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KT CORP — Interim / Quarterly Report 2009
Jan 23, 2009
30640_ffr_2009-01-23_4f5e3a51-28a6-4185-be05-6aeef734089b.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 2009
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 ü 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 ü
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 23, 2009 | |
|---|---|
| KT Corporation | |
| By: | /s/ Thomas Bum Joon Kim |
| Name: | Thomas Bum Joon Kim |
| Title: | Managing Director |
| By: | /s/ Youngwoo Kim |
| Name: | Youngwoo Kim |
| Title: | Director |
January 23, 2009
4th Quarter 2008
Preliminary Earnings Commentary
(KRX : 030200 / NYSE : KTC)
Disclaimer
This material contains estimated information of unaudited non-consolidated preliminary financial and operating data of KT Corporation (KT or the company) for the fourth quarter of 2008 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 2008 will be filed with the Financial Supervisory Service(FSS) and the Korea Exchange(KRX) by March 31, 2009.
If you have any questions in connection with the preliminary earnings, please contact Investor Relations Department of KT.
Tel : 82-31-727-0950~59
Fax : 82-31-727-0949
E-mail: [email protected]
- Financial Highlights
A. Summary of Income Statement
| (KRW bn) | 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | ||
|---|---|---|---|---|---|---|---|---|
| Amount | D % | Amount | D % | |||||
| OPERATING REVENUES | 2,875.3 | 2,913.5 | -38.1 | -1.3 % | 2,996.3 | -121.0 | -4.0 % | 11,784.9 |
| Internet access | 528.2 | 534.1 | -5.9 | -1.1 % | 533.2 | -5.0 | -0.9 % | 2,130.2 |
| Internet application | 129.0 | 156.5 | -27.5 | -17.6 % | 95.3 | 33.7 | 35.3 % | 540.6 |
| Data | 415.0 | 419.8 | -4.8 | -1.2 % | 408.3 | 6.7 | 1.6 % | 1,650.1 |
| Telephone | 974.8 | 970.2 | 4.6 | 0.5 % | 1,064.4 | -89.6 | -8.4 % | 3,984.5 |
| LM | 330.4 | 340.6 | -10.3 | -3.0 % | 392.1 | -61.8 | -15.7 % | 1,393.6 |
| Wireless | 350.4 | 364.6 | -14.2 | -3.9 % | 368.2 | -17.8 | -4.8 % | 1,563.7 |
| Real estate | 63.2 | 63.4 | -0.2 | -0.4 % | 50.3 | 12.8 | 25.5 % | 245.8 |
| Others | 84.4 | 64.2 | 20.2 | 31.5 % | 84.5 | -0.1 | -0.2 % | 276.2 |
| SI | 77.3 | 57.7 | 19.7 | 34.1 % | 76.0 | 1.3 | 1.8 % | 248.4 |
| OPERATING EXPENSES | 2,791.8 | 2,584.0 | 207.7 | 8.0 % | 2,812.6 | -20.8 | -0.7 % | 10,671.2 |
| Labor | 703.5 | 600.7 | 102.8 | 17.1 % | 648.3 | 55.2 | 8.5 % | 2,614.9 |
| Commissions | 211.2 | 182.4 | 28.7 | 15.8 % | 196.0 | 15.1 | 7.7 % | 737.5 |
| Sales commission | 172.3 | 174.6 | -2.3 | -1.3 % | 181.5 | -9.2 | -5.1 % | 805.7 |
| Sales promotion | 69.8 | 64.9 | 4.9 | 7.6 % | 58.0 | 11.8 | 20.3 % | 283.0 |
| Advertising | 17.5 | 17.2 | 0.4 | 2.3 % | 42.2 | -24.6 | -58.4 % | 83.9 |
| Provision for doubtful accounts | -3.7 | 22.7 | -26.4 | N/A | 12.8 | -16.5 | N/A | 75.3 |
| Depreciation | 666.8 | 560.2 | 106.6 | 19.0 % | 623.5 | 43.4 | 7.0 % | 2,203.2 |
| Repairs & maintenance | 48.4 | 26.6 | 21.8 | 82.1 % | 69.9 | -21.5 | -30.7 % | 129.1 |
| Cost of goods sold | 106.4 | 117.7 | -11.3 | -9.6 % | 142.4 | -36.0 | -25.3 % | 562.2 |
| Cost of service provided | 515.0 | 489.8 | 25.2 | 5.1 % | 508.7 | 6.3 | 1.2 % | 1,962.6 |
| R&D | 77.7 | 59.4 | 18.3 | 30.8 % | 88.9 | -11.2 | -12.6 % | 251.1 |
| Activation/installation and A/S cost | 86.9 | 98.7 | -11.8 | -11.9 % | 92.8 | -5.9 | -6.3 % | 374.3 |
| Others | 119.9 | 169.1 | -49.2 | -29.1 % | 147.5 | -27.7 | -18.8 % | 588.3 |
| OPERATING INCOME | 83.6 | 329.4 | -245.9 | -74.6 % | 183.8 | -100.2 | -54.5 % | 1,113.7 |
| Operating margin | 2.9 % | 11.3 % | -8.4% P | 6.1 % | -3.2% P | 9.4 % | ||
| EBITDA(1) | 750.4 | 889.7 | -139.3 | -15.7 % | 807.2 | -56.8 | -7.0 % | 3,316.9 |
| EBITDA margin | 26.1 % | 30.5 % | -4.4% P | 26.9 % | -0.8% P | 28.1 % | ||
| Non-operating income | 291.8 | 295.3 | -3.6 | -1.2 % | 56.3 | 235.4 | 418.0 % | 855.2 |
| Non-operating expenses | 403.0 | 425.8 | -22.8 | -5.4 % | 153.7 | 249.3 | 162.2 % | 1,406.4 |
| INCOME BEFORE INCOME TAXES | -27.7 | 198.9 | -226.6 | N/A | 86.4 | -114.1 | N/A | 562.4 |
| Income tax expenses | -1.1 | 37.5 | -38.6 | N/A | -21.2 | 20.2 | N/A | 113.0 |
| Effective tax rate | 0.0 | 18.9 % | N/A | -24.6 % | N/A | 20.1 % | ||
| NET INCOME | -26.6 | 161.4 | -188.0 | N/A | 107.6 | -134.2 | N/A | 449.4 |
| EPS(2) (units: won) | -132 | 799 | -931 | N/A | 522 | -654 | N/A | 2,224 |
(1) EBITDA = Operating income + depreciation
(2) EPS = Net income ÷ Weighted average of no. of shares outstanding
Revenue
-
QoQ decrease due to fall in internet application and wireless
-
YoY decrease due to fall in telephone and LM revenue
Operating Income
-YoY and QoQ decrease due to rise in labor and depreciation cost
3
B. Summary of Balance Sheet
| (KRW bn) | 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | ||
|---|---|---|---|---|---|---|---|
| Amount | D % | Amount | D % | ||||
| TOTAL ASSETS | 18,722.6 | 18,478.1 | 244.5 | 1.3 % | 17,917.2 | 805.4 | 4.5 % |
| Current assets | 3,775.8 | 3,616.1 | 159.7 | 4.4 % | 3,310.4 | 465.4 | 14.1 % |
| Quick assets | 3,608.3 | 3,468.1 | 140.2 | 4.0 % | 3,188.3 | 420.0 | 13.2 % |
| - Cash & Cash equivalents | 1,427.4 | 1,362.0 | 65.4 | 4.8 % | 1,229.2 | 198.2 | 16.1 % |
| Inventories | 167.5 | 148.0 | 19.5 | 13.2 % | 122.1 | 45.4 | 37.2 % |
| Non-current assets | 14,946.8 | 14,862.0 | 84.8 | 0.6 % | 14,606.8 | 340.0 | 2.3 % |
| Investments and other non-current assets | 4,120.6 | 4,036.7 | 83.9 | 2.1 % | 3,718.4 | 402.2 | 10.8 % |
| - KTF shares | 2,607.3 | 2,544.9 | 62.4 | 2.5 % | 2,620.2 | -12.9 | -0.5 % |
| - Long-term loans | 20.3 | 20.7 | -0.4 | -1.9 % | 66.3 | -45.9 | -69.3 % |
| - Others | 1,493.0 | 1,471.1 | 21.9 | 1.5 % | 1,032.0 | 461.1 | 44.7 % |
| Tangible assets | 10,429.1 | 10,450.7 | -21.7 | -0.2 % | 10,448.6 | -19.5 | -0.2 % |
| Intangible assets | 397.0 | 374.5 | 22.6 | 6.0 % | 439.7 | -42.7 | -9.7 % |
| TOTAL LIABILITIES | 9,863.8 | 9,583.7 | 280.0 | 2.9 % | 9,057.3 | 806.5 | 8.9 % |
| Current liabilities | 2,614.4 | 2,648.9 | -34.5 | -1.3 % | 2,991.3 | -376.9 | -12.6 % |
| Interest-bearing debts | 410.2 | 411.8 | -1.6 | -0.4 % | 438.0 | -27.8 | -6.3 % |
| Accounts payable | 661.6 | 658.0 | 3.6 | 0.6 % | 769.9 | -108.2 | -14.1 % |
| Others | 1,542.6 | 1,579.1 | -36.5 | -2.3 % | 1,783.5 | -240.9 | -13.5 % |
| Non-current liabilities | 7,249.3 | 6,934.8 | 314.5 | 4.5 % | 6,065.9 | 1,183.4 | 19.5 % |
| Interest-bearing debts | 5,881.2 | 5,491.8 | 389.5 | 7.1 % | 4,643.9 | 1,237.4 | 26.6 % |
| Installation deposit | 781.9 | 808.8 | -26.9 | -3.3 % | 841.4 | -59.5 | -7.1 % |
| Others | 586.2 | 634.3 | -48.1 | -7.6 % | 580.7 | 5.5 | 0.9 % |
| TOTAL STOCKHOLDERS EQUITY | 8,858.8 | 8,894.4 | -35.5 | -0.4 % | 8,859.9 | -1.0 | 0.0 % |
| Common stock | 1,561.0 | 1,561.0 | 0.0 | 0.0 % | 1,561.0 | 0.0 | 0.0 % |
| Capital surplus | 1,262.3 | 1,257.3 | 5.0 | 0.4 % | 1,272.6 | -10.3 | -0.8 % |
| Retained earnings | 9,813.7 | 9,840.3 | -26.6 | -0.3 % | 9,842.9 | -29.2 | -0.3 % |
| Capital adjustments | -3,814.6 | -3,815.1 | 0.5 | N/A | -3,815.8 | 1.2 | N/A |
| Treasury stock | -3,824.9 | -3,824.9 | 0.0 | N/A | -3,825.7 | 0.8 | N/A |
| Gain (loss) on valuation of investment securities | 9.7 | 9.8 | -0.2 | -1.7 % | 11.4 | -1.8 | -15.5 % |
| Others | 0.6 | 0.0 | 0.7 | N/A | -1.5 | 2.2 | N/A |
| Others | 36.5 | 50.9 | -14.4 | -28.3 % | -0.8 | 37.3 | N/A |
| Total interest-bearing debt | 6,291.5 | 5,903.6 | 387.8 | 6.6 % | 5,081.9 | 1,209.6 | 23.8 % |
| Net debt | 4,864.1 | 4,541.6 | 322.5 | 7.1 % | 3,852.7 | 1,011.4 | 26.3 % |
| Net debt / Total shareholders equity | 54.9 % | 51.1 % | 3.8% P | 43.5 % | 11.4% P |
Assets
- Increase in Cash & Cash equivalents due to issuance of debt
Liabilities
- YoY and QoQ increase of Non-current liabilities due to issuance of debt
4
2. Operating Results
A. Internet Revenue
| (KRW bn) | 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | ||
|---|---|---|---|---|---|---|---|---|
| Amount | D % | Amount | D % | |||||
| Internet access | 528.2 | 534.1 | -5.9 | -1.1 % | 533.2 | -5.0 | -0.9 % | 2,130.2 |
| Broadband | 528.5 | 532.6 | -4.2 | -0.8 % | 532.5 | -4.0 | -0.8 % | 2,127.9 |
| Megapass | 501.0 | 509.5 | -8.5 | -1.7 % | 506.5 | -5.5 | -1.1 % | 2,020.1 |
| Nespot | 6.9 | 7.3 | -0.4 | -5.9 % | 9.0 | -2.1 | -23.3 % | 30.7 |
| WiBro | 20.5 | 15.8 | 4.8 | 30.3 % | 17.0 | 3.6 | 20.9 % | 77.1 |
| Others | -0.3 | 1.4 | -1.7 | N/A | 0.7 | -1.0 | N/A | 2.4 |
| Internet application | 129.0 | 156.5 | -27.5 | -17.6 % | 95.3 | 33.7 | 35.3 % | 540.6 |
| IDC | 59.3 | 71.1 | -11.8 | -16.6 % | 50.6 | 8.7 | 17.3 % | 249.8 |
| Bizmeka | 33.9 | 51.8 | -18.0 | -34.7 % | 28.0 | 5.9 | 21.1 % | 169.8 |
| MegaTV | 17.7 | 14.3 | 3.3 | 23.4 % | 1.9 | 15.7 | 824.5 % | 46.6 |
| Others | 18.2 | 19.3 | -1.1 | -5.6 % | 14.9 | 3.3 | 22.2 % | 74.5 |
Internet Access
- YoY and QoQ decrease due to fall in ARPU affected by increase in subscribers with long-term subscription discounts
Internet Application
- QoQ decrease due to fall in one-time sales of IDC and bizmeka products such as servers and video security solutions
B. Data Revenue
| (KRW bn) | 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | ||
|---|---|---|---|---|---|---|---|---|
| Amount | D % | Amount | D % | |||||
| Data | 415.0 | 419.8 | -4.8 | -1.2 % | 408.3 | 6.7 | 1.6 % | 1,650.1 |
| Leased line | 277.1 | 280.0 | -2.9 | -1.0 % | 277.4 | -0.3 | -0.1 % | 1095.3 |
| Local | 117.5 | 115.4 | 2.1 | 1.8 % | 118.3 | -0.8 | -0.7 % | 465.4 |
| Domestic long distance | 85.6 | 83.5 | 2.1 | 2.5 % | 83.3 | 2.3 | 2.7 % | 330.4 |
| International long distance | 6.3 | 7.3 | -1.0 | -13.4 % | 7.1 | -0.8 | -11.1 % | 25.0 |
| Broadcasting & others | 67.7 | 73.8 | -6.1 | -8.3 % | 68.6 | -0.9 | -1.3 % | 274.5 |
| Data leased line | 39.9 | 40.3 | -0.4 | -0.9 % | 35.7 | 4.2 | 11.9 % | 157.1 |
| Packet data | 1.0 | 1.3 | -0.3 | -21.5 % | 1.7 | -0.7 | -42.4 % | 5.4 |
| National network ATM | 21.3 | 21.7 | -0.3 | -1.6 % | 19.8 | 1.5 | 7.5 % | 85.0 |
| VPN | 17.5 | 17.3 | 0.2 | 1.4 % | 14.1 | 3.5 | 24.8 % | 66.7 |
| Kornet | 61.4 | 65.2 | -3.7 | -5.7 % | 61.4 | 0.1 | 0.1 % | 257.4 |
| Satellite | 27.3 | 26.6 | 0.7 | 2.5 % | 25.3 | 2.0 | 8.0 % | 107.6 |
| Others | 9.2 | 7.7 | 1.5 | 19.4 % | 8.6 | 0.6 | 7.4 % | 32.7 |
5
C. Telephone Revenue
| (KRW bn) | 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | ||
|---|---|---|---|---|---|---|---|---|
| Amount | D % | Amount | D % | |||||
| Telephone revenue | 974.8 | 970.2 | 4.6 | 0.5 % | 1,064.4 | -89.6 | -8.4 % | 3,984.5 |
| Subscriber connection | 322.1 | 329.1 | -7.0 | -2.1 % | 344.9 | -22.8 | -6.6 % | 1,326.8 |
| Subscription fee | 5.5 | 5.1 | 0.4 | 7.1 % | 10.5 | -5.0 | -47.8 % | 27.7 |
| Basic monthly fee | 261.4 | 264.9 | -3.5 | -1.3 % | 272.4 | -11.0 | -4.0 % | 1,063.8 |
| Installlation | 5.7 | 5.7 | 0.0 | 0.1 % | 8.7 | -3.0 | -34.3 % | 25.9 |
| Interconnection | 49.6 | 53.4 | -3.8 | -7.2 % | 53.4 | -3.8 | -7.1 % | 209.4 |
| Local | 220.5 | 212.1 | 8.4 | 3.9 % | 228.1 | -7.6 | -3.3 % | 874.7 |
| Usage | 129.9 | 133.1 | -3.1 | -2.4 % | 151.9 | -22.0 | -14.5 % | 549.8 |
| Interconnection | 22.9 | 25.0 | -2.0 | -8.2 % | 23.8 | -0.8 | -3.5 % | 97.2 |
| Others | 67.6 | 54.1 | 13.6 | 25.1 % | 52.4 | 15.2 | 29.1 % | 227.8 |
| Domestic long distance | 133.6 | 136.7 | -3.1 | -2.3 % | 159.8 | -26.2 | -16.4 % | 562.7 |
| Usage | 125.8 | 128.5 | -2.7 | -2.1 % | 150.6 | -24.8 | -16.4 % | 530.0 |
| Interconnection | 7.4 | 7.9 | -0.5 | -6.0 % | 9.0 | -1.6 | -17.5 % | 31.3 |
| Others | 0.3 | 0.3 | 0.0 | 2.2 % | 0.3 | 0.1 | 32.0 % | 1.3 |
| International long distance | 40.2 | 43.7 | -3.5 | -8.0 % | 44.5 | -4.3 | -9.7 % | 180.0 |
| International settlement | 67.7 | 42.9 | 24.8 | 57.8 % | 47.1 | 20.6 | 43.7 % | 207.8 |
| SoIP | 23.7 | 19.6 | 4.0 | 20.6 % | 9.1 | 14.6 | 159.5 % | 75.0 |
| VAS | 74.2 | 89.2 | -14.9 | -16.8 % | 98.7 | -24.5 | -24.8 % | 339.7 |
| Public telephone | 21.4 | 11.9 | 9.6 | 80.6 % | 14.1 | 7.4 | 52.3 % | 54.2 |
| 114 phone directory service | 27.7 | 29.7 | -2.0 | -6.7 % | 28.5 | -0.8 | -2.9 % | 117.4 |
| Others | 43.7 | 55.3 | -11.6 | -21.0 % | 89.5 | -45.8 | -51.2 % | 246.1 |
Local-Others
- Increase in loss estimation of USO resulted in YoY and QoQ increase of Local-Others revenue
International settlement
- YoY and QoQ increase due to increase in international call traffic
Public telephone
- Increase in loss estimation of USO resulted in YoY and QoQ increase of public telephone revenue
Others
- YoY and QoQ decrease due to fall in Ann handset sales and increase subscription discounts for automatic payment
6
D. LM(Land to Mobile) Interconnection Revenue
| (KRW bn) | 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | ||
|---|---|---|---|---|---|---|---|---|
| Amount | D % | Amount | D % | |||||
| LM Revenue | 330.4 | 340.6 | -10.3 | -3.0 % | 392.1 | -61.8 | -15.7 % | 1,393.6 |
| LM interconnection cost | 161.7 | 183.9 | -22.3 | -12.1 % | 206.2 | -44.5 | -21.6 % | 706.8 |
LM Revenue
- YoY and QoQ decline due to decrease in subscribers and volume traffic
LM Interconnection cost
- As a result of interconnection cost settlement the adjusted estimate amount(-9bn) for 1Q08 through 3Q08 was reflected in 4Q08
E. Wireless Revenue
| (KRW bn) | 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | ||
|---|---|---|---|---|---|---|---|---|
| Amount | D % | Amount | D % | |||||
| Wireless revenue | 350.4 | 364.6 | -14.2 | -3.9 % | 368.2 | -17.8 | -4.8 % | 1,563.7 |
| Wireless resale | 350.8 | 361.6 | -10.8 | -3.0 % | 364.9 | -14.1 | -3.9 % | 1,557.5 |
| Wireless service | 242.5 | 247.7 | -5.3 | -2.1 % | 255.9 | -13.4 | -5.2 % | 1,004.1 |
| Handset sales | 108.3 | 113.8 | -5.5 | -4.8 % | 109.0 | -0.7 | -0.6 % | 553.4 |
| Others | -0.4 | 3.0 | -3.4 | N/A | 3.3 | -3.7 | N/A | 6.2 |
Wireless revenue
- YoY and QoQ decrease due to fall in new and retained subscribers
7
F. Operating Expenses
| 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | |||
|---|---|---|---|---|---|---|---|---|
| (KRW bn) | Amount | D % | Amount | D % | ||||
| Labor | 703.5 | 600.7 | 102.8 | 17.1 % | 648.3 | 55.2 | 8.5 % | 2,614.9 |
| Salaries & wages | 444.9 | 437.9 | 7.0 | 1.6 % | 461.2 | -16.3 | -3.5 % | 1,810.1 |
| Employee benefits | 141.5 | 113.1 | 28.4 | 25.1 % | 118.7 | 22.8 | 19.2 % | 482.6 |
| Provision for retirement | 117.2 | 49.8 | 67.4 | 135.5 % | 68.5 | 48.7 | 71.1 % | 322.2 |
| Commissions | 211.2 | 182.4 | 28.7 | 15.8 % | 196.0 | 15.1 | 7.7 % | 737.5 |
| Marketing expenses | 259.6 | 256.6 | 3.0 | 1.2 % | 281.7 | -22.0 | -7.8 % | 1,172.6 |
| Sales commission | 172.3 | 174.6 | -2.3 | -1.3 % | 181.5 | -9.2 | -5.1 % | 805.7 |
| Sales promotion | 69.8 | 64.9 | 4.9 | 7.6 % | 58.0 | 11.8 | 20.3 % | 283.0 |
| Advertising | 17.5 | 17.2 | 0.4 | 2.3 % | 42.2 | -24.6 | -58.4 % | 83.9 |
| Provision for doubtful accounts | -3.7 | 22.7 | -26.4 | N/A | 12.8 | -16.5 | N/A | 75.3 |
| Depreciation | 666.8 | 560.2 | 106.6 | 19.0 % | 623.5 | 43.4 | 7.0 % | 2,203.2 |
| Repairs and Maintenance | 48.4 | 26.6 | 21.8 | 82.1 % | 69.9 | -21.5 | -30.7 % | 129.1 |
| Cost of goods sold | 106.4 | 117.7 | -11.3 | -9.6 % | 142.4 | -36.0 | -25.3 % | 562.2 |
| PCS handset cost | 108.5 | 113.7 | -5.2 | -4.6 % | 122.9 | -14.4 | -11.7 % | 544.6 |
| Others | -2.1 | 4.0 | -6.1 | N/A | 19.6 | -21.6 | N/A | 17.5 |
| Cost of service provided | 515.0 | 489.8 | 25.2 | 5.1 % | 508.7 | 6.3 | 1.2 % | 1,962.6 |
| Cost of service | 260.8 | 238.4 | 22.4 | 9.4 % | 240.3 | 20.5 | 8.5 % | 961.3 |
| PCS resale network cost to KTF | 125.7 | 126.1 | -0.4 | -0.3 % | 132.7 | -7.0 | -5.3 % | 515.3 |
| SI service cost | 73.4 | 55.7 | 17.7 | 31.8 % | 73.1 | 0.3 | 0.4 % | 235.9 |
| Others | 61.7 | 56.6 | 5.1 | 9.0 % | 34.5 | 27.2 | 78.9 % | 210.1 |
| International settlement cost | 67.9 | 54.7 | 13.2 | 24.1 % | 57.0 | 10.9 | 19.2 % | 241.3 |
| LM interconnection cost | 161.7 | 183.9 | -22.3 | -12.1 % | 206.2 | -44.5 | -21.6 % | 706.8 |
| Others | 24.6 | 12.8 | 11.8 | 92.4 % | 5.3 | 19.3 | 366.0 % | 53.3 |
| R&D | 77.7 | 59.4 | 18.3 | 30.8 % | 88.9 | -11.2 | -12.6 % | 251.1 |
| Activation/installation and A/S cost | 86.9 | 98.7 | -11.8 | -11.9 % | 92.8 | -5.9 | -6.3 % | 374.3 |
| Others | 119.9 | 169.1 | -49.2 | -29.1 % | 147.5 | -27.7 | -18.8 % | 588.3 |
| CAPEX * | 627.8 | 511.1 | 116.7 | 22.8 % | 869.7 | -241.9 | -27.8 % | 2,187.2 |
- 2008 4Q CAPEX was settled as KRW 511.1 billion (same as previously disclosed figure)
Labor
- QoQ and YoY rise due to 1) increased severance payments due to outsourcing KT Plaza and from employee retirement 2) rise in employee benefits from one-time compensation following labor negotiation
Commissions
- QoQ and YoY increase from rise in commission for research and technology consulting, call center commission for KT Plaza outsourcing, and KT Data Systems commission
Repairs and Maintenance
- QoQ rise from introduction of efficiency program for managing assets, such as buildings and telecommunication lines
Depreciation
- QoQ and YoY rise due to increase in tangible assets
COGS
- QoQ and YoY fall from decline in new wireless subscribers
Cost of Service Provided
- QoQ and YoY rise from increased SI revenue and MegaTV contents purchase (Cost of Service Provided Others)
8
G. Non-operating Income
| 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | |||
|---|---|---|---|---|---|---|---|---|
| (KRW bn) | Amount | D % | Amount | D % | ||||
| Non-operating income | 291.8 | 295.3 | -3.6 | -1.2 % | 56.3 | 235.4 | 418.0 % | 855.2 |
| Gains on disposition of investments | 0.0 | 0.0 | 0.0 | N/A | 2.2 | -2.2 | N/A | 0.0 |
| Gains on disposition of tangible assets | 0.5 | 1.0 | -0.5 | -52.4 % | 1.7 | -1.2 | -70.7 % | 3.5 |
| Interest income | 37.3 | 22.3 | 15.0 | 67.2 % | 41.9 | -4.5 | -10.9 % | 103.6 |
| FX transaction gain | 21.4 | 16.1 | 5.3 | 33.0 % | 1.5 | 19.9 | 1345.1 % | 49.0 |
| FX translation gain | 4.3 | 14.6 | -10.3 | -70.5 % | -12.3 | 16.6 | N/A | 36.4 |
| Gain on equity method | 7.3 | 15.4 | -8.2 | -52.9 % | -6.3 | 13.5 | N/A | 72.4 |
| Others | 221.0 | 225.9 | -4.9 | -2.2 % | 27.6 | 193.4 | 700.5 % | 590.2 |
Interest Income
- QoQ and YoY increase from rise in Cash & cash equivalents, rise in interest rate, and dividend income from collective severance insurance
FX translation gain
- QoQ decline from relatively stronger exchange rate over previous quarter, leading to gains from bonds for international settlement
H. Non-operating Expenses
| 2008 4Q | 2008 3Q | QoQ | 2007 4Q | YoY | 2008 Cumm. | |||
|---|---|---|---|---|---|---|---|---|
| (KRW bn) | Amount | D % | Amount | D % | ||||
| Non-operating expenses | 403.0 | 425.8 | -22.8 | -5.4 % | 153.7 | 249.3 | 162.2 % | 1,406.4 |
| Interest expense | 92.1 | 78.8 | 13.3 | 16.9 % | 74.6 | 17.6 | 23.6 % | 329.4 |
| FX transaction loss | 21.2 | 10.4 | 10.8 | 103.6 % | 1.8 | 19.4 | 1054.4 % | 39.0 |
| FX translation loss | 170.8 | 290.1 | -119.4 | -41.1 % | 12.5 | 158.3 | 1266.1 % | 657.2 |
| Loss on equity method | -11.2 | -7.7 | -3.5 | N/A | -6.8 | -4.3 | N/A | 72.0 |
| Loss on disposition of fixed assets | 18.7 | 6.7 | 12.0 | 179.1 % | 20.8 | -2.1 | -10.3 % | 49.6 |
| Others | 111.5 | 47.5 | 63.9 | 134.6 % | 50.8 | 60.6 | 119.3 % | 259.2 |
FX Translation Loss
- QoQ decline from relatively stronger enchange rate over previous quarter (3Q: KRW 1,187.7 g 4Q:1,257.5)
9
Dec-08
Broadband
| Nov-07 | Dec-07 | Jan-08 | Feb-08 | Mar-08 | Apr-08 | May-08 | Jun-08 | Jul-08 | Aug-08 | Sep-08 | Oct-08 | Nov-08 | Dec-08 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Broadband Subs | 6,513,293 | 6,515,541 | 6,518,821 | 6,555,162 | 6,627,175 | 6,648,047 | 6,684,230 | 6,687,147 | 6,741,946 | 6,811,107 | 6,754,027 | 6,793,156 | 6,771,374 | 6,711,538 |
| Net Addition | -6,729 | 2,248 | 3,280 | 36,341 | 72,013 | 20,872 | 36,183 | 2,917 | 54,799 | 69,161 | -57,080 | 39,129 | -21,782 | -59,836 |
| Megapass Lite | 5,592,588 | 5,573,114 | 5,554,600 | 5,565,964 | 5,599,970 | 5,600,582 | 5,613,366 | 5,596,844 | 5,629,828 | 5,662,337 | 5,611,047 | 5,624,066 | 5,600,155 | 5,552,393 |
| Megapass Special | 920,705 | 942,427 | 964,221 | 989,198 | 1,027,205 | 1,047,465 | 1,070,864 | 1,090,303 | 1,112,118 | 1,148,770 | 1,142,980 | 1,169,090 | 1,171,219 | 1,159,145 |
| Broadband M/S | ||||||||||||||
| KT | 44.3 % | 44.3 % | 44.1 % | 44.2 % | 44.3 % | 44.2 % | 44.4 % | 44.4 % | 44.7 % | 44.7 % | 44.2 % | 44.1 % | 43.8 % | |
| Hanaro | 25.1 % | 24.9 % | 24.8 % | 24.6 % | 24.2 % | 24.0 % | 23.5 % | 23.0 % | 22.4 % | 21.9 % | 22.6 % | 22.7 % | 22.7 % | |
| Powercomm | 11.4 % | 11.7 % | 11.9 % | 12.0 % | 12.2 % | 12.3 % | 12.5 % | 12.8 % | 13.2 % | 13.6 % | 13.4 % | 13.5 % | 13.8 % | |
| Dacom | 0.5 % | 0.5 % | 0.4 % | 0.4 % | 0.4 % | 0.4 % | 0.3 % | 0.3 % | 0.3 % | 0.3 % | 0.2 % | 0.2 % | 0.2 % | |
| SO | 17.6 % | 17.5 % | 17.6 % | 17.7 % | 17.8 % | 17.9 % | 18.2 % | 18.4 % | 18.6 % | 18.4 % | 18.5 % | 18.4 % | 18.4 % | |
| Others | 1.1 % | 1.1 % | 1.1 % | 1.1 % | 1.1 % | 1.1 % | 1.0 % | 1.0 % | 0.9 % | 1.1 % | 1.0 % | 1.0 % | 1.0 % | |
| Wireless | ||||||||||||||
| Nov-07 | Dec-07 | Jan-08 | Feb-08 | Mar-08 | Apr-08 | May-08 | Jun-08 | Jul-08 | Aug-08 | Sep-08 | Oct-08 | Nov-08 | Dec-08 | |
| Nespot | 406,475 | 401,831 | 398,743 | 395,395 | 391,921 | 388,506 | 389,393 | 387,193 | 379,663 | 376,860 | 370,764 | 363,214 | 359,465 | 351,869 |
| WiBRO | 102,475 | 106,153 | 115,917 | 120,443 | 145,290 | 158,190 | 197,496 | 201,903 | 187,601 | 177,611 | 172,048 | 175,194 | 176,157 | 160,422 |
| KT Resale | 2,873,989 | 2,927,201 | 2,943,999 | 2,919,223 | 2,938,583 | 2,959,223 | 2,901,544 | 2,905,973 | 2,898,953 | 2,894,718 | 2,860,213 | 2,874,966 | 2,861,746 | 2,833,751 |
| - KTF Resale Activation | 118,077 | 180,659 | 135,652 | 132,058 | 195,159 | 150,140 | 93,935 | 166,982 | 151,074 | 108,058 | 81,109 | 133,066 | 83,316 | 83,224 |
| - KTF Resale Deactivation | 114,552 | 127,447 | 118,854 | 156,834 | 175,799 | 129,500 | 151,614 | 162,553 | 158,094 | 112,293 | 115,614 | 118,313 | 96,536 | 111,219 |
| - Internal Migration | 2,259 | 6,745 | 3,634 | 28,495 | 4,912 | 3,800 | 4,813 | 7,852 | 16,115 | 8,391 | 7,240 | 15,567 | 7,276 | 16,862 |
| - Net Addition | 3,525 | 53,212 | 16,798 | -24,776 | 19,360 | 20,640 | -57,679 | 4,429 | -7,020 | -4,235 | -34,505 | 14,753 | -13,220 | -27,995 |
| - Churn Rate | 4.0 % | 4.4 % | 4.0 % | 5.3 % | 6.0 % | 4.4 % | 5.2 % | 5.6 % | 5.4 % | 3.9 % | 4.0 % | 4.1 % | 3.4 % | 3.9 % |
| Both the activation and deactivation numbers above include internal migration(2G g 3G). | ||||||||||||||
| Mega-TV | ||||||||||||||
| Nov-07 | Dec-07 | Jan-08 | Feb-08 | Mar-08 | Apr-08 | May-08 | Jun-08 | Jul-08 | Aug-08 | Sep-08 | Oct-08 | Nov-08 | Dec-08 | |
| Mega-TV | 296,912 | 324,609 | 390,027 | 495,913 | 567,230 | 608,734 | 636,536 | 705,856 | 722,857 | 766,058 | 808,101 | 846,651 | 825,760 | 773,109 |
| Fixed-line | ||||||||||||||
| Nov-07 | Dec-07 | Jan-08 | Feb-08 | Mar-08 | Apr-08 | May-08 | Jun-08 | Jul-08 | Aug-08 | Sep-08 | Oct-08 | Nov-08 | Dec-08 | |
| Telephony (000) | 21,103 | 20,919 | 20,882 | 20,842 | 20,818 | 20,779 | 20,762 | 20,741 | 20,695 | 20,673 | 20,621 | 20,573 | 20,491 | 19,866 |
| Household (000) | 20,018 | 19,980 | 19,936 | 19,894 | 19,861 | 19,817 | 19,796 | 19,768 | 19,719 | 19,689 | 19,635 | 19,579 | 19,496 | 18,883 |
| Business (000) | 1,085 | 938 | 946 | 948 | 958 | 962 | 966 | 974 | 976 | 984 | 986 | 994 | 996 | 983 |
| Domestic Long Distance (000) | 18,599 | 18,571 | 18,563 | 18,532 | 18,512 | 18,512 | 18,466 | 18,440 | 18,397 | 18,371 | 18,321 | 18,272 | 18,197 | 17,634 |
| * Ann (000) | 2,282 | 2,308 | 2,348 | 2,387 | 2,433 | 2,461 | 2,480 | 2,532 | 2,540 | 2,552 | 2,584 | 2,596 | 2,603 | 2,611 |
| * Ringo (000) | 3,605 | 3,843 | 3,830 | 3,817 | 3,821 | 3,813 | 3,819 | 3,815 | 3,805 | 3,794 | 3,773 | 3,754 | 3,716 | 3,685 |
| * Caller ID Users (000) | 5,532 | 5,538 | 5,548 | 5,553 | 5,569 | 5,582 | 5,599 | 5,599 | 5,591 | 5,590 | 5,586 | 5,579 | 5,561 | 5,535 |
| * My Style(Local) (000) | 1,044 | 1,022 | 1,013 | 1,005 | 985 | 966 | 950 | 933 | 916 | 902 | 887 | 871 | 856 | 839 |
| * My Style(DLD) (000) | 920 | 897 | 885 | 877 | 858 | 839 | 823 | 808 | 792 | 780 | 767 | 751 | 738 | 723 |
| Fixed-line M/S | ||||||||||||||
| Local M/S (subscriber base) | 90.6 % | 90.4 % | 90.3 % | 90.2 % | 90.1 % | 90.1 % | 90.1 % | 90.1 % | 90.1 % | 90.1 % | 90.0 % | 89.9 % | 89.9 % | |
| DLD (revenue base) | 85.4 % | 85.4 % | 85.4 % | 85.4 % | 85.3 % | 85.3 % | 85.3 % | 85.5 % | 85.6 % | 85.7 % | 85.5 % | 85.3 % | 85.4 % | |
| Reference Data | ||||||||||||||
| Nov-07 | Dec-07 | Jan-08 | Feb-08 | Mar-08 | Apr-08 | May-08 | Jun-08 | Jul-08 | Aug-08 | Sep-08 | Oct-08 | Nov-08 | Dec-08 | |
| Population (000) | 48,457 | 48,457 | 48,444 | 48,481 | 48,494 | 48,507 | 48,519 | 48,532 | 48,544 | 48,557 | 48,569 | 48,582 | 48,594 | 48,618 |
| Number of Household (000) | 16,194 | 16,194 | 16,194 | 16,673 | 16,673 | 16,673 | 16,673 | 16,673 | 16,673 | 16,673 | 16,673 | 16,673 | 16,673 | 16,673 |
Broadband
-
2008.5.19 Lite, Special Lite, Premium g Lite(50M), Special, Ntopia g Special(100M)
-
Reorganized service lineup into 2 price packages- Lite and Special in May 19, 2008. Previous Lite, Premium g Lite(50M), Special, Ntopia g Special(100M)
Fixed-line
-
Telephony : 2008 Business line
-
Household : Local
-
Telephony : From Jan. 2008, number of business line subscribers will be included in Telephony, pursuant to the reporting rules of KCC
-
Household : Formerly Local subscribers