driven by a decrease in the loss on disposition of tangible assets by KRW 110.4 billion (56.3%) and a decrease in the loss on equity methods by KRW 25.8 billion (19.5%) as operational performance of subsidiaries including KTF improved.
Net Income
Net income increased KRW 863.2 billion (79.4%) to KRW 1.950 trillion, with a support from operating expense reduction, SKT share disposal, and USO compensation rate increase.
Normalized net income, excluding gains on SKT share disposal, also increased KRW 488.4 billion (81.8%) to KRW 1.086 trillion.
III. Operating Results
A. Operating Revenue
Overview
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Operating Revenue | 11,694.3 | 11,518.3 | 176.0 | 1.5 % | 3,007.0 | 2,878.2 | 128.8 | 4.5 % |
| Internet | 2,000.4 | 1,519.4 | 481.0 | 31.7 % | 548.4 | 501.1 | 47.3 | 9.4 % |
| Broadband | 1,573.4 | 1,117.3 | 456.1 | 40.8 % | 429.7 | 402.2 | 27.5 | 6.8 % |
| Telephone | 4,741.5 | 4,610.4 | 131.1 | 2.8 % | 1,179.9 | 1,197.0 | -17.1 | -1.4 % |
| Land-to-Mobile | 2,224.4 | 2,799.8 | -575.4 | -20.6 % | 516.8 | 502.9 | 13.9 | 2.8 % |
| Leased Line | 1,388.6 | 1,395.3 | -6.8 | -0.5 % | 337.4 | 340.6 | -3.2 | -0.9 % |
| Other data | 209.4 | 262.9 | -53.5 | -20.4 % | 55.5 | 50.1 | 5.4 | 10.9 % |
| Wireless (PCS resale etc.) | 662.5 | 518.2 | 144.3 | 27.8 % | 164.0 | 167.8 | -3.8 | -2.2 % |
| Satellite | 124.2 | 101.0 | 23.3 | 23.0 % | 23.9 | 39.6 | -15.8 | -39.8 % |
| Others | 343.3 | 311.2 | 32.1 | 10.3 % | 181.0 | 79.0 | 102.0 | 129.1 % |
Despite a 17.7% LM interconnection tariff cut in May 1 st , 2002, the total operating revenue for year 2002 increased KRW 176.0 billion (1.5%) year over year. Its mainly driven by the continuous growth in broadband, telephone and PCS Resale.
In particular, Internet revenue accounts for 17.1% of the total operating revenue in 2002 whereas it only accounted for 13.2% in 2001.
2. Internet Revenue
(KRW billion)
| FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | |||
|---|---|---|---|---|---|---|---|---|
| Sector | Amount | % | Amount | % | ||||
| Total Internet Revenue | 2000.4 | 1519.4 | 481.0 | 31.7 % | 548.4 | 501.1 | 47.3 | 9.4 % |
| Broadband | 1573.8 | 1117.1 | 456.7 | 40.9 % | 429.7 | 402.2 | 27.5 | 6.8 % |
| Kornet | 284.0 | 297.5 | -13.5 | -4.5 % | 70.7 | 69.4 | 1.3 | 1.9 % |
| Others | 142.6 | 104.8 | 37.7 | 36.0 % | 48.0 | 29.5 | 18.5 | 62.9 % |
| IDC | 82.4 | 38.9 | 43.5 | 111.8 % | 29.5 | 20.8 | 8.7 | 41.9 % |
| Bizmeka | 12.0 | 0.0 | 12.0 | | 5.6 | 2.0 | 3.5 | 174.7 % |
| Others (Hanmir, VOIP etc) | 48.1 | 65.9 | -17.8 | -0.8 | 12.9 | 6.7 | 6.3 | -1.5 |
| Broadband Subscriber No. (000) | 4,922 | 3,858 | 1,064 | 27.6 % | 4,992 | 4,558 | 434.0 | 9.5 % |
Core growth business, Internet business revenue increased KRW 481 billion (31.7%) year over year and KRW 47.3 billion (9.4%) quarter over quarter.
In 3Q of 2002 net addition of broadband subscribers slowed down; however, with a support of recent launch of VDSL and W-LAN the net addition accelerated in 4Q. Monthly net addition in October was 115,930, 122,255 in November and 126,344 in December.
Kornet revenue decreased KRW 13.5 billion (4.5%) year over year, due to fierce market competition and new service offered, such as metro-ethernet. Nevertheless, Kornet revenue increased slightly by KRW 1.3 billion (1.9%) quarter over quarter.
IDC revenue increased KRW 43.5 billion (111.8%) and B izmeka revenue, a customized solution service for SMEs, increased KRW 12 billion compared to last year; however, other internet revenue decreased KRW 17.8 billion (0.8%) compared to last year, due to the spin-off of BuynJoy , internet shopping mall, in May 2002,
- Telephone Revenue
(KRW billion)
| Sector | FY2002E | FY2001 | 2002 Y/2001 Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Total Telephone Revenue | 4,741.5 | 4,610.4 | 131.1 | 2.8 % | 1.180.0 | 1,197.0 | -17.1 | -1.4 % |
| Subscriber Connection | 1,567.5 | 1,384.4 | 183.1 | 13.2 % | 369.3 | 381.0 | -11.7 | -3.1 % |
| Subscription Fee | 250.6 | 233.1 | 17.5 | 7.5 % | 32.4 | 51.2 | -18.8 | -36.8 % |
| Basic Monthly Fee | 1,114.5 | 939.3 | 175.3 | 18.7 % | 286.3 | 282.0 | 4.3 | 1.5 % |
| Installation | 49.6 | 49.1 | 0.5 | 1.0 % | 12.8 | 10.9 | 1.9 | 17.3 % |
| Interconnection | 152.2 | 161.0 | -8.7 | -5.4 % | 37.6 | 36.9 | 0.7 | 1.9 % |
| Others | 0.5 | 2.0 | -1.4 | -72.2 % | 0.3 | 0.0 | 0.3 | 1,195.3 % |
| Local | 1,400.9 | 1,504.6 | -103.7 | -6.9 % | 368.3 | 335.2 | 33.1 | 9.9 % |
| Usage | 1,005.2 | 1,181.4 | -176.2 | -14.9 % | 260.0 | 233.8 | 26.2 | 11.2 % |
| Interconnection | 120.5 | 112.8 | 7.7 | 6.8 % | 32.6 | 30.2 | 2.3 | 7.7 % |
| Others | 275.3 | 210.4 | 64.9 | 30.8 % | 75.8 | 71.1 | 4.7 | 6.5 % |
| Domestic Long Distance | 1,050.4 | 1,032.9 | 17.5 | 1.7 % | 272.6 | 258.9 | 13.7 | 5.3 % |
| Usage | 984.1 | 990.0 | -5.9 | -0.6 % | 254.5 | 241.9 | 12.5 | 5.2 % |
| Interconnection | 65.7 | 42.5 | 23.3 | 54.8 % | 18.0 | 16.8 | 1.2 | 6.8 % |
| Others | 0.6 | 0.5 | 0.1 | 17.7 % | 0.1 | .0.1 | 0.0 | 21.8 % |
| International Long Distance | 346.2 | 364.7 | -18.5 | -5.1 % | 89.6 | 85.8 | 3.7 | 4.4 % |
| Usage | 342.5 | 362.8 | -20.3 | -5.6 % | 88.7 | 84.9 | 3.8 | 4.5 % |
| Others | 3.7 | 1.9 | 1.8 | 95.7 % | 0.9 | 1.0 | -0.0 | -5.0 % |
| International Settlement Revenue | 150.6 | 134.0 | 16.7 | 12.4 % | 42.0 | 46.2 | -4.2 | -9.0 % |
| VAS | 132.6 | 102.7 | 29.9 | 29.1 % | 35.7 | 33.9 | 1.8 | 5.2 % |
| 114 Phone Directory Service | 98.2 | 55.3 | 42.9 | 77.5 % | 4.1 | 57.3 | -53.2 | -92.8 % |
| Public Telephone | 105.1 | 143.7 | -38.6 | -26.8 % | 23.4 | 27.2 | -3.8 | -14.0 % |
| Miscellaneous | 2.0 | 4.2 | -2.2 | -52.5 % | 0.4 | 0.4 | 0.0 | 1.2 % |
| Sales D/C | -112.0 | -116.1 | 4.1 | -3.6 % | -25.5 | -28.9 | 3.4 | -11.7 % |
Telephone revenue increased KRW 131.1 billion (2.8%) year over year. The main reason for the increase is 4,271,000 non-refundable subscriber net additions. The total number of telephone subscribers increased from 21,897,000 to 22,327,000; as a result, revenue from basic monthly fee increased.
Revenue from subscription fee increased KRW 17.5 billion (7.5%) year over year, whereas it decreased KRW 18.8 billion (36.8%) quarter over quarter, due to a decrease in non-refundable subscriber net addition. The net addition in 3Q was 838,000, and 451,000 in 4Q.
Comparing to 3Q of 2002 local and domestic long distance telephone usage revenues increased KRW 26.2 billion (11.2%), and KRW 12.5 billion (5.2%), respectively with a support from a newly introduced optional flat rate program, which was offered for 3 months starting from September 2002.
The usage revenue from international long distance decreased KRW 20.3 billion (5.6%) year over year, mainly driven by a loss in market share (67.1% as of December 2001 ® 66.2% as of November 2002), due to intense competition in the market. Nevertheless, it increased KRW 3.8 billion (4.5%) quarter over quarter
Comparing to last year, 114 phone directory service revenue increased KRW 42.9 billion (77.5%), but it decreased KRW 53.2 billion (92.8%) compared to 3Q. The 92.8% quarter over quarter decrease was because the retroactive settlement recorded previously as revenue receivable in advance was adjusted in 4Q. 114 phone directory service has been offered to mobile operators at a price below the cost. However, in year 2002 mobile operators have agreed to pay 114 phone directory service they receive at its cost and to make retroactive settlement for the service they received from 1998 until 2001 based on the cost. According to the new settlement method, KTF made retroactive payment in 6 installments in 2002; however, the settlement with other mobile operators is still under negotiation.
4. LM (Land to Mobile) Interconnection Revenue
(KRW billion)
| FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | |||
|---|---|---|---|---|---|---|---|---|
| Sector | Amount | % | Amount | % | ||||
| LM Revenue | 2,224.4 | 2,799.8 | -575.4 | -20.6 % | 516.8 | 502.9 | 13.9 | 2.8 % |
| LM Interconnection Cost | 1,185.4 | 1,645.2 | -459.8 | -27.9 % | 290.9 | 307.5 | -16.7 | -5.4 % |
| LM Operating Profit | 1,039.0 | 1,154.6 | -115.6 | -10.0 % | 226.0 | 195.4 | 30.5 | 15.6 % |
| LM Margin | 46.7 % | 41.2 % | 5.5%p | 43.7 % | 38.9 % | 4.9%p |
There were 17.7% LM tariff cut and 22% LM interconnection rate cut in 2002, as results, LM revenue and LM interconnection cost both decreased KRW 575.4 billion (20.6%) and decreased KRW 459.8 billion (27.9%) year over year, respectively. Despite the LM tariff cut, LM margin increased 5.5%p year over year from 41.2% to 46.7%. Comparing to 3Q, LM revenue and LM margin increased 2.8% and 4.9%p quarter over quarter as traffic increased due to active promotion and relatively low price recognition by customers.
5. Leased Line Revenue
(KWR billion)
| FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | |||
|---|---|---|---|---|---|---|---|---|
| Sector | Amount | % | Amount | % | ||||
| Total Leased Line Revenue | 1,388.6 | 1,395.3 | -6.8 | -0.5 % | 337.4 | 340.6 | -3.2 | -0.9 % |
| Local | 717.4 | 707.5 | 10.0 | 1.4 % | 180.4 | 178.7 | 1.7 | 0.9 % |
| Domestic Long Distance | 554.8 | 581.4 | -26.6 | -4.6 % | 133.6 | 138.1 | -4.5 | -3.2 % |
| Intnl Long Distance | 13.3 | 10.1 | -3.25 | -32.2 % | 14.3 | 16.1 | -1.8 | -11.1 % |
| Broadcasting & Others | 103.0 | 96.4 | 6.6 | 6.9 % | 9.1 | 7.7 | 1.4 | 17.8 % |
Leased line service revenue decreased KRW 6.8 billion (0.5%) and KRW 3.2 billion (0.9%) year over year and quarter over quarter, respectively. It is mainly due to severe competition and introduction of alternative services, such as metro-Ethernet and IP-VPN.
However, local and broadcasting leased line revenue slightly increased year over year on the back of 5~10% tariff raise in services providing speed less than 1.5Mbps.
6. Other Data Revenue
(KWR billion)
| FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | |||
|---|---|---|---|---|---|---|---|---|
| Sector | Amount | % | Amount | % | ||||
| Other Data Revenue | 209.4 | 262.9 | -53.5 | -20.4 % | 55.5 | 50.1 | 5.4 | 10.9 % |
| Dial-up (014xy) | 26.5 | 99.5 | -73.0 | -73.4 % | 4.1 | 5.4 | -1.4 | -25.1 % |
| Packet Data | 55.1 | 76.5 | -21.4 | -28.0 % | 11.6 | 13.1 | -1.6 | -11.9 % |
| EDI | 27.9 | 17.2 | 10.7 | 62.4 % | 11.9 | 5.3 | 6.6 | 123.1 % |
| Others (ATM etc.) | 99.8 | 69.7 | 30.2 | 43.3 % | 28.0 | 26.2 | 1.8 | 6.8 % |
Dial-up revenue continued to decrease due to the migration to the broadband service.
However, EDI and other data services showed an increasing trend both yearly and quarterly.
7. Wireless Revenue
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Total Wireless Revenue | 662.5 | 518.2 | 144.3 | 27.9 % | 164.0 | 167.8 | -3.8 | -2.2 % |
| PCS Resale | 664.3 | 458.4 | 205.9 | 44.9 % | 167.0 | 167.3 | -0.3 | -0.2 % |
| PCS Service | 413.2 | 280.3 | 132.9 | 47.4 % | 110.3 | 108.1 | 2.2 | 2.0 % |
| Handset Sales | 247.4 | 178.1 | 69.4 | 39.0 % | 53.0 | 59.2 | -6.2 | -10.4 % |
| Other Wireless Revenue | -1.8 | 59.8 | -61.6 | -103.0 % | -3.0 | 0.5 | -3.5 | -730.6 % |
| PCS Resale Expense | 403.8 | 280.7 | 123.1 | 43.87 % | 94.1 | 95.5 | -1.4 | -1.5 % |
| Cost of Handset | 241.1 | 186.4 | 54.8 | 29.4 % | 47.5 | 55.1 | -7.7 | -13.9 % |
| Interconnection Fee to KTF | 162.7 | 94.3 | 68.4 | 72.5 % | 46.7 | 40.4 | 6.3 | 15.6 % |
| Resale subscribers (000) | 1,422.0 | 1,147.0 | 275 | 24.0 % | 1,422.0 | 1,391.0 | 31.0 | 2.2 % |
The wireless revenue increased KRW 144.3 billion (27.9%) to KRW 662.5 billion as 275,000 wireless subscriber net addition gained in 2002.
However, quarter over quarter handset sales decreased KRW 6.2 billion (10.4%) as net addition slowed down in 4Q.
8. Satellite Revenue
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Total Satellite Revenue | 124.2 | 101.0 | 23.3 | 23.0 % | 23.9 | 39.6 | -15.8 | -39.8 % |
The satellite revenue increased KRW 23.3 billion (23.0%) year over year due to KDB service expansion.
However, quarter over quarter revenue decreased KRW 15.8 billion (39.8%) due to seasonality in demands.
9. Other Revenue
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Other Revenue | 343,3 | 311.2 | 32.1 | 10.3 % | 181.0 | 79.0 | 102.0 | 129.1 % |
| SI/NI | 255.9 | 198.7 | 57.3 | 28.8 % | 168.1 | 57.3 | 110.7 | 193.2 % |
Other revenue is comprised of System Integration and Network Integration (SI/NI), local and international telex, yellow page and so forth.
In 2002 SI/NI revenue increased KRW 57.3 billion (28.8%) year over year as KT won more projects.
B. Operating Expenses
- Labor Expense
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Total Labor Expense | 2,687.0 | 2,573.2 | 113.8 | 4.4 % | 644.3 | 682.6 | -38.4 | -5.6 % |
| Salaries & Wages | 1,881.9 | 1,778.0 | 103.8 | 5.8 % | 447.8 | 447.2 | 0.6 | 0.1 % |
| Salaries | 1,076.7 | 1,032.6 | 44.1 | 4.3 % | 271.7 | 269.8 | 1.9 | 0.7 % |
| Wages | 802.1 | 720.2 | 81.8 | 11.4 % | 175.2 | 176.6 | -1.4 | -0.8 % |
| *Performance-based Bonus | 510.5 | 450.1 | 60.4 | 13.4 % | 132.8 | 87.2 | 45.6 | 52.2 % |
| Miscellaneous | 3.2 | 25.3 | -22.1 | -87.5 % | 0.9 | 0.8 | 0.1 | 13.7 % |
| Employee Benefits | 558.7 | 508.9 | 49.9 | 9.8 % | 132.9 | 177.9 | -45.0 | -25.3 % |
| Bonus | 142.0 | 137.6 | 4.5 | 0 % | 0.0 | 71.6 | -71.6 | -100.0 % |
| Retirement Allowance | 246.4 | 286.3 | -39.9 | -13.9 % | 63.6 | 57.5 | 6.1 | 10.6 % |
The total labor expense increased KRW 113.8 billion (4.4%) year over year. Main reasons for the increase are due to regular promotions and a 3.1% salary increase according to the salary agreement with the labor union in 2002 and.
On the other hand, the total labor expense decreased KRW 38.4 billion (5.6%) quarter over quarter, due to the time difference in yearly bonus payment ( refer to the bonus payment schedule below )
*** Annual Bonus Payment Schedule (100% equals to roughly one months basic salary)
| Term — 1Q | Yr 2002 — Performance-Based Bonus Lunar New Year Bonus | 50% 100% | Yr 2001 — Performance-Based Bonus Lunar New Year Bonus | 100% 100% |
|---|---|---|---|---|
| 2Q | Performance-Based Bonus | 250% | Performance-Based Bonus | 185% |
| 3Q | Performance-Based Bonus Lunar Thanksgiving Bonus | 100% 100% | Performance-Based Bonus Lunar Thanksgiving Bonus | 100% 100% |
| 4Q | Performance-Based Bonus | 150% | Performance-Based Bonus | 100% |
- Depreciation
Depreciation cost decreased KRW 327.4 billion (11.0%) year over year due to efficient management on capital investments. However, depreciation cost increased 101.5 billion (15.3%) quarter over quarter, due to more construction completed in 4Q.
- Commissions
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Total Commission | 576.0 | 464.9 | 111.2 | 23.9 % | 160.2 | 142.5 | 17.7 | 12.4 % |
| Commission to KT Linkus | 132.1 | 148.1 | -16.0 | -10.8 % | 25.5 | 36.1 | -10.6 | -29.44 % |
| Commission to 114 (KOIS, KOID) | 121.4 | 58.0 | 63.4 | 109 % | 31.6 | 30.5 | 1.0 | 3.3 % |
| Commission to Call Center | 77.9 | 61.5 | 16.3 | 26.6 % | 24.5 | 20.2 | 4.2 | 20.9 % |
| Commission to Hitel | 8.8 | 2.4 | 6.3 | 263.2 % | 4.1 | 2.7 | 1.3 | 48.5 % |
| Commission to KM Credit | 25.3 | 14.1 | 11.2 | 79.5 % | 2.6 | 7.9 | -5.3 | -67.1 % |
| Commission for Submarine Cable Maintenance | 8.7 | 7.4 | 1.3 | 17.5 % | 2.3 | 1.8 | 0.5 | 29.0 % |
| Commission for Telex Delivery | 11.0 | 10.0 | 1.1 | 10.7 % | 2.3 | 2.3 | 0.0 | 0.3 % |
| Others | 190.9 | 163.4 | 27.5 | 16.9 % | 67.3 | 40.9 | 26.4 | 92.2 % |
The total commission expense increased by KRW 111.2 billion (23.9%), and KRW 17.7 billion (12.4%) year over year and quarter over quarter, respectively. It is driven by a number of outsourcing increase including call center, Hitel, KM Credit, and submarine cable maintenance, and telex delivery.
- Sales Promotion
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Sales Promotion | 481.4 | 328.6 | 152.8 | 46.5 % | 255.7 | 82.3 | 173.4 | 210.7 % |
| Promotion | 223.9 | 200.4 | 23.5 | 11.7 % | 94.1 | 55.0 | 39.1 | 71.1 % |
| Sales Commission | 71.1 | 47.5 | 23.6 | 49.7 % | 35.5 | 13.8 | 21.7 | 157.1 % |
| Allowance | 186.4 | 80.7 | 105.7 | 130.9 % | 126.0 | 13.5 | 112.5 | 834.8 % |
Total sales promotion expense increased KRW 152.8 billion (46.5%) year over year to 481.4 billion.
Promotion expense increased KRW 23.5 billion (11.7%) year over year due to more active promotion for VDSL and W-LAN service. Sales commission expense increased
KRW 23.6 billion (49.7%) year over year, because of a change in sales commission payment method to external sales distribution channel.
Allowance for doubtful accounts increased KRW 105.7 billion (130.9%) year over year, due to an increase in delinquent accounts receivable as economy shows downturn.
Repairs & Maintenance
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Repairs & Maintenance | 323.4 | 308.8 | 14.6 | 4.7 % | 92.7 | 91.5 | 1.1 | 1.3 % |
Repairs and maintenance cost increased KRW 14.6 billion (4.7%) year over year, due to an increase in installation costs of telephone and broadband, and natural disaster repairing cost.
- Cost of Goods Sold
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Cost of Goods Sold | 268.2 | 225.9 | 42.4 | 18.8 % | 51.5 | 57.3 | -5.7 | -10 % |
| PCS Handset Cost | 241.1 | 186.4 | 54.8 | 29.4 % | 47.5 | 55.1 | -7.7 | -13.9 % |
| Wireless LAN Card | 3.7 | 0.0 | 1.6 | | 2.1 | 1.6 | 0.5 | 32.7 % |
| Others | 23.4 | 39.5 | -16.07 | -40.7 % | 2.01 | 0.59 | 1.4 | 239 % |
The cost of goods sold increased KRW 42.4 billion (18.8%) year over year, as net addition of PCS resale and W-LAN increased by 275,000 and 118,521, respectively.
However, the cost of goods sold decreased KRW 5.7 billion (10%) quarter over quarter due to a decrease in PCS resale net addition.
- Cost of Service
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Cost of Service Provided | 2,064.2 | 2,384.9 | -320.8 | -13.5 % | 656.2 | 513.8 | 142.4 | 27.7 % |
| Cost of Service | 424.4 | 349.6 | 74.8 | 21.4 % | 132.7 | 100.1 | 32.6 | 32.5 % |
| PCS Resale Network Cost to KTF | 162.7 | 94.3 | 68.4 | 72.5 % | 46.7 | 40.4 | 6.3 | 15.6 % |
| B&A Service Cost | 78.8 | 87.7 | -14.9 | -17.0 % | 16.0 | 17.7 | -1.7 | -9.4 % |
| Others | 188.9 | 167.5 | 21.3 | 12.7 % | 70.0 | 42.0 | 28.0 | 66.5 % |
| SI/NI Service Cost | 276.4 | 190.2 | 86.3 | 45.4 % | 190.1 | 56.1 | 134.0 | 238.7 % |
| International Settlement Cost | 177.9 | 200.0 | -22.0 | -11.0 % | 42.5 | 50.5 | -7.5 | -15.0 % |
| LM Interconnection Cost | 1,185.4 | 1,645.2 | -459.8 | -27.9 % | 290.9 | 307.5 | -16.7 | -5.4 % |
In spite of an increase in PCS resale network cost to KTF by KRW 68.4 billion (72.5%) and SI/NI service cost by KRW 86.3 billion (45.4%), the total cost of service provided decreased KRW 320.8 billion (13.5%) year over year. LM interconnection cost also decreased KRW 459.8 billion (27.9%) year over year, and KRW 307.5 billion (5.4%) quarter over quarter due to 22% LM interconnection rate cut.
- Non-Operating Income
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Non-Operating Income | 1,783.2 | 1,013.6 | 769.5 | 75.9 % | 1,035.7 | 146.0 | 889.7 | 609.5 % |
| Gains on Disp. Of Inv. Assets | 1,154.4 | 615.5 | 538.9 | 87.6 % | 908.3 | 0 | 908.3 | |
| Interest Income | 55.1 | 48.7 | 6.4 | 13.1 % | 14.2 | 12.0 | 2.2 | 18.1 % |
| FX Transaction Gain | 30.5 | 6.8 | 23.6 | 346.8 % | 15.1 | 5.8 | 9.3 | 160.4 % |
| FX Translation Gain | 115.3 | 11.8 | 103.5 | 876.5 % | 16.3 | -27.6 | 43.9 | -158.9 % |
| USO Fund | 145.5 | 72.6 | 72.9 | 100.4 % | 7.8 | 102.8 | -95.0 | -92.4 % |
| Others | 282.4 | 258.2 | 24.3 | 9.4 % | 74.1 | 53.0 | 21.1 | 39.9 % |
The non-operating income increased KRW 769.5 billion (75.9%) year over year, mainly aided by gains on the disposal of 5.5 million SKT shares in April and December 2002 and foreign exchange (FX) gains due to the depreciation of Korean won.
Due to the increase in USO compensation rate announced on July 30 th , 2002 (from 10.9% in 2000 to 50% in 2002), USO compensation increased KRW 72.9 billion (100.4%) year over year.
Gain on disposal of SKT shares:
| Sector | 2002 2Q | 2002 4Q | 2003 1Q | ||
|---|---|---|---|---|---|
| Number of shares | 1,000,000 | 4,457,635 | (5%) | 3,809,288 | (4.27%) |
| Book value | 18,868 | 18,868 | 18,868 | ||
| Amount of sales (bn) | 265.7 | 1,020.8 | 838.0 | ||
| Gain on sales (bn) | 246.1 | 908.3 | 794.5 | ||
| Tax paid (bn) | 69.2 | 231.6 | 202.6 | ||
| Portion affecting net income | 176.9 | 676.7 | 591.9 |
- Non-Operating Expenses
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Non-operating Expense | 921.7 | 1,102.6 | -180.9 | -16.4 % | 277.6 | 179.7 | 97.8 | 54.4 % |
| Interest Expense | 418.0 | 423.6 | -5.6 | -1.3 % | 105.8 | 111.7 | -5.9 | -5.3 % |
| FX Transaction Loss | 24.8 | 8.9 | 15.9 | 177.3 % | 3.8 | 11.3 | -7.5 | -66.2 % |
| FX Translation Loss | 18.6 | 38.6 | -20.0 | 51.7 % | 3.4 | -15.3 | 18.7 | 122.4 % |
| Loss on Equity Method | 106.8 | 132.6 | -25.8 | -19.5 % | 49.5 | 26.0 | 23.6 | 90.7 % |
| Loss on Disp. Of Inv. Assets | 85.8 | 196.2 | -110.4 | -56.3 % | 42.3 | 10.6 | 31.6 | 298.0 % |
| Others | 267.7 | 302.7 | -35.0 | -11.6 % | 72.7 | 35.4 | 37.3 | 105.2 % |
Non-operating expense decreased KRW 180.9 billion (16.4%) year over year, due to a decrease in loss on equity method as operational performance of subsidiaries improved.
In addition, loss on disposition of tangible assets decreased KRW 110.4 billion (56.3%) year over year, due to a decrease in disposal or replacement of tangible assets compared to year 2001.
- Net Income
(KRW billion)
| Sector | FY2002E | FY2001 | 2002Y/2001Y | 2002 4Q | 2002 3Q | 2002 4Q/2002 3Q | ||
|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||||
| Income Before Tax | 2,604.1 | 1,366.2 | 1,238.0 | 90.6 % | 855.7 | 390.1 | 465.6 | 17.9 % |
| Income Tax | 653.7 | 279.0 | 374.7 | 134.3 % | 200.8 | 84.4 | 116.4 | 137.9 % |
| Effective Tax Rate | 25.1 % | 20.4 % | 4.7%P | 23.5 % | 21.6 % | 3.5%P | ||
| Net Income | 1,950.4 | 1,087.2 | 863.2 | 79.4 % | 654.8 | 305.7 | 349.1 | 114.2 % |
| Gain on SKT shares disposition | 864.6 | 489.8 | 374.8 | 76.5 % | 676.7 | 0 | 676.7 | |
| Normalized Net Income | 1,085.8 | 597.4 | 488.4 | 81.8 % | -21.9 | 305.7 | -327.6 | -107.2 % |
Net income increased substantially by KRW 863.2 billion (79.4%) year over year to KRW 1,950.4 billion, with a support from CAPEX savings, SKT share disposal, USO compensation rate increase and loss on disposition of tangible assets decrease.
Normalized net income, excluding gains on SKT share disposal, also increased KRW 488.4 billion (81.8%) to KRW 1.086 trillion.
C. Balance Sheet Highlights
- Assets
Total assets decreased KRW 832.6 billion (3.6%) year over year, mainly due a substantial reduction in investment assets caused by equity swap with SKT, and sale of KTICOM shares to KTF.
Long-term loan increased KRW 913.0 billion (415.8%), because a loan was given to ESOA (Employee Stock Ownership Association) during the course of privatization in May 2002.
- Liabilities
Although refundable deposit decreased substantially by KRW 817.2 billion (34.7%) as a number of non-refundable subscribers increased, the total liabilities increased KRW 3.165 trillion (28.6%) to KRW 14.222 trillion. The 28.6% increase was due to the issuance of Bonds with Warrants (US$0.5 billion) and Convertible Bonds (Foreign: US$131.8 billion, Domestic: KRW 1,397.3 billion) during the course of privatization.
- Shareholders Equity
Despite an increase in retained earnings by KRW 1.570 trillion (23.9%), the total shareholders equity decreased KRW 3.997 trillion (33.9%) to KRW 7. 796 trillion. It was due to a 249.7% year over year decrease in capital adjustment caused by SKT share disposal and acquisition of treasury shares.
IV. Summary Statistics
| Dec-00 | Dec-01 | Jan-02 | Feb-02 | Mar-02 | Apr-02 | May-02 | Jun-02 | Jul-02 | Aug-02 | Sep-02 | Oct-02 | Nov-02 | Dec-02 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Broadband Subs | 1,729,320 | 3,858,194 | 3,907,000 | 3,963,150 | 4,076,799 | 4,161,658 | 4,254,851 | 4,333,268 | 4,388,929 | 4,465,225 | 4,558,006 | 4,673,936 | 4,796,191 | 4,922,535 |
| Net Addition | 1,719,021 | 2,128,874 | 48,806 | 56,150 | 113,649 | 84,859 | 93,193 | 78,417 | 55,661 | 76,296 | 92,761 | 115,930 | 122,255 | 126,344 |
| Megapass ADSL | 1,322,531 | 3,340,526 | 3,364,673 | 3,439,721 | 3,549,177 | 3,629,707 | 3,713,743 | 3,782,437 | 3,838,349 | 3,910,083 | 3,998,405 | 4,110,197 | 4,226,268 | 4,347,742 |
| ADSL-Premium | 462,747 | 626,293 | 625,330 | 627,309 | 630,101 | 630,698 | 635,444 | 636,634 | 634,397 | 635,738 | 640,599 | 644,708 | 647,879 | 649,834 |
| ADSL-Lite | 851,694 | 2,640,718 | 2,680,450 | 2,729,068 | 2,829,410 | 2,903,354 | 2,974,527 | 3,031,436 | 3,082,898 | 3,154,978 | 3,234,420 | 3,337,131 | 3,445,123 | 3,561,119 |
| Special (1) | 218 | 383 | 413 | |||||||||||
| Other ADSL Multi-IP | 8,090 | 73,515 | 78,893 | 83,344 | 89,666 | 95,655 | 103,772 | 114,367 | 121,054 | 119,367 | 123,386 | 128,140 | 132,883 | 136,376 |
| * VDSL applied subs (2) | 8,566 | 25,557 | 60,000 | 110,000 | 147,000 | |||||||||
| Megapass B&A | 397,144 | 441,765 | 434,464 | 428,165 | 421,788 | 416,386 | 411,454 | 407,271 | 400,109 | 392,477 | 384,383 | 374,547 | 364,086 | 350,216 |
| Megapass Satellites | 9,036 | 12,020 | 12,051 | 11,960 | 11,872 | 11,816 | 12,092 | 11,966 | 6,271 | 6,159 | 6,108 | 6,087 | 6,146 | 6,029 |
| Megapass BWLL | 492 | 989 | 977 | 967 | 964 | 948 | 941 | 894 | 798 | 793 | 785 | 754 | 698 | 604 |
| Megapass Ntopia | 117 | 62,894 | 74,836 | 82,337 | 92,998 | 102,801 | 116,621 | 130,680 | 143,402 | 155,713 | 168,325 | 182,351 | 198,993 | 217,944 |
| Broadband ARPU | 39,403 | 30,159 | 29,637 | 30,066 | 31,649 | 30,430 | 30,561 | 30,476 | 30,342 | 30,171 | 29,800 | 29,406 | 29,160 | 29,037 |
| Dec-00 | Dec-01 | Jan-02 | Feb-02 | Mar-02 | Apr-02 | May-02 | Jun-02 | Jul-02 | Aug-02 | Sep-02 | Oct-02 | Nov-02 | Dec-02 | |
| WLAN Subs | 621 | 8,124 | 9,695 | 19,689 | 55,261 | 71,829 | 91,102 | 118,521 | ||||||
| Megapass Nespot (Residential) | 7,607 | 6,040 | 14,093 | 25,319 | 32,409 | 39,209 | 45,699 | |||||||
| Kornet Nespot(Corporates) (5) | 517 | 558 | 468 | 1,754 | 2,085 | 2,347 | 2,591 | |||||||
| Nespot ID Only | 3,097 | 5,138 | 28,188 | 37,335 | 49,546 | 70,231 | ||||||||
| Dec-00 | Dec-01 | Jan-02 | Feb-02 | Mar-02 | Apr-02 | May-02 | Jun-02 | Jul-02 | Aug-02 | Sep-02 | Oct-02 | Nov-02 | Dec-02 | |
| Bizmeka Subs | 2,276 | 2,594 | 4,290 | 7,361 | 18,841 | 36,131 | 44,000 | 41,154 | 67,101 | 63,392 | 59,951 | 54,680 | 51,675 | |
| Dec-00 | Dec-01 | Jan-02 | Feb-02 | Mar-02 | Apr-02 | May-02 | Jun-02 | Jul-02 | Aug-02 | Sep-02 | Oct-02 | Nov-02 | Dec-02 | |
| Leased Lines | 592,400 | 593,832 | 601,082 | 602,680 | 596,961 | 599,048 | 599,073 | 602,223 | 603,378 | 602,313 | 600,704 | 600,662 | 600,072 | 599,136 |
| Local leased line | 532,264 | 538,308 | 545,157 | 547,226 | 543,268 | 545,494 | 546,544 | 549,688 | 551,361 | 551,113 | 549,750 | 549,569 | 549,381 | 548,509 |
| DLD leased line | 59,763 | 55,160 | 55,561 | 55,093 | 53,327 | 53,188 | 52,163 | 52,168 | 51,652 | 50,835 | 50,587 | 50,724 | 50,320 | 50,256 |
| International leased line (6) | 275 | 265 | 266 | 264 | 267 | 268 | 267 | 268 | 264 | 263 | 264 | 265 | 266 | 264 |
| Broadcasting leased line | 98 | 99 | 98 | 97 | 99 | 98 | 99 | 99 | 101 | 102 | 103 | 104 | 105 | 107 |
| Internet Leased Lines | 26,095 | 28,381 | 28,105 | 28,336 | 28,211 | 28,273 | 29,159 | 29,531 | 29,725 | 30,094 | 30,744 | 31,882 | 33,408 | 35,350 |
| Dec-00 | Dec-01 | Jan-02 | Feb-02 | Mar-02 | Apr-02 | May-02 | Jun-02 | Jul-02 | Aug-02 | Sep-02 | Oct-02 | Nov-02 | Dec-02 | |
| KT PCS Resale Subs | 725 | 1,147 | 1,128 | 1,201 | 1,297 | 1,252 | 1,295 | 1,366 | 1,342 | 1,344 | 1,391 | 1,403 | 1,417 | 1,422 |
| CDMA 1x Subs (000) | 52 | 54 | 164 | 299 | 279 | 353 | 451 | 466 | 508 | N/a | 644 | 689 | 721 | |
| Dec-00 | Dec-01 | Jan-02 | Feb-02 | Mar-02 | Apr-02 | May-02 | Jun-02 | Jul-02 | Aug-02 | Sep-02 | Oct-02 | Nov-02 | Dec-02 | |
| Fixed-line Subs (000) (3) | 21,524 | 21,897 | 21,959 | 21,967 | 22,022 | 22,054 | 22,105 | 22,109 | 22,114 | 22,147 | 22,201 | 22,266 | 22,313 | 22,327 |
| Residential users (%) | 73 % | 72 % | 72 % | 72 % | 72 % | 72 % | 72 % | 72 % | 72 % | 72 % | 72 % | 72 % | 72 % | 72 % |
| Non-refundable users (%) | 32 % | 48 % | 49 % | 52 % | 53 % | 55 % | 58 % | 61 % | 62 % | 63 % | 64 % | 65 % | 65 % | 66 % |
| Fixed-line installed (000) | 24,383 | 24,854 | 24,870 | 24,881 | 24,886 | 24,890 | 24,916 | 24,969 | 25,037 | 25,025 | 24,973 | 25,082 | 25,075 | 25,062 |
| Digital(%) | 79.7 % | 87.5 % | 87.5 % | 87.5 % | 87.5 % | 87.5 % | 87.5 % | 87.7 % | 88.1 % | 88.3 % | 88.9 % | 89.4 % | 89.7 % | 90.4 % |
| Fiber optic (km) | 111,728 | 118,815 | 118,567 | 119,071 | 119,557 | 120,168 | 120,770 | 121,410 | 122,130 | 122,863 | 131,244 | 120,252 | 124,051 | 126,732 |
| Caller ID Users (000) | | 848 | 948 | 1,048 | 1,174 | 1,271 | 1,388 | 1,506 | 1,609 | 1,702 | 1,740 | 1,816 | 1,883 | 1,946 |
| VAS users (000) | 8,548 | 8,948 | 8,949 | 8,969 | 8,984 | 8,985 | 8,993 | 9,007 | 9,026 | 9,042 | 9,071 | 9,098 | 9,117 | 9,113 |
| Dec-00 | Dec-01 | Jan-02 | Feb-02 | Mar-02 | Apr-02 | May-02 | Jun-02 | Jul-02 | Aug-02 | Sep-02 | Oct-02 | Nov-02 | Dec-02 | |
| Population (000) | 47,008 | 47,343 | 47,640 | 47,640 | 47,640 | 47,640 | 47,640 | 47,640 | 47,640 | 47,640 | 47,640 | 47,640 | 47,640 | 47,640 |
| Number of Household | 15,765 | 16,081 | 16,242 | 16,242 | 16,242 | 16,242 | 16,242 | 16,242 | 16,242 | 16,242 | 16,242 | 16,242 | 16,242 | 16,242 |
| Broadband Market Share (4) | ||||||||||||||
| KT | 44.7 % | 49.4 % | 49.2 % | 49.0 % | 49.1 % | 49.0 % | 49.6 % | 49.7 % | 48.2 % | 48.2 % | 48.3 % | 48.8 % | 49.3 % | 49.9 % |
| Hanaro | 28.5 % | 26.4 % | 26.7 % | 26.9 % | 27.0 % | 27.2 % | 27.6 % | 27.8 % | 30.0 % | 30.2 % | 30.2 % | 30.0 % | 29.7 % | 29.1 % |
| Thrunet | 19.7 % | 16.7 % | 16.9 % | 17.0 % | 16.9 % | 16.6 % | 15.3 % | 14.9 % | 14.3 % | 14.1 % | 13.9 % | 13.6 % | 13.4 % | 13.2 % |
| Others | 7.1 % | 7.5 % | 7.2 % | 7.1 % | 7.0 % | 7.2 % | 7.5 % | 7.6 % | 7.5 % | 7.5 % | 7.6 % | 7.6 % | 7.7 % | 7.8 % |
| KT Leased Line Market Share | ||||||||||||||
| KT | 70.9 % | 70.0 % | 70.6 % | 70.6 % | 70.6 % | 70.8 % | 71.1 % | 70.8 % | 70.7 % | 70.7 % | N/A | 70.7 % | 70.7 % | 70.7 % |
| Fixed-line Market Share | ||||||||||||||
| Local M/S (subscriber base) | 98.3 % | 96.9 % | 96.8 % | 96.6 % | 96.5 % | 96.3 % | 96.2 % | 96.1 % | 96.0 % | 95.9 % | 95.8 % | 95.7 % | 95.6 % | 96.0 % |
| DLD M/S (revenue base) | 85.6 % | 84.5 % | 84.4 % | 84.5 % | 84.7 % | 84.7 % | 84.8 % | 85.0 % | 85.0 % | 84.8 % | 84.9 % | 84.9 % | 85.0 % | |
| ILD (revenue base) | 64.3 % | 67.1 % | 68.1 % | 66.7 % | 66.7 % | 66.7 % | 66.9 % | 67.2 % | 66.6 % | 66.6 % | 66.4 % | 66.2 % | 66.5 % | |
20
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: February 5, 2003
| KT Corporation | |
|---|---|
| By: | /s/ Jeong - Soo Suh |
| Name: Jeong - Soo Suh Title: Vice President and Chief Financial Officer |