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6-K Filing
KT (KT) 6-KCurrent report (foreign)
Filed: 22 Nov 10, 12:00am
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 November 2010
Commission File Number 1-14926
KT Corporation
(Translation of registrant’s 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: November 22, 2010 | ||
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 |
November 9, 2010
3rd 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 third 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 KT’s 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.
KT’s non-consolidated financial statements and report for the third quarter of 2010 will be filed with the Financial Supervisory Service(FSS) and the Korea Exchange(KRX) by November 15, 2010.
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: ir@kt.com
2010 3Q 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.
1. Financial Highlights | (unit : KRW bn) |
A. Income Statement | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
Operating Revenue | 5,233.4 | 4,821.2 | 8.6 | % | 5,233.4 | 4,986.4 | 5.0 | % | 15,042.1 | 14,208.2 | 5.9 | % | ||||||||||||||||||||||||
Service Revenue | 3,999.1 | 3,865.1 | 3.5 | % | 3,999.1 | 3,991.7 | 0.2 | % | 11,827.0 | 11,540.9 | 2.5 | % | ||||||||||||||||||||||||
Sales of Merchandise | 1,234.3 | 956.1 | 29.1 | % | 1,234.3 | 994.7 | 24.1 | % | 3,215.0 | 2,667.3 | 20.5 | % | ||||||||||||||||||||||||
¨ Wireless | 2,925.6 | 2,501.7 | 16.9 | % | 2,925.6 | 2,662.1 | 9.9 | % | 8,165.5 | 7,192.7 | 13.5 | % | ||||||||||||||||||||||||
¨ Telephone | 1,087.6 | 1,227.9 | -11.4 | % | 1,087.6 | 1,128.9 | -3.7 | % | 3,337.1 | 3,701.9 | -9.9 | % | ||||||||||||||||||||||||
¨ Internet | 676.0 | 638.7 | 5.8 | % | 676.0 | 686.2 | -1.5 | % | 2,027.8 | 1,925.7 | 5.3 | % | ||||||||||||||||||||||||
¨ Data | 326.9 | 319.9 | 2.2 | % | 326.9 | 332.9 | -1.8 | % | 989.0 | 994.1 | -0.5 | % | ||||||||||||||||||||||||
¨ Real estate | 144.6 | 74.9 | 93.0 | % | 144.6 | 94.4 | 53.2 | % | 290.0 | 217.2 | 33.5 | % | ||||||||||||||||||||||||
¨ Others | 72.6 | 57.9 | 25.3 | % | 72.6 | 82.0 | -11.5 | % | 232.6 | 176.7 | 31.7 | % | ||||||||||||||||||||||||
Operating Expense | 4,638.9 | 4,408.1 | 5.2 | % | 4,638.9 | 4,385.0 | 5.8 | % | 13,293.5 | 12,713.5 | 4.6 | % | ||||||||||||||||||||||||
¨ Labor expense | 545.8 | 655.1 | -16.7 | % | 545.8 | 619.8 | -11.9 | % | 1,777.4 | 2,018.8 | -12.0 | % | ||||||||||||||||||||||||
¨ Commission | 332.2 | 295.7 | 12.4 | % | 332.2 | 336.6 | -1.3 | % | 983.8 | 906.5 | 8.5 | % | ||||||||||||||||||||||||
¨ Sales promotion | 273.5 | 286.7 | -4.6 | % | 273.5 | 278.8 | -1.9 | % | 818.2 | 750.3 | 9.0 | % | ||||||||||||||||||||||||
¨ Sales commission | 512.8 | 510.5 | 0.5 | % | 512.8 | 408.1 | 25.7 | % | 1,351.2 | 1,558.7 | -13.3 | % | ||||||||||||||||||||||||
¨ Bad debt expense | 29.3 | 3.5 | 729.6 | % | 29.3 | 25.7 | 14.1 | % | 79.9 | 57.2 | 39.8 | % | ||||||||||||||||||||||||
¨ Depreciation & Amortization | 717.3 | 750.7 | -4.4 | % | 717.3 | 713.1 | 0.6 | % | 2,125.9 | 2,262.6 | -6.0 | % | ||||||||||||||||||||||||
¨ Advertising | 36.8 | 50.5 | -27.2 | % | 36.8 | 43.5 | -15.6 | % | 121.2 | 119.6 | 1.3 | % | ||||||||||||||||||||||||
¨ Repair & Maintenance | 23.9 | 38.4 | -37.6 | % | 23.9 | 32.9 | -27.2 | % | 81.2 | 92.9 | -12.6 | % | ||||||||||||||||||||||||
¨ Cost of goods sold | 1,147.0 | 912.8 | 25.6 | % | 1,147.0 | 952.7 | 20.4 | % | 3,055.3 | 2,317.8 | 31.8 | % | ||||||||||||||||||||||||
¨ Cost of service provided | 618.3 | 540.8 | 14.3 | % | 618.3 | 606.3 | 2.0 | % | 1,774.3 | 1,592.3 | 11.4 | % | ||||||||||||||||||||||||
¨ Research & Development | 70.9 | 60.8 | 16.5 | % | 70.9 | 65.3 | 8.5 | % | 191.0 | 156.7 | 21.9 | % | ||||||||||||||||||||||||
¨ Activation, Installation & A/S cost | 96.9 | 83.2 | 16.5 | % | 96.9 | 91.4 | 6.1 | % | 275.6 | 240.2 | 14.7 | % | ||||||||||||||||||||||||
¨ Others | 234.1 | 219.3 | 6.8 | % | 234.1 | 210.8 | 11.0 | % | 658.7 | 640.0 | 2.9 | % | ||||||||||||||||||||||||
Operating Income | 594.5 | 413.1 | 43.9 | % | 594.5 | 601.4 | -1.2 | % | 1,748.6 | 1,494.7 | 17.0 | % | ||||||||||||||||||||||||
EBITDA | 1,311.7 | 1,163.8 | 12.7 | % | 1,311.7 | 1,314.5 | -0.2 | % | 3,874.5 | 3,757.3 | 3.1 | % | ||||||||||||||||||||||||
Non-operating Income | 83.9 | 302.1 | -72.2 | % | 83.9 | 117.6 | -28.7 | % | 430.1 | 704.4 | -38.9 | % | ||||||||||||||||||||||||
Non-operating Expense | 226.2 | 259.7 | -12.9 | % | 226.2 | 267.3 | -15.4 | % | 796.7 | 856.6 | -7.0 | % | ||||||||||||||||||||||||
Income before Income Taxes | 452.1 | 455.4 | -0.7 | % | 452.1 | 451.7 | 0.1 | % | 1,381.9 | 1,342.5 | 2.9 | % | ||||||||||||||||||||||||
Income tax | 101.6 | 104.1 | -2.4 | % | 101.6 | 108.1 | -6.0 | % | 315.2 | 289.2 | 9.0 | % | ||||||||||||||||||||||||
Net Income | 350.6 | 351.4 | -0.2 | % | 350.6 | 343.7 | 2.0 | % | 1,066.8 | 1,053.3 | 1.3 | % | ||||||||||||||||||||||||
‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | ||||||||||||||||||||||||||||
CAPEX | 647.2 | 865.2 | -25.2 | % | 647.2 | 690.4 | -6.3 | % | 1,818.4 | 1,487.1 | 22.3 | % | ||||||||||||||||||||||||
ø | Sales of Merchandise consists of sales of handsets and others. |
2
B. Balance Sheet | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ||||||||||||||||||
Total Assets | 24,394.4 | 24,029.6 | 1.5 | % | 24,394.4 | 24,180.4 | 0.9 | % | ||||||||||||||||
¨ Current assets | 6,874.6 | 6,713.1 | 2.4 | % | 6,874.6 | 6,613.5 | 3.9 | % | ||||||||||||||||
m Quick assets | 6,361.0 | 6,188.9 | 2.8 | % | 6,361.0 | 6,176.9 | 3.0 | % | ||||||||||||||||
- Cash & cash equivalents | 1,732.4 | 2,115.6 | -18.1 | % | 1,732.4 | 1,639.5 | 5.7 | % | ||||||||||||||||
- Accounts receivables | 3,702.6 | 3,365.0 | 10.0 | % | 3,702.6 | 3,615.4 | 2.4 | % | ||||||||||||||||
m Inventories | 513.5 | 524.2 | -2.0 | % | 513.5 | 436.6 | 17.6 | % | ||||||||||||||||
¨ Non-current assets | 17,519.9 | 17,316.5 | 1.2 | % | 17,519.9 | 17,566.8 | -0.3 | % | ||||||||||||||||
m Investment | 1,519.8 | 1,225.5 | 24.0 | % | 1,519.8 | 1,387.8 | 9.5 | % | ||||||||||||||||
- Investment stocks accounted in equity method | 1,314.4 | 1,047.3 | 25.5 | % | 1,314.4 | 1,197.3 | 9.8 | % | ||||||||||||||||
- Available-for-sale securities | 65.4 | 45.2 | 44.8 | % | 65.4 | 60.0 | 9.0 | % | ||||||||||||||||
m Tangible assets | 13,714.5 | 13,755.8 | -0.3 | % | 13,714.5 | 13,789.7 | -0.5 | % | ||||||||||||||||
m Intangible assets | 1,036.1 | 1,173.8 | -11.7 | % | 1,036.1 | 1,075.2 | -3.6 | % | ||||||||||||||||
m Others | 1,249.4 | 1,161.5 | 7.6 | % | 1,249.4 | 1,314.2 | -4.9 | % | ||||||||||||||||
Total Liabilities | 13,436.4 | 13,483.4 | -0.3 | % | 13,436.4 | 13,554.3 | -0.9 | % | ||||||||||||||||
¨ Current liabilities | 6,164.4 | 4,272.0 | 44.3 | % | 6,164.4 | 5,926.4 | 4.0 | % | ||||||||||||||||
m Current portion of LT debt | 2,184.2 | 476.3 | 358.6 | % | 2,184.2 | 1,920.1 | 13.8 | % | ||||||||||||||||
m Current portion of LT accrued payables | 166.4 | 146.8 | 13.3 | % | 166.4 | 164.4 | 1.2 | % | ||||||||||||||||
m Accounts payable | 1,576.9 | 827.3 | 90.6 | % | 1,576.9 | 1,236.1 | 27.6 | % | ||||||||||||||||
m Others | 2,236.8 | 2,821.6 | -20.7 | % | 2,236.8 | 2,605.7 | -14.2 | % | ||||||||||||||||
¨ Non-current liabilities | 7,272.0 | 9,211.4 | -21.1 | % | 7,272.0 | 7,627.9 | -4.7 | % | ||||||||||||||||
m Bonds | 5,844.3 | 7,637.9 | -23.5 | % | 5,844.3 | 6,267.2 | -6.7 | % | ||||||||||||||||
m Long-term borrowings | 30.9 | 77.6 | -60.1 | % | 30.9 | 33.6 | -7.8 | % | ||||||||||||||||
m Long-term accounts payables | 0.0 | 159.0 | -100.0 | % | 0.0 | 0.0 | ||||||||||||||||||
m Installation deposit | 634.3 | 723.3 | -12.3 | % | 634.3 | 654.6 | -3.1 | % | ||||||||||||||||
m Others | 762.4 | 613.7 | 24.2 | % | 762.4 | 672.6 | 13.4 | % | ||||||||||||||||
Total Stockholders’ Equity | 10,958.0 | 10,546.2 | 3.9 | % | 10,958.0 | 10,626.1 | 3.1 | % | ||||||||||||||||
¨ Common stock | 1,564.5 | 1,564.5 | 0.0 | % | 1,564.5 | 1,564.5 | 0.0 | % | ||||||||||||||||
¨ Capital surplus | 1,449.6 | 1,458.7 | -0.6 | % | 1,449.6 | 1,449.6 | 0.0 | % | ||||||||||||||||
¨ Retained earnings | 9,266.7 | 10,026.0 | -7.6 | % | 9,266.7 | 8,916.1 | 3.9 | % | ||||||||||||||||
¨ Capital adjustment | -1,262.9 | -2,507.6 | -49.6 | % | -1,262.9 | -1,262.3 | 0.1 | % | ||||||||||||||||
m Treasury stock | -955.1 | -1,407.2 | -32.1 | % | -955.1 | -955.4 | 0.0 | % | ||||||||||||||||
m Gain/loss on disposal of treasury stock | -0.3 | -791.3 | -100.0 | % | -0.3 | -0.3 | -12.3 | % | ||||||||||||||||
¨ Accumulated Other Comprehensive Income | -59.9 | 4.6 | -1396.5 | % | -59.9 | -41.9 | 43.0 | % | ||||||||||||||||
Total interesting bearing debt | 8,225.9 | 8,497.6 | -3.2 | % | 8,225.9 | 8,670.3 | -5.1 | % | ||||||||||||||||
Net debt | 6,327.1 | 6,076.2 | 4.1 | % | 6,327.1 | 6,866.3 | -7.9 | % | ||||||||||||||||
Net debt (including LT A/P) | 6,493.5 | 6,382.1 | 1.7 | % | 6,493.5 | 7,030.8 | -7.6 | % | ||||||||||||||||
Debt/ equity ratio | 122.6 | % | 142.4 | % | -19.8 | %p | 122.6 | % | 127.6 | % | -4.9 | %p | ||||||||||||
Net debt/ equity ratio | 57.7 | % | 63.0 | % | -5.2 | %p | 57.7 | % | 64.6 | % | -6.9 | %p | ||||||||||||
Net debt/ equity ratio (including LT A/P) | 59.3 | % | 66.0 | % | -6.7 | %p | 59.3 | % | 66.2 | % | -6.9 | %p | ||||||||||||
3
2. Operating Results | (unit : KRW bn) |
A. Wireless Revenue | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
¨ Service revenue | 1,766.4 | 1,639.7 | 7.7 | % | 1,766.4 | 1,754.0 | 0.7 | % | 5,203.8 | 4,767.0 | 9.2 | % | ||||||||||||||||||||||||
m Monthly base fee | 642.2 | 550.7 | 16.6 | % | 642.2 | 627.4 | 2.4 | % | 1,870.8 | 1,633.8 | 14.5 | % | ||||||||||||||||||||||||
m Airtime charge | 378.6 | 436.7 | -13.3 | % | 378.6 | 408.5 | -7.3 | % | 1,201.1 | 1,277.5 | -6.0 | % | ||||||||||||||||||||||||
m VAS / others | 67.6 | 63.1 | 7.2 | % | 67.6 | 66.4 | 1.8 | % | 188.0 | 188.2 | -0.1 | % | ||||||||||||||||||||||||
m Wireless data | 371.6 | 302.9 | 22.7 | % | 371.6 | 356.1 | 4.4 | % | 1,059.7 | 866.2 | 22.3 | % | ||||||||||||||||||||||||
m Interconnection revenue | 229.3 | 222.4 | 3.1 | % | 229.3 | 225.1 | 1.9 | % | 666.9 | 625.6 | 6.6 | % | ||||||||||||||||||||||||
m Activation fee | 37.3 | 28.9 | 29.1 | % | 37.3 | 31.8 | 17.1 | % | 100.4 | 90.2 | 11.3 | % | ||||||||||||||||||||||||
m Others | 39.7 | 35.0 | 13.2 | % | 39.7 | 38.7 | 2.5 | % | 116.9 | 85.4 | 36.8 | % | ||||||||||||||||||||||||
¨ Handset sales | 1,159.2 | 862.0 | 34.5 | % | 1,159.2 | 908.1 | 27.7 | % | 2,961.7 | 2,425.7 | 22.1 | % | ||||||||||||||||||||||||
2,925.6 | 2,501.7 | 16.9 | % | 2,925.6 | 2,662.1 | 9.9 | % | 8,165.5 | 7,192.7 | 13.5 | % | |||||||||||||||||||||||||
mMonthly base fee | | Total subscriber growth and increasing high monthly fee subscribers such as Smartphone users resulted in healthy QoQ and YoY growth. | | |||||||||||||||||||||||||||||||||
mAirtime charge | Expanded discount offerings and seasonality caused QoQ and YoY drop. | |||||||||||||||||||||||||||||||||||
mWireless data | | Surging data traffics from increasing adoption of Smartphones led to healthy QoQ and YoY growth. | | |||||||||||||||||||||||||||||||||
mVAS / others | | Despite of shrinking revenue from CID (Caller ID), rising international roaming revenue resulted in positive growth. | | |||||||||||||||||||||||||||||||||
B. Telephone Revenue | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
¨Subscriber connection | 262.8 | 291.9 | -10.0 | % | 262.8 | 267.7 | -1.8 | % | 808.2 | 900.5 | -10.3 | % | ||||||||||||||||||||||||
m Activation & Installation fee | 7.0 | 8.9 | -20.5 | % | 7.0 | 8.2 | -14.4 | % | 22.8 | 27.8 | -18.0 | % | ||||||||||||||||||||||||
m Monthly base fee | 210.0 | 240.2 | -12.6 | % | 210.0 | 216.1 | -2.8 | % | 649.6 | 743.5 | -12.6 | % | ||||||||||||||||||||||||
m Interconnection | 45.8 | 42.8 | 6.8 | % | 45.8 | 43.4 | 5.5 | % | 135.8 | 129.2 | 5.1 | % | ||||||||||||||||||||||||
¨Local | 157.7 | 189.0 | -16.6 | % | 157.7 | 165.6 | -4.7 | % | 494.5 | 592.6 | -16.6 | % | ||||||||||||||||||||||||
m Local airtime charge | 89.2 | 112.9 | -21.0 | % | 89.2 | 99.4 | -10.3 | % | 290.4 | 359.1 | -19.1 | % | ||||||||||||||||||||||||
m Local interconnection | 18.5 | 18.8 | -1.8 | % | 18.5 | 17.9 | 3.3 | % | 55.5 | 56.4 | -1.6 | % | ||||||||||||||||||||||||
m Others | 50.1 | 57.4 | -12.7 | % | 50.1 | 48.3 | 3.7 | % | 148.6 | 177.1 | -16.1 | % | ||||||||||||||||||||||||
¨Domestic long distance | 82.9 | 108.5 | -23.5 | % | 82.9 | 90.1 | -7.9 | % | 268.9 | 343.8 | -21.8 | % | ||||||||||||||||||||||||
m DLD airtime charge | 78.4 | 103.6 | -24.3 | % | 78.4 | 85.6 | -8.4 | % | 255.2 | 330.3 | -22.8 | % | ||||||||||||||||||||||||
m DLD interconnection | 4.4 | 4.7 | -6.1 | % | 4.4 | 4.3 | 2.1 | % | 13.2 | 12.8 | 3.6 | % | ||||||||||||||||||||||||
m Others | 0.2 | 0.2 | -28.6 | % | 0.2 | 0.2 | -10.1 | % | 0.5 | 0.7 | -24.1 | % | ||||||||||||||||||||||||
¨ LM revenue | 232.8 | 285.0 | -18.3 | % | 232.8 | 245.4 | -5.1 | % | 727.6 | 887.5 | -18.0 | % | ||||||||||||||||||||||||
¨ International long distance | 27.5 | 33.5 | -17.7 | % | 27.5 | 28.7 | -4.0 | % | 84.7 | 103.7 | -18.3 | % | ||||||||||||||||||||||||
¨ International long distance settlement | 53.1 | 55.0 | -3.4 | % | 53.1 | 66.8 | -20.4 | % | 158.9 | 172.5 | -7.9 | % | ||||||||||||||||||||||||
¨ VoIP | 96.4 | 87.3 | 10.5 | % | 96.4 | 91.7 | 5.1 | % | 275.1 | 179.6 | 53.2 | % | ||||||||||||||||||||||||
¨ VAS | 92.2 | 85.3 | 8.1 | % | 92.2 | 88.2 | 4.5 | % | 265.8 | 245.3 | 8.4 | % | ||||||||||||||||||||||||
¨ Public phones & 114 service | 35.5 | 37.5 | -5.4 | % | 35.5 | 35.2 | 0.9 | % | 108.0 | 116.5 | -7.3 | % | ||||||||||||||||||||||||
¨ Others | 46.6 | 55.0 | -15.4 | % | 46.6 | 49.7 | -6.3 | % | 145.3 | 159.8 | -9.0 | % | ||||||||||||||||||||||||
1,087.6 | 1,227.9 | -11.4 | % | 1,087.6 | 1,128.9 | -3.7 | % | 3,337.1 | 3,701.9 | -9.9 | % | |||||||||||||||||||||||||
m Local, DLD & LM | | Weakening subscriber number and declining traffics along with seasonality resulted in YoY and QoQ drop. | | |||||||||||||||||||||||||||||||||
m VoIP | Fast rising subscriber base resulted in YoY and QoQ growth. |
4
C. Internet Revenue | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
Internet Access | 504.0 | 513.0 | -1.7 | % | 504.0 | 510.2 | -1.2 | % | 1,525.8 | 1,555.3 | -1.9 | % | ||||||||||||||||||||||||
¨ Broadband | 472.5 | 477.5 | -1.0 | % | 472.5 | 470.2 | 0.5 | % | 1,407.7 | 1,442.4 | -2.4 | % | ||||||||||||||||||||||||
¨ Nespot | 4.7 | 5.6 | -15.5 | % | 4.7 | 4.9 | -3.1 | % | 14.7 | 18.3 | -19.7 | % | ||||||||||||||||||||||||
¨ WiBro | 25.0 | 28.9 | -13.5 | % | 25.0 | 33.8 | -26.0 | % | 99.3 | 91.6 | 8.3 | % | ||||||||||||||||||||||||
¨ Others | 1.7 | 1.0 | 80.3 | % | 1.7 | 1.3 | 28.5 | % | 4.1 | 3.0 | 37.3 | % | ||||||||||||||||||||||||
Internet Application | 172.0 | 125.8 | 36.8 | % | 172.0 | 175.9 | -2.2 | % | 502.0 | 370.4 | 35.6 | % | ||||||||||||||||||||||||
¨ IDC | 59.1 | 57.1 | 3.4 | % | 59.1 | 64.8 | -8.8 | % | 181.2 | 156.5 | 15.8 | % | ||||||||||||||||||||||||
¨ bizmeka | 43.1 | 25.6 | 68.4 | % | 43.1 | 46.8 | -7.9 | % | 135.1 | 92.6 | 45.9 | % | ||||||||||||||||||||||||
¨ IPTV | 51.8 | 25.1 | 106.2 | % | 51.8 | 46.3 | 12.0 | % | 132.6 | 66.1 | 100.6 | % | ||||||||||||||||||||||||
¨ Others | 18.0 | 17.9 | 0.6 | % | 18.0 | 18.0 | 0.1 | % | 53.1 | 28.2 | 88.5 | % | ||||||||||||||||||||||||
676.0 | 638.7 | 5.8 | % | 676.0 | 686.2 | -1.5 | % | 2,027.8 | 370.4 | 447.5 | % | |||||||||||||||||||||||||
m Broadband | | Total subscriber gain led to QoQ growth but ARPU erosion from increasing discounts to bundling and long-term contract subscribers caused YoY drop. | | |||||||||||||||||||||||||||||||||
mWiBro | | Although service revenue continued to rise from growing subscriber numbers, reduced WiBro device revenue resulted in QoQ and YoY drop. | | |||||||||||||||||||||||||||||||||
mIPTV | | Expanding subscriber base and rising PPV revenue sustained healthy YoY and QoQ growth. | | |||||||||||||||||||||||||||||||||
D. Data Revenue | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
¨ Leased line | 179.3 | 183.2 | -2.2 | % | 179.3 | 188.5 | -4.9 | % | 552.3 | 581.0 | -4.9 | % | ||||||||||||||||||||||||
m Local | 74.5 | 74.9 | -0.5 | % | 74.5 | 74.8 | -0.4 | % | 225.9 | 226.0 | -0.1 | % | ||||||||||||||||||||||||
m Domestic long distance | 67.8 | 65.6 | 3.3 | % | 67.8 | 69.8 | -2.9 | % | 208.5 | 198.1 | 5.3 | % | ||||||||||||||||||||||||
m International long distance | 4.1 | 6.7 | -39.0 | % | 4.1 | 9.0 | -54.4 | % | 17.4 | 20.0 | -13.4 | % | ||||||||||||||||||||||||
m Broadcasting & others | 32.9 | 36.0 | -8.7 | % | 32.9 | 34.9 | -5.9 | % | 100.6 | 136.9 | -26.6 | % | ||||||||||||||||||||||||
¨Kornet | 61.3 | 62.1 | -1.4 | % | 61.3 | 58.0 | 5.6 | % | 182.8 | 189.5 | -3.6 | % | ||||||||||||||||||||||||
¨VPN | 28.7 | 19.2 | 49.5 | % | 28.7 | 25.2 | 14.0 | % | 78.2 | 52.5 | 49.2 | % | ||||||||||||||||||||||||
¨National network ATM | 7.1 | 12.5 | -43.4 | % | 7.1 | 7.6 | -6.6 | % | 22.4 | 54.5 | -58.9 | % | ||||||||||||||||||||||||
¨Satellite | 34.8 | 26.3 | 32.4 | % | 34.8 | 37.5 | -7.1 | % | 106.3 | 80.2 | 32.5 | % | ||||||||||||||||||||||||
¨Others | 15.9 | 16.6 | -4.3 | % | 15.9 | 16.2 | -2.1 | % | 47.0 | 18.7 | 151.1 | % | ||||||||||||||||||||||||
326.9 | 319.9 | 2.2 | % | 326.9 | 332.9 | -1.8 | % | 989.0 | 994.1 | -0.5 | % | |||||||||||||||||||||||||
mLeased line | | Weakening demand and abnormally high international long distance revenue in the previous quarter led to minus YoY and QoQ growth. | |
5
E. Operating Expense | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
Labor Expense | 545.8 | 655.1 | -16.7 | % | 545.8 | 619.8 | -11.9 | % | 1,777.4 | 2,018.8 | -12.0 | % | ||||||||||||||||||||||||
¨ Salaries & wages | 454.3 | 471.9 | -3.7 | % | 454.3 | 467.8 | -2.9 | % | 1,384.3 | 1,436.0 | -3.6 | % | ||||||||||||||||||||||||
¨ Provision for retirement | 15.0 | 57.3 | -73.9 | % | 15.0 | 74.6 | -80.0 | % | 165.6 | 173.8 | -4.7 | % | ||||||||||||||||||||||||
¨ Employee welfare | 76.5 | 125.9 | -39.2 | % | 76.5 | 77.5 | -1.2 | % | 227.5 | 409.0 | -44.4 | % | ||||||||||||||||||||||||
Commission | 332.2 | 295.7 | 12.4 | % | 332.2 | 336.6 | -1.3 | % | 983.8 | 906.5 | 8.5 | % | ||||||||||||||||||||||||
Sales Promotion | 273.5 | 286.7 | -4.6 | % | 273.5 | 278.8 | -1.9 | % | 818.2 | 750.3 | 9.0 | % | ||||||||||||||||||||||||
Sales Commission | 512.8 | 510.5 | 0.5 | % | 512.8 | 408.1 | 25.7 | % | 1,351.2 | 1,558.7 | -13.3 | % | ||||||||||||||||||||||||
Bad Debt Expenses | 29.3 | 3.5 | 729.6 | % | 29.3 | 25.7 | 14.1 | % | 79.9 | 57.2 | 39.8 | % | ||||||||||||||||||||||||
Depreciation & Amortization | 717.3 | 750.7 | -4.4 | % | 717.3 | 713.1 | 0.6 | % | 2,125.9 | 2,262.6 | -6.0 | % | ||||||||||||||||||||||||
Advertising | 36.8 | 50.5 | -27.2 | % | 36.8 | 43.5 | -15.6 | % | 121.2 | 119.6 | 1.3 | % | ||||||||||||||||||||||||
Repair & Maintenance | 23.9 | 38.4 | -37.6 | % | 23.9 | 32.9 | -27.2 | % | 81.2 | 92.9 | -12.6 | % | ||||||||||||||||||||||||
Cost of Goods Sold | 1,147.0 | 912.8 | 25.6 | % | 1,147.0 | 952.7 | 20.4 | % | 3,055.3 | 2,317.8 | 31.8 | % | ||||||||||||||||||||||||
¨ Cost of mobile handset sold | 1,076.5 | 824.2 | 30.6 | % | 1,076.5 | 864.9 | 24.5 | % | 2,813.0 | 2,077.9 | 35.4 | % | ||||||||||||||||||||||||
¨ Others | 70.4 | 88.6 | -20.5 | % | 70.4 | 87.7 | -19.7 | % | 242.2 | 239.9 | 1.0 | % | ||||||||||||||||||||||||
Cost of Service Provided | 618.3 | 540.8 | 14.3 | % | 618.3 | 606.3 | 2.0 | % | 1,774.3 | 1,592.3 | 11.4 | % | ||||||||||||||||||||||||
¨ Cost of service | 156.4 | 127.8 | 22.4 | % | 156.4 | 166.5 | -6.1 | % | 464.9 | 385.7 | 20.5 | % | ||||||||||||||||||||||||
¨ International long distance settlement cost | 71.9 | 64.9 | 10.7 | % | 71.9 | 63.0 | 14.0 | % | 205.3 | 197.6 | 3.9 | % | ||||||||||||||||||||||||
¨ Interconnection expense | 313.4 | 305.7 | 2.5 | % | 313.4 | 312.8 | 0.2 | % | 924.2 | 897.9 | 2.9 | % | ||||||||||||||||||||||||
¨ Others | 76.7 | 42.5 | 80.6 | % | 76.7 | 64.0 | 19.9 | % | 180.0 | 111.1 | 62.0 | % | ||||||||||||||||||||||||
Research & Development | 70.9 | 60.8 | 16.5 | % | 70.9 | 65.3 | 8.5 | % | 194.8 | 156.7 | 24.3 | % | ||||||||||||||||||||||||
Activation, Installation & A/S Cost | 96.9 | 83.2 | 16.5 | % | 96.9 | 91.4 | 6.1 | % | 275.6 | 240.2 | 14.7 | % | ||||||||||||||||||||||||
Others | 234.1 | 219.3 | 6.8 | % | 234.1 | 210.8 | 11.0 | % | 654.9 | 640.0 | 2.3 | % | ||||||||||||||||||||||||
4,638.9 | 4,408.1 | 5.2 | % | 4,638.9 | 4,385.0 | 5.8 | % | 13,293.5 | 12,713.5 | 4.6 | % | |||||||||||||||||||||||||
mLabor Expense | | Declined YoY and QoQ because of labour force reduction from special ERP program in 4Q09. | | |||||||||||||||||||||||||||||||||
mRepair & Maintenance | | Decreased due to reduced repair and maintenance costs in building and infra networks. | | |||||||||||||||||||||||||||||||||
mCost of Goods Sold | Mainly increased from heavy sales of mobile handsets from rising new subscribers. | |||||||||||||||||||||||||||||||||||
mCost of Service Provided | | Rose YoY and QoQ due to increasing cost from VPN sales and Qook TV content cost. | | |||||||||||||||||||||||||||||||||
¢ Marketing Cost | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
¨ Sales Promotion | 273.5 | 286.7 | -4.6 | % | 273.5 | 278.8 | -1.9 | % | 818.2 | 750.3 | 9.0 | % | ||||||||||||||||||||||||
¨ Sales Commission | 512.8 | 510.5 | 0.5 | % | 512.8 | 408.1 | 25.7 | % | 1,351.2 | 1,558.7 | -13.3 | % | ||||||||||||||||||||||||
¨ Advertising | 36.8 | 50.5 | -27.2 | % | 36.8 | 43.5 | -15.6 | % | 121.2 | 119.6 | 1.3 | % | ||||||||||||||||||||||||
(Profits from mobile handset sold) | -82.6 | -37.8 | 118.6 | % | -82.6 | -43.2 | 91.5 | % | -148.7 | -347.7 | -57.2 | % | ||||||||||||||||||||||||
740.5 | 809.9 | -8.6 | % | 740.5 | 687.2 | 7.7 | % | 2,141.8 | 2,080.9 | 2.9 | % | |||||||||||||||||||||||||
¢ Interconnection Expenses | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
¨ MM | 180.4 | 180.5 | -0.1 | % | 180.4 | 180.6 | -0.1 | % | 531.1 | 503.3 | 5.5 | % | ||||||||||||||||||||||||
¨ ML | 7.2 | 9.0 | -20.2 | % | 7.2 | 8.0 | -10.3 | % | 22.4 | 26.3 | -14.8 | % | ||||||||||||||||||||||||
¨ LM | 100.7 | 96.7 | 4.1 | % | 100.7 | 101.1 | -0.3 | % | 297.1 | 308.8 | -3.8 | % | ||||||||||||||||||||||||
¨ Others | 25.1 | 19.4 | 29.0 | % | 25.1 | 23.1 | 8.4 | % | 73.6 | 59.5 | 23.7 | % | ||||||||||||||||||||||||
313.4 | 305.7 | 2.5 | % | 313.4 | 312.8 | 0.2 | % | 924.2 | 897.9 | 2.9 | % | |||||||||||||||||||||||||
* | Interconnection expenses may not move proportionally to voice traffic due to difference in estimation. |
6
F. Non-operating | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ‘10-Cumm | ‘09-Cumm | YoY | |||||||||||||||||||||||||||
¨ Interest Income | 34.5 | 42.8 | -19.4 | % | 34.5 | 30.1 | 14.7 | % | 89.1 | 142.1 | -37.3 | % | ||||||||||||||||||||||||
¨ Gain on foreign currency transaction | 4.5 | 6.0 | -24.1 | % | 4.5 | 6.2 | -27.1 | % | 13.9 | 27.0 | -48.7 | % | ||||||||||||||||||||||||
¨ Gain on foreign currency translation | 51.4 | 164.5 | -68.8 | % | 51.4 | -87.3 | NA | 58.3 | 182.9 | -68.1 | % | |||||||||||||||||||||||||
¨ Gain on Equity Method | 30.3 | 29.6 | 2.4 | % | 30.3 | 29.6 | 2.4 | % | 83.3 | 74.9 | 11.3 | % | ||||||||||||||||||||||||
¨ Gain on disposal of tangible assets | 0.2 | -2.4 | NA | 0.2 | 0.5 | -61.6 | % | 11.3 | 3.5 | 222.8 | % | |||||||||||||||||||||||||
¨ Others | -37.1 | 61.6 | NA | -37.1 | 138.5 | NA | 174.2 | 274.0 | -36.4 | % | ||||||||||||||||||||||||||
Non-operating Income | 83.9 | 302.1 | -72.2 | % | 83.9 | 117.6 | -28.7 | % | 430.1 | 704.4 | -38.9 | % | ||||||||||||||||||||||||
¨ Interest Expense | 125.0 | 127.9 | -2.3 | % | 125.0 | 121.1 | 3.2 | % | 381.2 | 367.2 | 3.8 | % | ||||||||||||||||||||||||
¨ Loss on foreign currency transaction | 4.6 | 7.9 | -41.8 | % | 4.6 | 7.6 | -39.4 | % | 16.2 | 30.6 | -47.1 | % | ||||||||||||||||||||||||
¨ Loss on foreign currency translation | -101.3 | -46.9 | 115.8 | % | -101.3 | 121.4 | NA | 25.8 | 19.9 | 30.1 | % | |||||||||||||||||||||||||
¨ Loss on Equity Method | 3.5 | 10.1 | -65.4 | % | 3.5 | 9.5 | -63.1 | % | 28.9 | 96.0 | -69.9 | % | ||||||||||||||||||||||||
¨ Loss on disposal of tangible assets | 71.8 | 17.7 | 305.6 | % | 71.8 | 24.9 | 188.6 | % | 118.5 | 67.6 | 75.2 | % | ||||||||||||||||||||||||
¨ Others | 122.6 | 143.0 | -14.3 | % | 122.6 | -17.2 | NA | 226.0 | 275.3 | -17.9 | % | |||||||||||||||||||||||||
Non-operating Expense | 226.2 | 259.7 | -12.9 | % | 226.2 | 267.3 | -15.4 | % | 796.7 | 856.6 | -7.0 | % | ||||||||||||||||||||||||
mFX related accounts | Stabilized Korean currency against US$ enhanced FX related account gains. | |||||||||||||||||||||||||||||||||||
m Equity method account | Shrinking deficit from KTM&S resulted in reduced losses. | |||||||||||||||||||||||||||||||||||
m Disposal of tangible assets | | Increased expenses due to enlarged disposal losses from replacing outdated and obsolete equipment. | |
7
3. Operating Highlights
1. Fixed-Line (‘000) | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ||||||||||||||||||
(1) Telephony | 19,432 | 19,819 | -2.0 | % | 19,432 | 19,477 | -0.2 | % | ||||||||||||||||
(PSTN) | 16,942 | 18,550 | -8.7 | % | 16,942 | 17,255 | -1.8 | % | ||||||||||||||||
Local | 15,966 | 17,561 | -9.1 | % | 15,966 | 16,275 | -1.9 | % | ||||||||||||||||
Group | 976 | 989 | -1.3 | % | 976 | 980 | -0.4 | % | ||||||||||||||||
(VoIP) | 2,490 | 1,269 | 96.2 | % | 2,490 | 2,222 | 12.1 | % | ||||||||||||||||
(2) Broadband | 7,315 | 6,818 | 7.3 | % | 7,315 | 7,189 | 1.8 | % | ||||||||||||||||
(3) IPTV | 1,790 | 907 | 97.4 | % | 1,790 | 1,569 | 14.0 | % | ||||||||||||||||
(4) Nespot | 275 | 304 | -9.6 | % | 275 | 282 | -2.5 | % | ||||||||||||||||
(5) WiBro | 348 | 255 | 36.3 | % | 348 | 334 | 4.1 | % | ||||||||||||||||
2. Wireless | ‘10-3Q | ‘09-3Q | YoY | ‘10-3Q | ‘10-2Q | QoQ | ||||||||||||||||||
(1) Subscribers (‘000) | ||||||||||||||||||||||||
Gross addition | 2,037 | 1,816 | 12.2 | % | 2,037 | 1,752 | 16.3 | % | ||||||||||||||||
Deactivation | 1,800 | 1,625 | 10.8 | % | 1,800 | 1,526 | 17.9 | % | ||||||||||||||||
Net addition | 237 | 191 | 24.1 | % | 237 | 226 | 5.0 | % | ||||||||||||||||
Churn rate (%) | 3.5 | % | 3.0 | % | 0.5 | %p | 3.5 | % | 3.0 | % | 0.5 | %p | ||||||||||||
15,831 | 14,904 | 6.2 | % | 15,831 | 15,594 | 1.5 | % | |||||||||||||||||
(2) ARPU (won) | ||||||||||||||||||||||||
Monthly base fee | 13,881 | 12,573 | 10.4 | % | 13,881 | 13,717 | 1.2 | % | ||||||||||||||||
Airtime charge | 8,184 | 9,970 | -17.9 | % | 8,184 | 8,931 | -8.4 | % | ||||||||||||||||
VAS / others | 1,462 | 1,440 | 1.5 | % | 1,462 | 1,452 | 0.7 | % | ||||||||||||||||
Data | 8,031 | 6,915 | 16.1 | % | 8,031 | 7,785 | 3.2 | % | ||||||||||||||||
Interconnection revenue | 4,957 | 5,077 | -2.4 | % | 4,957 | 4,921 | 0.7 | % | ||||||||||||||||
Excluding interconnection | 31,559 | 30,898 | 2.1 | % | 31,559 | 31,885 | -1.0 | % | ||||||||||||||||
Including interconnection | 36,515 | 35,975 | 1.5 | % | 36,515 | 36,807 | -0.8 | % | ||||||||||||||||
* | Wireless ARPU excluding activation fee. |
8