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KT CORP — Interim / Quarterly Report 2011
Jan 28, 2011
30640_ffr_2011-01-28_6a2e208e-469f-4de0-a3c3-9c91a4019e4e.zip
Interim / Quarterly Report
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6-K 1 d6k.htm FORM 6-K Form 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of January 2011
Commission File Number 1-14926
KT Corporation
(Translation of registrants name into English)
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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant 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
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
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: January 28, 2011 | |
|---|---|
| KT Corporation | |
| By: | /s/ Thomas Bum Joon Kim |
| Name: | Thomas Bum Joon Kim |
| Title: | Managing Director |
| By: | /s/ Young Jin Kim |
| Name: | Young Jin Kim |
| Title: | Director |
January 28, 2011
4th Quarter 2010
Preliminary Earnings Commentary
(KRX : 030200 / NYSE : KT)
Disclaimer
This material contains estimated information of unaudited preliminary financial and operating data of KT Corporation (KT or the company) for the fourth quarter of 2010 and forward-looking statements with respect to the financial condition, results of operations and business of KT. 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 plans, 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.
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 financial statements and report for the fourth quarter of 2010 will be filed with the Financial Supervisory Service(FSS) and the Korea Exchange(KRX) by March 31, 2011.
If you have any questions in connection with the preliminary earnings, please contact Investor Relations Department of KT.
Tel : 82-31-727-1911~3
Fax : 82-31-727-0159
E-mail: [email protected]
2010 4Q KT Earnings Release - Guidance version
The unaudited business and financial results of the merged company contained in this material prepared in accordance with Korean GAAP is for the sole convenience of investors and analysts.
(2009 figures are results as of KT merged on January 1, 2009.)
- Financial Highlights (unit : KRW bn)
| A. — Operating Revenue | 5,191.4 | 4,747.6 | 9.3 % | 5,191.4 | 5,233.4 | -0.8 % | 20,233.5 | 18,955.8 | 6.7 % |
|---|---|---|---|---|---|---|---|---|---|
| Service Revenue | 3,908.5 | 3,893.2 | 0.4 % | 3,908.5 | 3,997.6 | -2.2 % | 15,732.6 | 15,434.1 | 1.9 % |
| Sales of Merchandise | 1,282.9 | 854.4 | 50.1 % | 1,282.9 | 1,235.8 | 3.8 % | 4,500.9 | 3,521.7 | 27.8 % |
| Wireless | 2,919.0 | 2,468.2 | 18.3 % | 2,919.0 | 2,925.6 | -0.2 % | 11,084.5 | 9,660.9 | 14.7 % |
| Telephone | 1,051.5 | 1,150.8 | -8.6 % | 1,051.5 | 1,087.6 | -3.3 % | 4,388.6 | 4,852.7 | -9.6 % |
| Internet | 707.3 | 648.5 | 9.1 % | 707.3 | 676.0 | 4.6 % | 2,735.1 | 2,574.1 | 6.3 % |
| Data | 328.9 | 322.7 | 1.9 % | 328.9 | 326.9 | 0.6 % | 1,318.0 | 1,316.8 | 0.1 % |
| Real | |||||||||
| estate | 104.0 | 76.7 | 35.7 % | 104.0 | 144.6 | -28.1 % | 394.0 | 293.8 | 34.1 % |
| Others | 80.7 | 80.8 | -0.1 % | 80.7 | 72.6 | 11.2 % | 313.4 | 257.5 | 21.7 % |
| Operating Expense | 4,886.7 | 5,297.1 | -7.7 % | 4,886.7 | 4,638.9 | 5.3 % | 18,180.2 | 18,010.6 | 0.9 % |
| Labor | |||||||||
| expense | 574.5 | 1,498.5 | -61.7 % | 574.5 | 545.8 | 5.3 % | 2,351.9 | 3,517.2 | -33.1 % |
| Commission | 371.0 | 346.7 | 7.0 % | 371.0 | 332.2 | 11.7 % | 1,354.8 | 1,253.2 | 8.1 % |
| Sales | |||||||||
| promotion | 274.7 | 275.4 | -0.2 % | 274.7 | 273.5 | 0.4 % | 1,092.9 | 1,025.7 | 6.6 % |
| Sales | |||||||||
| commission | 406.2 | 398.4 | 2.0 % | 406.2 | 512.8 | -20.8 % | 1,757.4 | 1,957.2 | -10.2 % |
| Bad debt | |||||||||
| expense | 65.7 | 15.7 | 317.4 % | 65.7 | 29.3 | 123.9 % | 145.6 | 72.9 | 99.7 % |
| Depreciation | |||||||||
| & Amortization | 788.4 | 857.7 | -8.1 % | 788.4 | 717.3 | 9.9 % | 2,914.4 | 3,120.3 | -6.6 % |
| Advertising | 43.3 | 43.9 | -1.5 % | 43.3 | 36.8 | 17.7 % | 164.5 | 163.5 | 0.6 % |
| Repair & | |||||||||
| Maintenance | 61.4 | 55.0 | 11.8 % | 61.4 | 23.9 | 156.8 % | 142.7 | 147.9 | -3.5 % |
| Cost of goods | |||||||||
| sold | 1,233.0 | 828.1 | 48.9 % | 1,233.0 | 1,147.0 | 7.5 % | 4,288.3 | 3,145.9 | 36.3 % |
| Cost of | |||||||||
| service provided | 629.4 | 574.8 | 9.5 % | 629.4 | 618.3 | 1.8 % | 2,403.8 | 2,167.1 | 10.9 % |
| Research & | |||||||||
| Development | 84.0 | 80.5 | 4.3 % | 84.0 | 70.9 | 18.4 % | 278.7 | 237.2 | 17.5 % |
| Activation, | |||||||||
| Installation & A/S cost | 100.2 | 97.8 | 2.4 % | 100.2 | 96.9 | 3.3 % | 375.7 | 338.0 | 11.2 % |
| Others | 254.8 | 224.7 | 13.4 % | 254.8 | 234.1 | 8.8 % | 909.7 | 864.7 | 5.2 % |
| Operating Income | 304.7 | -549.5 | TB | 304.7 | 594.5 | -48.7 % | 2,053.3 | 945.2 | 117.2 % |
| EBITDA | 1,093.2 | 308.2 | 254.7 % | 1,093.2 | 1,311.7 | -16.7 % | 4,967.7 | 4,065.4 | 22.2 % |
| Non-operating Income | 143.0 | 152.2 | -6.0 % | 143.0 | 83.9 | 70.5 % | 573.1 | 856.6 | -33.1 % |
| Non-operating Expense | 312.7 | 236.0 | 32.5 % | 312.7 | 226.2 | 38.2 % | 1,109.4 | 1,092.6 | 1.5 % |
| Income before Income Taxes | 135.1 | -633.3 | TB | 135.1 | 452.1 | -70.1 % | 1,517.0 | 709.2 | 113.9 % |
| Income tax | 30.0 | -185.0 | 30.0 | 101.6 | -70.5 % | 345.1 | 104.1 | 231.5 % | |
| Net Income | 105.1 | -448.3 | TB | 105.1 | 350.6 | -70.0 % | 1,171.9 | 605.1 | 93.7 % |
| 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | 2010 | 2009 | YoY | |
| CAPEX | 1,238.8 | 1,471.6 | -15.8 % | 1,238.8 | 647.2 | 91.4 % | 3,057.2 | 2,958.7 | 3.3 % |
Sales of Merchandise consists of sales of handsets and others.
2
| B. — Total Assets | 24,101.0 | 24,342.5 | -1.0 | % | 24,101.0 | 24,394.4 | -1.2 | % |
|---|---|---|---|---|---|---|---|---|
| Current assets | 6,111.8 | 6,474.6 | -5.6 | % | 6,111.8 | 6,874.6 | -11.1 | % |
| Quick assets | 5,552.4 | 5,867.8 | -5.4 | % | 5,552.4 | 6,361.0 | -12.7 | % |
| Cash & cash equivalents | 935.1 | 1,574.6 | -40.6 | % | 935.1 | 1,732.4 | -46.0 | % |
| Accounts receivables | 3,635.5 | 3,491.1 | 4.1 | % | 3,635.5 | 3,702.6 | -1.8 | % |
| Inventories | 559.5 | 606.8 | -7.8 | % | 559.5 | 513.5 | 8.9 | % |
| Non-current assets | 17,989.2 | 17,867.9 | 0.7 | % | 17,989.2 | 17,519.9 | 2.7 | % |
| Investment | 1,510.6 | 1,274.7 | 18.5 | % | 1,510.6 | 1,519.8 | -0.6 | % |
| Investment stocks accounted in equity method | 1,299.6 | 1,081.0 | 20.2 | % | 1,299.6 | 1,314.4 | -1.1 | % |
| Available-for-sale securities | 81.3 | 60.3 | 34.8 | % | 81.3 | 65.4 | 24.2 | % |
| Tangible assets | 13,947.8 | 14,203.8 | -1.8 | % | 13,947.8 | 13,714.5 | 1.7 | % |
| Intangible assets | 1,138.0 | 1,206.6 | -5.7 | % | 1,138.0 | 1,036.1 | 9.8 | % |
| Others | 1,392.7 | 1,182.8 | 17.7 | % | 1,392.7 | 1,249.4 | 11.5 | % |
| Total Liabilities | 13,060.1 | 13,944.2 | -6.3 | % | 13,060.1 | 13,436.4 | -2.8 | % |
| Current liabilities | 6,112.8 | 5,684.3 | 7.5 | % | 6,112.8 | 6,164.4 | -0.8 | % |
| Current portion of LT debt | 1,940.4 | 1,024.7 | 89.4 | % | 1,940.4 | 2,184.2 | -11.2 | % |
| Current portion of LT accrued payables | 168.3 | 148.5 | 13.3 | % | 168.3 | 166.4 | 1.2 | % |
| Accounts payable | 1,231.8 | 1,350.1 | -8.8 | % | 1,231.8 | 1,576.9 | -21.9 | % |
| Others | 2,772.3 | 3,160.9 | -12.3 | % | 2,772.3 | 2,236.8 | 23.9 | % |
| Non-current liabilities | 6,947.3 | 8,259.9 | -15.9 | % | 6,947.3 | 7,272.0 | -4.5 | % |
| Bonds | 5,528.6 | 6,739.1 | -18.0 | % | 5,528.6 | 5,844.3 | -5.4 | % |
| Long-term borrowings | 28.3 | 63.1 | -55.1 | % | 28.3 | 30.9 | -8.4 | % |
| Long-term accounts payables | | 160.8 | -100.0 | % | | | ||
| Installation deposit | 616.1 | 696.7 | -11.6 | % | 616.1 | 634.3 | -2.9 | % |
| Others | 774.3 | 600.2 | 29.0 | % | 774.3 | 762.4 | 1.6 | % |
| Total Stockholders Equity | 11,040.9 | 10,398.3 | 6.2 | % | 11,040.9 | 10,958.0 | 0.8 | % |
| Common stock | 1,564.5 | 1,564.5 | 0.0 | % | 1,564.5 | 1,564.5 | 0.0 | % |
| Capital surplus | 1,449.8 | 1,448.6 | 0.1 | % | 1,449.8 | 1,449.6 | 0.0 | % |
| Retained earnings | 9,371.8 | 9,595.5 | -2.3 | % | 9,371.8 | 9,266.7 | 1.1 | % |
| Capital adjustment | -1,262.5 | -2,165.7 | -41.7 | % | -1,262.5 | -1,262.9 | 0.0 | % |
| Treasury stock | -955.1 | -956.2 | -0.1 | % | -955.1 | -955.1 | 0.0 | % |
| Gain/loss on disposal of treasury stock | -0.3 | -890.7 | -100.0 | % | -0.3 | -0.3 | 0.0 | % |
| Accumulated Other Comprehensive Income | -82.6 | -44.5 | 85.5 | % | -82.6 | -59.9 | 38.0 | % |
| Total interesting bearing debt | 7,665.7 | 8,136.3 | -5.8 | % | 7,665.7 | 8,225.9 | -6.8 | % |
| Net debt | 6,562.3 | 6,252.4 | 5.0 | % | 6,562.3 | 6,327.1 | 3.7 | % |
| Net debt (including LT A/P) | 6,730.6 | 6,561.7 | 2.6 | % | 6,730.6 | 6,493.5 | 3.7 | % |
| Debt/ equity ratio | 118.3 % | 134.1 % | -15.8 | %p | 118.3 % | 122.6 % | 4.3 | %p |
| Net debt/ equity ratio | 59.4 % | 60.1 % | -0.7 | %p | 59.4 % | 57.7 % | 1.7 | %p |
| Net debt/ equity ratio (including LT A/P) | 61.0 % | 63.1 % | -2.1 | %p | 61.0 % | 59.3 % | 1.7 | %p |
3
- Operating Results (unit : KRW bn)
| A. | Wireless Revenue | 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | 2010 | 2009 | YoY |
|---|---|---|---|---|---|---|---|---|---|---|
| Service revenue | 1,728.8 | 1,695.3 | 2.0 % | 1,728.8 | 1,766.4 | -2.1 % | 6,932.5 | 6,462.3 | 7.3 % | |
| Monthly base fee | 633.2 | 577.7 | 9.6 % | 633.2 | 642.2 | -1.4 % | 2,504.0 | 2,211.5 | 13.2 % | |
| Airtime charge | 358.5 | 436.5 | -17.9 % | 358.5 | 378.6 | -5.3 % | 1,559.6 | 1,714.1 | -9.0 % | |
| VAS others | 63.1 | 58.9 | 7.1 % | 63.1 | 67.6 | -6.8 % | 251.1 | 247.1 | 1.6 % | |
| Wireless data | 414.6 | 319.1 | 29.9 % | 414.6 | 371.6 | 11.6 % | 1,474.3 | 1,185.4 | 24.4 % | |
| Interconnection revenue | 175.6 | 214.8 | -18.3 % | 175.6 | 229.3 | -23.4 % | 842.4 | 840.5 | 0.2 % | |
| Activation fee | 30.5 | 23.7 | 28.7 % | 30.5 | 37.3 | -18.2 % | 130.9 | 113.9 | 14.9 % | |
| Others | 53.3 | 64.5 | -17.4 % | 53.3 | 39.7 | 34.5 % | 170.2 | 150.0 | 13.5 % | |
| Handset sales | 1,190.2 | 772.9 | 54.0 % | 1,190.2 | 1,159.2 | 2.7 % | 4,152.0 | 3,198.5 | 29.8 % | |
| 2,919.0 | 2,468.2 | 18.3 % | 2,919.0 | 2,925.6 | -0.2 % | 11,084.5 | 9,660.9 | 14.7 % | ||
| Monthly base fee | Total subscriber growth and rising high monthly fee subscribers resulted in YoY growth. However, increasing tariff discounts led to QoQ drop. | |||||||||
| Airtime charge | Expanded tariff discount rate plans such as Smart Sponsors caused 17.9% YoY drop. Annually, sharply growing high monthly fee flat rate subscribers led to 9% YoY | |||||||||
| decrease. | ||||||||||
| Wireless data | Surging data traffics from increasing adoption of Smartphones led to healthy QoQ and YoY growth. | |||||||||
| Interconnection revenue | Due to reflection of new interconnection rates, its revenue dropped temporarily. | |||||||||
| B. | Telephone Revenue | 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | 2010 | 2009 | YoY |
| Subscriber connection | 257.8 | 285.8 | -9.8 % | 257.8 | 262.8 | -1.9 % | 1,066.0 | 1,186.4 | -10.1 % | |
| Activation & Installation fee | 7.1 | 8.1 | -12.5 % | 7.1 | 7.0 | 0.5 % | 29.9 | 35.9 | -16.8 % | |
| Monthly base fee | 207.5 | 232.0 | -10.6 % | 207.5 | 210.0 | -1.2 % | 857.1 | 975.6 | -12.1 % | |
| Interconnection | 43.3 | 45.7 | -5.4 % | 43.3 | 45.8 | -5.4 % | 179.1 | 174.9 | 2.4 % | |
| Local | 137.7 | 164.0 | -16.1 % | 137.7 | 157.7 | -12.7 % | 632.2 | 756.7 | -16.5 % | |
| Local airtime charge | 74.7 | 105.7 | -29.3 % | 74.7 | 89.2 | -16.2 % | 365.1 | 464.8 | -21.4 % | |
| Local interconnection | 17.8 | 19.1 | -6.6 % | 17.8 | 18.5 | -3.4 % | 73.3 | 75.5 | -2.9 % | |
| Others | 45.2 | 39.3 | 15.0 % | 45.2 | 50.1 | -9.8 % | 193.8 | 216.4 | -10.5 % | |
| Domestic long distance | 72.9 | 103.1 | -29.3 % | 72.9 | 82.9 | -12.1 % | 341.8 | 446.9 | -23.5 % | |
| DLD airtime charge | 68.5 | 98.4 | -30.4 % | 68.5 | 78.4 | -12.6 % | 323.7 | 428.7 | -24.4 % | |
| DLD interconnection | 4.2 | 4.5 | -6.6 % | 4.2 | 4.4 | -2.8 % | 17.5 | 17.3 | 0.9 % | |
| Others | 0.2 | 0.2 | -25.4 % | 0.2 | 0.2 | -0.3 % | 0.7 | 0.9 | -24.4 % | |
| LM revenue | 228.5 | 266.4 | -14.2 % | 228.5 | 232.8 | -1.9 % | 956.1 | 1,153.9 | -17.1 % | |
| International long distance | 27.5 | 31.9 | -13.9 % | 27.5 | 27.5 | -0.3 % | 112.2 | 135.6 | -17.3 % | |
| International long distance settlement | 46.6 | 47.0 | -1.1 % | 46.6 | 53.1 | -12.4 % | 205.5 | 219.6 | -6.4 % | |
| VoIP | 105.1 | 81.4 | 29.1 % | 105.1 | 96.4 | 9.1 % | 380.2 | 261.0 | 45.7 % | |
| VAS | 94.9 | 83.6 | 13.5 % | 94.9 | 92.2 | 2.9 % | 360.7 | 328.9 | 9.7 % | |
| Public phones & 114 service | 33.1 | 38.1 | -13.2 % | 33.1 | 35.5 | -6.8 % | 141.1 | 154.6 | -8.7 % | |
| Others | 47.4 | 49.4 | -3.9 % | 47.4 | 46.6 | 1.9 % | 192.8 | 209.1 | -7.8 % | |
| 1,051.5 | 1,150.8 | -8.6 % | 1,051.5 | 1,087.6 | -3.3 % | 4,388.6 | 4,852.7 | -9.6 % | ||
| Local, DLD & LM | Weakening subscriber number and declining traffics resulted in YoY and QoQ drop. | |||||||||
| VoIP | Fast rising subscriber base resulted in YoY and QoQ growth. |
4
| C. | Internet Revenue | 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | 2010 | 2009 | YoY |
|---|---|---|---|---|---|---|---|---|---|---|
| Internet Access | 529.9 | 505.1 | 4.9 % | 529.9 | 504.0 | 5.1 % | 2,055.6 | 2,060.4 | -0.2 % | |
| Broadband | 473.2 | 463.1 | 2.2 % | 473.2 | 472.5 | 0.1 % | 1,880.9 | 1,905.5 | -1.3 % | |
| Nespot | 4.7 | 5.4 | -13.4 % | 4.7 | 4.7 | -0.6 % | 19.4 | 23.7 | -18.2 % | |
| WiBro | 49.4 | 35.4 | 39.7 % | 49.4 | 25.0 | 97.6 % | 148.7 | 127.0 | 17.1 % | |
| Others | 2.5 | 1.2 | 118.1 % | 2.5 | 1.7 | 48.0 % | 6.6 | 4.1 | 60.1 % | |
| Internet Application | 177.4 | 143.4 | 23.8 % | 177.4 | 172.0 | 3.1 % | 679.5 | 513.7 | 32.3 % | |
| IDC | 58.8 | 59.5 | -1.2 % | 58.8 | 59.1 | -0.4 % | 240.0 | 216.0 | 11.1 % | |
| bizmeka | 40.5 | 32.8 | 23.5 % | 40.5 | 43.1 | -6.0 % | 175.6 | 125.4 | 40.0 % | |
| IPTV | 60.3 | 33.3 | 80.8 % | 60.3 | 51.8 | 16.3 % | 192.9 | 99.4 | 94.0 % | |
| Others | 17.8 | 17.7 | 0.7 % | 17.8 | 18.0 | -1.1 % | 71.0 | 72.9 | -2.6 % | |
| 707.3 | 648.5 | 9.1 % | 707.3 | 676.0 | 4.6 % | 2,735.1 | 2,574.1 | 6.3 % | ||
| Broadband | Total subscriber gain led to QoQ and YoY growth. But ARPU erosion from increasing discounts for bundling and long-term contract subscribers caused annual revenue | |||||||||
| drop. | ||||||||||
| WiBro | Increasing WiBro-based device sales led to 97.6% QoQ YoY growth. | |||||||||
| IPTV | Expanding subscriber base, especially for Olleh TV Skylife, resulted in annual growth of 94% YoY. | |||||||||
| D. | Data Revenue | 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | 2010 | 2009 | YoY |
| Leased line | 180.8 | 186.2 | -2.9 % | 180.8 | 179.3 | 0.9 % | 733.1 | 767.2 | -4.4 % | |
| Local | 76.2 | 77.0 | -1.0 % | 76.2 | 74.5 | 2.3 % | 302.1 | 303.0 | -0.3 % | |
| Domestic long distance | 67.8 | 65.7 | 3.3 % | 67.8 | 67.8 | 0.1 % | 276.3 | 263.7 | 4.8 % | |
| International long distance | 3.8 | 6.4 | -40.2 % | 3.8 | 4.1 | -6.1 % | 21.2 | 26.5 | -19.9 % | |
| Broadcasting & others | 32.9 | 37.1 | -11.3 % | 32.9 | 32.9 | 0.0 % | 133.4 | 174.0 | -23.3 % | |
| Kornet | 61.3 | 59.9 | 2.4 % | 61.3 | 61.3 | 0.1 % | 244.1 | 249.4 | -2.1 % | |
| VPN | 28.0 | 22.8 | 22.9 % | 28.0 | 28.7 | -2.4 % | 106.2 | 75.2 | 41.2 % | |
| National network ATM | 7.0 | 10.3 | -31.4 % | 7.0 | 7.1 | -0.3 % | 29.5 | 64.8 | -54.5 % | |
| Satellite | 34.8 | 26.6 | 30.7 % | 34.8 | 34.8 | 0.0 % | 141.1 | 106.8 | 32.1 % | |
| Others | 17.0 | 17.0 | 0.0 % | 17.0 | 15.9 | 7.0 % | 63.9 | 53.3 | 20.1 % | |
| 328.9 | 322.7 | 1.9 % | 328.9 | 326.9 | 0.6 % | 1,318.0 | 1,316.8 | 0.1 % |
5
| E. | 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | 2010 | 2009 | YoY |
|---|---|---|---|---|---|---|---|---|---|
| Labor Expense | 574.5 | 1,498.5 | -61.7 % | 574.5 | 545.8 | 5.3 % | 2,351.9 | 3,517.2 | -33.1 % |
| Salaries & | |||||||||
| wages | 456.3 | 478.2 | -4.6 % | 456.3 | 454.3 | 0.4 % | 1,840.5 | 1,914.2 | -3.8 % |
| Provision for | |||||||||
| retirement | 42.0 | 905.2 | -95.4 % | 42.0 | 15.0 | 180.8 % | 207.6 | 1,079.0 | -80.8 % |
| Employee | |||||||||
| welfare | 76.3 | 115.2 | -33.8 % | 76.3 | 76.5 | -0.3 % | 303.8 | 524.1 | -42.0 % |
| Commission | 371.0 | 346.7 | 7.0 % | 371.0 | 332.2 | 11.7 % | 1,354.8 | 1,253.2 | 8.1 % |
| Sales Promotion | 274.7 | 275.4 | -0.2 % | 274.7 | 273.5 | 0.4 % | 1,092.9 | 1,025.7 | 6.6 % |
| Sales Commission | 406.2 | 398.4 | 2.0 % | 406.2 | 512.8 | -20.8 % | 1,757.4 | 1,957.2 | -10.2 % |
| Bad Debt Expenses | 65.7 | 15.7 | 317.4 % | 65.7 | 29.3 | 123.9 % | 145.6 | 72.9 | 99.7 % |
| Depreciation & Amortization | 788.4 | 857.7 | -8.1 % | 788.4 | 717.3 | 9.9 % | 2,914.4 | 3,120.3 | -6.6 % |
| Advertising | 43.3 | 43.9 | -1.5 % | 43.3 | 36.8 | 17.7 % | 164.5 | 163.5 | 0.6 % |
| Repair & Maintenance | 61.4 | 55.0 | 11.8 % | 61.4 | 23.9 | 156.8 % | 142.7 | 147.9 | -3.5 % |
| Cost of Goods Sold | 1,233.0 | 828.1 | 48.9 % | 1,233.0 | 1,147.0 | 7.5 % | 4,288.3 | 3,145.9 | 36.3 % |
| Cost of mobile | |||||||||
| handset sold | 1,150.1 | 724.2 | 58.8 % | 1,150.1 | 1,076.5 | 6.8 % | 3,963.1 | 2,802.1 | 41.4 % |
| Others | 82.9 | 103.9 | -20.2 % | 82.9 | 70.4 | 17.7 % | 325.1 | 343.8 | -5.4 % |
| Cost of Service Provided | 629.4 | 574.8 | 9.5 % | 629.4 | 618.3 | 1.8 % | 2,403.8 | 2,167.1 | 10.9 % |
| Cost of | |||||||||
| service | 184.2 | 150.9 | 22.1 % | 184.2 | 156.4 | 17.8 % | 649.1 | 536.7 | 21.0 % |
| International | |||||||||
| long distance settlement cost | 78.8 | 65.2 | 20.9 % | 78.8 | 71.9 | 9.7 % | 284.1 | 262.8 | 8.1 % |
| Interconnection expense | 298.3 | 306.3 | -2.6 % | 298.3 | 313.4 | -4.8 % | 1,222.5 | 1,204.2 | 1.5 % |
| Others | 68.1 | 52.4 | 30.0 % | 68.1 | 76.7 | -11.2 % | 248.1 | 163.5 | 51.7 % |
| Research & Development | 84.0 | 80.5 | 4.3 % | 84.0 | 70.9 | 18.4 % | 278.7 | 237.2 | 17.5 % |
| Activation, Installation & A/S Cost | 100.2 | 97.8 | 2.4 % | 100.2 | 96.9 | 3.3 % | 375.7 | 338.0 | 11.2 % |
| Others | 254.8 | 224.7 | 13.4 % | 254.8 | 234.1 | 8.8 % | 909.7 | 864.7 | 5.2 % |
| 4,886.7 | 5,297.1 | -7.7 % | 4,886.7 | 4,638.9 | 5.3 % | 18,180.2 | 18,010.6 | 0.9 % | |
| Labor Expense | Annually declined 33.1% YoY because of labour force reduction in 4Q09. | ||||||||
| Depreciation & Amortization | Increased quarterly Capex led to 9.9% QoQ rise. But, | ||||||||
| declining depreciable assets and resulted in 8.1% YoY drop. | |||||||||
| Cost of Goods Sold | Increased 48.9% QoQ mainly from escalating sales of smartphones. | ||||||||
| Cost of Service Provided | Interconnection expense declined QoQ and YoY after reflecting new rates. | ||||||||
| Marketing | |||||||||
| Cost | 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | 2010 | 2009 | YoY |
| Sales | |||||||||
| Promotion | 274.7 | 275.4 | -0.2 % | 274.7 | 273.5 | 0.4 % | 1,092.9 | 1,025.7 | 6.6 % |
| Sales | |||||||||
| Commission | 406.2 | 398.4 | 2.0 % | 406.2 | 512.8 | -20.8 % | 1,757.4 | 1,957.2 | -10.2 % |
| Advertising | 43.3 | 43.9 | -1.5 % | 43.3 | 36.8 | 17.7 % | 164.5 | 163.5 | 0.6 % |
| (Profits from mobile handset sold) | -40.1 | -48.7 | -17.7 % | -40.1 | -82.6 | -51.5 % | -188.8 | -396.4 | -52.4 % |
| 684.1 | 669.0 | 2.3 % | 684.1 | 740.5 | -7.6 % | 2,825.9 | 2,749.9 | 2.8 % | |
| Interconnection | |||||||||
| Expenses | 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | 2010 | 2009 | YoY |
| MM | 180.3 | 176.8 | 2.0 % | 180.3 | 180.4 | -0.1 % | 711.4 | 680.1 | 4.6 % |
| ML | 5.1 | 7.6 | -32.8 % | 5.1 | 7.2 | -28.7 % | 27.5 | 33.9 | -18.8 % |
| LM | 84.5 | 99.1 | -14.8 % | 84.5 | 100.7 | -16.2 % | 381.5 | 407.9 | -6.5 % |
| Others | 28.4 | 22.8 | 24.9 % | 28.4 | 25.1 | 13.5 % | 102.1 | 82.3 | 24.0 % |
| 298.3 | 306.3 | -2.6 % | 298.3 | 313.4 | -4.8 % | 1,222.5 | 1,204.2 | 1.5 % |
- Interconnection expenses may not move proportionally to voice traffic due to difference in estimation.
6
| F. — Interest
Income | 38.3 | 38.3 | 0.0 % | 38.3 | 34.5 | 10.8 % | 127.4 | 180.4 | -29.4 % |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Gain on
foreign currency transaction | 5.2 | 5.7 | -9.0 % | 5.2 | 4.5 | 15.4 % | 19.1 | 32.7 | -41.7 % |
| Gain on
foreign currency translation | 6.6 | 55.0 | -88.0 % | 6.6 | 51.4 | -87.1 % | 64.9 | 238.0 | -72.7 % |
| Gain on Equity
Method | 21.3 | 38.1 | -44.1 % | 21.3 | 30.3 | -29.7 % | 104.6 | 113.0 | -7.4 % |
| Gain on
disposal of tangible assets | 2.3 | 1.8 | 26.1 % | 2.3 | 0.2 | 1029.8 % | 13.5 | 5.3 | 156.1 % |
| Others | 69.3 | 13.2 | 425.2 % | 69.3 | -37.1 | NA | 243.5 | 287.2 | -15.2 % |
| Non-operating Income | 143.0 | 152.2 | -6.0 % | 143.0 | 83.9 | 70.5 % | 573.1 | 856.6 | -33.1 % |
| Interest
Expense | 123.7 | 132.2 | -6.5 % | 123.7 | 125.0 | -1.0 % | 504.9 | 499.5 | 1.1 % |
| Loss on
foreign currency transaction | 4.9 | 6.9 | -29.5 % | 4.9 | 4.6 | 5.8 % | 21.1 | 37.5 | -43.8 % |
| Loss on
foreign currency translation | 5.6 | -2.6 | NA | 5.6 | -101.3 | NA | 31.4 | 17.2 | 82.4 % |
| Loss on Equity
Method | 10.0 | 10.4 | -4.0 % | 10.0 | 3.5 | 185.8 % | 38.9 | 106.4 | -63.5 % |
| Loss on
disposal of tangible assets | 54.9 | 53.8 | 1.9 % | 54.9 | 71.8 | -23.6 % | 173.4 | 121.5 | 42.8 % |
| Others | 113.7 | 35.2 | 222.7 % | 113.7 | 122.6 | -7.3 % | 339.6 | 310.5 | 9.4 % |
| Non-operating Expense | 312.7 | 236.0 | 32.5 % | 312.7 | 226.2 | 38.2 % | 1,109.4 | 1,092.6 | 1.5 % |
| FX related accounts | Stabilized Korean currency against US$ reduced QoQ damages in FX related accounts. | | | | | | | | |
| Equity method account | Shrinking deficits from KTM&S reduced its annual loss by 63.5% YoY, enhancing the net account. | | | | | | | | |
7
3. Operating Highlights
| 1. Fixed-Line (000) — (1) Telephony | 10-4Q — 19,359 | 09-4Q — 19,753 | YoY — -2.0 | % | 19,359 | 19,432 | -0.4 | % |
|---|---|---|---|---|---|---|---|---|
| (PSTN) | 16,635 | 18,052 | -7.9 | % | 16,635 | 16,942 | -1.8 | % |
| Local | 15,662 | 17,069 | -8.2 | % | 15,662 | 15,966 | -1.9 | % |
| Group | 972 | 983 | -1.1 | % | 972 | 976 | -0.4 | % |
| (VoIP) | 2,724 | 1,701 | 60.1 | % | 2,724 | 2,490 | 9.4 | % |
| (2) Broadband | 7,424 | 6,953 | 6.8 | % | 7,424 | 7,315 | 1.5 | % |
| (3) IPTV | 2,085 | 1,172 | 77.9 | % | 2,085 | 1,790 | 16.5 | % |
| (4) Nespot | 266 | 296 | -10.4 | % | 266 | 275 | -3.5 | % |
| (5) WiBro | 377 | 287 | 31.4 | % | 377 | 348 | 8.4 | % |
| 2. Wireless | 10-4Q | 09-4Q | YoY | 10-4Q | 10-3Q | QoQ | ||
| (1) Subscribers (000) | ||||||||
| Gross addition | 1,636 | 1,551 | 5.5 | % | 1,636 | 2,037 | -19.7 | % |
| Deactivation | 1,427 | 1,439 | -0.8 | % | 1,427 | 1,800 | -20.7 | % |
| Net addition | 209 | 112 | 86.6 | % | 209 | 237 | -11.9 | % |
| Churn rate (%) | 2.9 % | 2.7 % | 0.2 | %p | 2.9 % | 3.5 % | -0.7 | %p |
| 16,041 | 15,016 | 6.8 | % | 16,041 | 15,831 | 1.3 | % | |
| (2) ARPU (won) | ||||||||
| Monthly base fee | 13,480 | 13,066 | 3.2 | % | 13,480 | 13,881 | -2.9 | % |
| Airtime charge | 7,633 | 9,874 | -22.7 | % | 7,633 | 8,184 | -6.7 | % |
| VAS / others | 1,343 | 1,332 | 0.8 | % | 1,343 | 1,462 | -8.2 | % |
| Data | 8,824 | 7,218 | 22.3 | % | 8,824 | 8,031 | 9.9 | % |
| Interconnection revenue | 3,743 | 4,859 | -23.0 | % | 3,743 | 4,957 | -24.5 | % |
| Excluding interconnection | 31,281 | 31,490 | -0.7 | % | 31,281 | 31,559 | -0.9 | % |
| Including interconnection | 35,024 | 36,349 | -3.6 | % | 35,024 | 36,515 | -4.1 | % |
- Wireless ARPU excluding activation fee.
8