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 May 2012
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: May 7, 2012 KT Corporation | ||
| By: | /s/ Youngwoo Kim | |
| Name: | Youngwoo Kim | |
| Title: | Vice President | |
| By: | /s/ Jungsup Jung | |
| Name: | Jungsup Jung | |
| Title: | Team Leader | |
KT
2012 1Q Earnings Release
Investor Relations MAY 7, 2012
Disclaimer
This presentation has been prepared by KT Corp. (“the Company”). This presentation contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented.
The Company, its affiliates or representatives accept no liability whatsoever for any losses arising from any information contained in the presentation. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares of the Company, and no part of this presentation shall form the Basis of or be relied upon in
connection with any contract or commitment.
Any decision to purchase shares of the Company should be made solely on the Basis of information, which has been publicly filed with the Securities and Exchange Commission or the Korea Stock Exchange and distributed to all investors.
The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.
1
Financial Highlights
I. Financial Highlights
1. Consolidated Income Statement
2. Consolidated Statement of Financial Position & CAPEX (KT Only)
II. Business Overview (Consolidated)
III. Appendix
2
II. Business Overview
1. Wireless
K-IFRS / Consolidated
Revenue Breakdown
(Unit: KRW bn)
1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Wireless
Serv. 1,423.9 1,454.1 -2.1% 1,423.9 1,419.2 0.3%
Inter-con 188.1 191.1 -1.6% 188.1 190.5 -1.2%
Other 104.0 94.4 10.2% 104.0 109.9 -5.4%
Wireless
Wireless 1,716.0 1,739.6 -1.4% 1,716.0 1,719.6 -0.2%
Subscriber Trend
(KT Only)
(*1,000)
18,000 5%
16,299 16,296 16,391 16,563 16,599
16,000
4%
3.4%
14,000 3.1%
2.8% 2.9% 2.7% 3%
12,000
10,000 2%
1Q11 2Q11 3Q11 4Q11 1Q12
Mobile Subscribers (LHS)
Churn Rate (RHS)
Wireless Service
Decreased by 2.1% YoY due to KRW 1,000 tariff cut and continued influence of revenue discount plans
Despite seasonality, Wireless service revenue increased 0.3% QoQ
Smartphone subscribers are recorded at 8.54 mn, representing 51% of total subscriber base
Interconnection
Interconnection decreased both YoY and QoQ as wireless usage fell
(*1,000) 8,537
10,000 80.0%
351
70.0%
8,000 8,186
7,653 60.0%
6,000 51.4%
6,317 46.2% 50.0%
5,242
4,000 38.5%
3,837 32.2% 40.0%
2,000 23.5% 30.0%
0 20.0%
1Q11 2Q11 3Q11 4Q11 1Q12
LTE subscribers (LHS)
Smartphone subscribers (LHS)
% of Smartphone subscribers (RHS)
6
I. Financial Highlights
2. Statement of Financial Position & CAPEX
K-IFRS / Consolidated
(Unit:: KRW bn)
Consolidated 1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Assets 33,117.7 28,245.4 17.2% 33,117.7 32,085.4 3.2%
Cash and cash equivalents 1,571.0 1,140.8 37.7% 1,571.0 1,445.2 8.7%
Liabilities 20,668.7 16,682.1 23.9% 20,668.7 19,547.6 5.7%
Borrowings 11,451.0 10,099.4 13.4% 11,451.0 10,998.6 4.1%
Equity 12,449.0 11,563.3 7.7% 12,449.0 12,537.8 -0.7%
Capital stock 1,564.5 1,564.5 1,564.5 1,564.5
Net Debt 9,880.1 8,958.6 10.3% 9,880.1 9,553.4 3.4%
Liabilities to Equity Ratio (%) 166.0% 144.3% 21.8%p 166.0% 155.9% 10.1%p
Debt to Equity Ratio (%) 92.0% 87.3% 4.6%p 92.0% 87.7% 4.3%p
Net Debt to Equity Ratio (%) 79.4% 77.5% 1.9%p 79.4% 76.2% 3.2%p
(Unit:: KRW bn)
CAPEX (KT Only) 1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Wireless 660.9 363.1 82.0% 660.9 393.3 68.0%
Wireline 149.3 267.6 -44.2% 149.3 460.9 -67.6%
Overhead 87.2 58.2 49.8% 87.2 201.0 -56.6%
Total 897.4 688.9 30.3% 897.4 1,055.2 -15.0%
4
Business Overview
I. Financial Highlights (Consolidated) II. Business Overview (Consolidated)
1. Wireless
2. Fixed line
3. Media/Contents
4. Finance & Other Services
5. Operating Expenses III. Appendix
5
II. Business Overview
4. Finance and Others
K-IFRS / Consolidated
Revenue Breakdown
(Unit: KRW bn)
1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Finance 836.3 53.5 1462.1% 836.3 832.5 0.5%
Other
Services 261.5 237.3 10.2% 261.5 334.1 -21.7%
IT/Solution 135.2 147.0 -8.0% 135.2 186.7 -27.6%
Real Estate 44.4 39.8 11.6% 44.4 45.2 -1.8%
Other Subs. 81.9 50.6 62.0% 81.9 102.3 -19.9%
Merchandise Sales & Other Op. Revenue
(Unit: KRW bn)
1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Merch. Sales 997.5 1,071.9 -6.9% 997.5 1,190.5 -16.2%
Handsets 946.6 1,025.6 -7.7% 946.6 1,112.0 -14.9%
Other Merch. 51.0 46.2 10.2% 51.0 78.4 -35.0%
Other Op.
Revenue 52.0 234.9 -77.9% 52.0 396.5 -86.9%
Finance Revenue
Due to an inclusion of BC Card in consolidated F/S, Finance
revenue increased KRW 782.8bn YoY
KRW 770.1bn of BC Card
Revenue of consolidated F/S
Revenue rose slightly QoQ due to transaction volume
increase, despite commission fee rate fell
Other Services
IT/Solution revenue decreased YoY and QoQ due to SI
revenue fall
IT/Solution: Revenue
internet based services
Merchandise Sales
Due to the decrease in the wireless activation in 1Q12, merchandise sales fell YoY and QoQ was reflected in Finance
Other Operating Revenue
Due to the base effect of real estate monetization in 4Q11, Other Operating Revenue fell QoQ
Disposal gain of equity method investment in Skylife, which was recorded at KRW 187.4bn in 1Q11, led to YoY decrease
9
II. Business Overview
2. Fixed Line
K-IFRS / Consolidated
Revenue Breakdown
(Unit: KRW bn)
1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Telephony 886.8 972.1 -8.8% 886.8 932.6 -4.9%
Broadband 455.0 481.8 -5.6% 455.0 460.1 -1.1%
Lease Line 322.1 299.4 7.6% 322.1 297.9 8.1%
Service
Fixed Line 1,663.9 1,753.3 -5.1% 1,663.9 1,690.6 -1.6%
Subscriber Trend
(KT Only)
(*1,000)
30,000 26,938 26,901 26,952 26,982 26,987
7,552 7,629 7,724 7,823 7,922
20,000
2,932 3,038 3,156 3,230 3,294
16,453 16,234 16,071 15,929 15,771
10,000
63.4% 64.3%
62.2%
60.8%
59.3%
0
1Q11 2Q11 3Q11 4Q11 1Q12
Broadband VoIP
PSTN Broadband Bundling rate
Telephony
Telephony revenue decreased by 8.8% YoY due to subscriber and usage drops, but the revenue decrease alleviated
Compared to PSTN line losses of 181k in 1Q11, 1Q12 line loss slowed down, recording 158k
Broadband
Broadband subscribers are growing but due to increases in bundling, revenue decreased by 5.6% YoY
Broadband bundling rate for 1Q12 recorded at 64.3% and the trend continues to grow
Leased Line Service
Leased line and satellite service revenues increased for both YoY and QoQ
7
II. Business Overview
3. Media/Contents
K-IFRS / Consolidated
Revenue Breakdown
(Unit: KRW bn)
1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Media 219.7 166.6 31.8% 219.7 209.4 4.9%
Contents 10.8 18.8 -42.4% 10.8 5.8 85.3%
Media & 230.5 185.5 24.3% 230.5 215.2 7.1%
Contents
Subscriber Trend
(KT Only)
(*1,000)
8,000 4,547 4,709 4,900 5,125 5,341
24.4%
23.3%
6,000 22.1%
20.5%
18.6%
4,000 1,549 1,656 1,761 1,881 2,015
844 966 1,081 1,195 1,301
2,000
2,154 2,088 2,058 2,049 2,025
0
1Q11 2Q11 3Q11 4Q11 1Q12
OTV OTS Skylife Only % of OTS
IPTV
IPTV revenue was recorded at KRW 100.8bn, representing an increase of 59.6% YoY
IPTV subscriber recorded 3.31mn which includes OTS subscriber of 1.3mn
kt Skylife
Service revenue was stable but value added service revenue increased along with the subscriber increase
Media: Revenue comprised of IPTV and kt Skylife
Contents: Revenue comprised of kt mhows, kt music, sidusFNH and others
8
II. Business Overview
4. Finance and Others
K-IFRS / Consolidated
Revenue Breakdown
(Unit: KRW bn)
1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Finance 836.3 53.5 1462.1% 836.3 832.5 0.5%
Other
Services 261.5 237.3 10.2% 261.5 334.1 -21.7%
IT/Solution 135.2 147.0 -8.0% 135.2 186.7 -27.6%
Real Estate 44.4 39.8 11.6% 44.4 45.2 -1.8%
Other Subs. 81.9 50.6 62.0% 81.9 102.3 -19.9%
Merchandise Sales & Other Op. Revenue
(Unit: KRW bn)
1Q12 1Q11 YoY 1Q12 4Q11 QoQ
Merch. Sales 997.5 1,071.9 -6.9% 997.5 1,190.5 -16.2%
Handsets 946.6 1,025.6 -7.7% 946.6 1,112.0 -14.9%
Other Merch. 51.0 46.2 10.2% 51.0 78.4 -35.0%
Other Op.
Revenue 52.0 234.9 -77.9% 52.0 396.5 -86.9%
Finance Revenue
Due to an inclusion of BC Card in consolidated F/S, Finance
revenue increased KRW 782.8bn YoY
KRW 770.1bn of BC Card revenue was reflected in finance
Revenue of consolidated F/S
Revenue rose slightly QoQ due to transaction volume
increase, despite commission fee rate fell
Other Services
IT/Solution revenue decreased YoY and QoQ due to SI
revenue fall
IT/Solution: Revenue Comprised of SI, IDC, and other
internet based services
Merchandise Sales
Due to the decrease in the wireless activation in 1Q12, merchandise sales fell YoY and QoQ
Other Operating Revenue
Due to the base effect of real estate monetization in 4Q11, Other Operating Revenue fell QoQ
Disposal gain of equity method investment in Skylife, which was recorded at KRW 187.4bn in 1Q11, led to YoY decrease
9
Appendix
K-IFRS Statement of Financial Position
(Unit: KRW bn)
Consolidated 1Q11 2Q11 3Q11 4Q11 1Q12
Asset 28,245 29,080 29,473 32,085 33,118
Current assets 7,958 8,182 8,434 9,791 10,919
Cash and cash equivalents 1,141 1,118 1,246 1,445 1,571
Trade and other current receivables 4,542 4,764 4,867 5,295 5,210
Inventories 737 729 646 675 895
Other current assets 1,538 1,572 1,675 2,376 3,242
Non-current assets 20,288 20,897 21,038 22,295 22,198
Trade and other current receivables 1,308 1,411 1,401 1,723 1,513
P.P.E 13,556 13,582 13,724 14,023 14,196
Other non-current assets 5,423 5,904 5,914 6,549 6,490
Liabilities 16,682 17,079 17,234 19,548 20,669
Current liabilities 8,000 8,397 7,731 8,745 10,572
Trade and other current payables 4,643 4,647 4,074 5,890 6,606
Short-term borrowings 2,610 3,034 3,034 2,112 3,074
Other current liabilities 747 716 623 742 892
Non-current liabilities 8,682 8,682 9,503 10,802 10,097
Trade and other current payables 381 651 655 652 658
Long-term borrowings 7,489 7,130 7,988 8,886 8,377
Other non-current liabilities 812 900 860 1,265 1,062
Equity 11,563 12,001 12,239 12,538 12,449
KT Stand Alone 1Q11 2Q11 3Q11 4Q11 1Q12
Asset 24,731 25,509 25,791 26,454 27,126
Current assets 5,905 6,172 6,218 6,376 7,072
Cash and cash equivalents 804 874 891 790 809
Trade and other current receivables 4,217 4,426 4,517 4,832 4,740
Inventories 606 596 487 514 723
Other current assets 278 276 323 239 800
Non-current assets 18,825 19,337 19,573 20,078 20,054
Trade and other current receivables 1,167 1,298 1,297 1,608 1,396
P.P.E 12,963 13,100 13,224 13,305 13,464
Other non-current assets 4,696 4,939 5,052 5,165 5,194
Liabilities 13,839 14,192 14,242 14,720 15,503
Current liabilities 6,723 7,003 6,238 6,036 7,347
Trade and other current payables 3,764 4,371 3,878 4,425 4,824
Short-term borrowings 1,773 2,073 1,904 1,086 1,877
Other current liabilities 1,187 560 456 524 646
Non-current liabilities 7,116 7,189 8,004 8,684 8,155
Trade and other current payables 287 597 604 597 611
Long-term borrowings 6,178 5,915 6,763 7,415 6,811
Other non-current liabilities 651 677 637 672 734
Equity 10,892 11,317 11,549 11,734 11,623
13
Appendix
I. Financial Highlights (Consolidated) II. Business Overview (Consolidated) III. Appendix
1. Income Statement (Consolidated/KT Only)
2. Statement of Financial Position (Consolidated/KT Only)
3. Factsheet (KT Only)
11
Appendix
K-IFRS Income Statement – Quarterly
(Unit: KRW bn)
[Consolidated I/S] 1Q11 2Q11 3Q11 4Q11 1Q12
Operating revenue 5,276 5,343 4,992 6,379 5,758
Service Revenue 3,969 4,074 4,050 4,792 4,708
Wireless 1,740 1,773 1,737 1,720 1,716
Fixed line 1,753 1,761 1,746 1,691 1,664
Media/Contents 185 187 213 215 231
Finance 54 59 51 833 836
Other service 237 293 303 334 262
Merchandise revenue 1,072 1,186 877 1,190 998
Other operating revenue 235 83 65 397 52
Operating expense 4,555 4,910 4,476 6,075 5,183
Service expense 3,394 3,603 3,486 4,502 4,129
Labor expense 684 724 701 748 733
General expense 1,524 1,610 1,637 2,555 2,364
Depreciation 722 741 751 746 763
Commissions 321 365 349 414 333
Advertising 39 42 40 63 24
Financial business expense 0 0 0 708 693
Other general expense 442 461 497 625 550
Cost of service provided 630 768 714 721 600
Cost of service 275 382 327 358 258
Interconnection fees 284 285 273 273 259
Other cost of service 71 101 113 91 83
Seling expense 556 502 434 477 431
Sales expense 496 461 395 474 399
Bad debt expense 60 40 40 3 33
Cost of merchandise sold 1,116 1,222 914 1,268 993
Other operating expense 45 85 76 305 61
Operating income 721 432 516 304 575
EBITDA 1,443 1,173 1,267 1,050 1,338
Non-operating income(loss) -61 -72 -153 -91 -50
Non-operating income 131 112 28 -3 140
Non-operating expense 197 199 187 57 194
Equity Method gain/loss 5 15 7 -30 4
Income before income taxes 660 361 364 213 525
Income tax 109 102 108 -3 118
Income from continued operations 551 259 256 216 407
Income from discont. operations 4 162 0 5 0
Net income 555 421 256 220 408
Net income contributable to KT 550 418 252 227 387
[KT Stand alone I/S] 1Q11 2Q11 3Q11 4Q11 1Q12
Operating revenue 4,863 5,333 4,705 5,266 4,645
Service Revenue 3,728 3,808 3,803 3,724 3,640
Wireless 1,729 1,750 1,713 1,694 1,691
Fixed line 1,766 1,774 1,771 1,731 1,682
Media 63 74 80 100 102
Finance
Other service 170 211 239 199 164
Sales of merchandise 1,088 1,190 842 1,141 961
Other operating revenue 48 335 60 401 44
Operating expense 4,338 4,671 4,199 4,932 4,129
Service expense 3,135 3,305 3,191 3,429 3,086
Labor expense 585 624 585 591 602
General expense 1,449 1,525 1,546 1,725 1,517
Depreciation 693 708 717 720 725
Commissions 335 376 360 415 333
Advertising 33 38 36 58 22
Financial business expense
Other general expense 388 404 433 532 438
Cost of service provided 530 609 585 576 510
Cost of service 176 224 199 213 169
Interconnection fees 284 285 272 272 259
Other cost of service 71 101 114 91 83
Seling expense 571 546 475 536 457
Sales expense 528 515 444 538 437
Bad debt expense 43 31 31 -2 20
Cost of merchandise sold 1,162 1,276 932 1,242 989
Other operating expense 41 90 75 261 55
Operating income 525 661 506 333 516
EBITDA 1,218 1,369 1,224 1,053 1,240
Non-operating income(loss) -65 -87 -156 -60 -54
Non-operating income 125 106 22 -10 134
Non-operating expense 191 193 178 50 188
Income before income taxes 460 575 351 273 462
Income tax 105 147 98 19 98
Net income 354 428 253 254 363
12
Appendix
K-IFRS Statement of Financial Position
(Unit: KRW bn)
Consolidated 1Q11 2Q11 3Q11 4Q11 1Q12
Asset 28,245 29,080 29,473 32,085 33,118
Current assets 7,958 8,182 8,434 9,791 10,919
Cash and cash equivalents 1,141 1,118 1,246 1,445 1,571
Trade and other current receivables 4,542 4,764 4,867 5,295 5,210
Inventories 737 729 646 675 895
Other current assets 1,538 1,572 1,675 2,376 3,242
Non-current assets 20,288 20,897 21,038 22,295 22,198
Trade and other current receivables 1,308 1,411 1,401 1,723 1,513
P.P.E 13,556 13,582 13,724 14,023 14,196
Other non-current assets 5,423 5,904 5,914 6,549 6,490
Liabilities 16,682 17,079 17,234 19,548 20,669
Current liabilities 8,000 8,397 7,731 8,745 10,572
Trade and other current payables 4,643 4,647 4,074 5,890 6,606
Short-term borrowings 2,610 3,034 3,034 2,112 3,074
Other current liabilities 747 716 623 742 892
Non-current liabilities 8,682 8,682 9,503 10,802 10,097
Trade and other current payables 381 651 655 652 658
Long-term borrowings 7,489 7,130 7,988 8,886 8,377
Other non-current liabilities 812 900 860 1,265 1,062
Equity 11,563 12,001 12,239 12,538 12,449
KT Stand Alone 1Q11 2Q11 3Q11 4Q11 1Q12
Asset 24,731 25,509 25,791 26,454 27,126
Current assets 5,905 6,172 6,218 6,376 7,072
Cash and cash equivalents 804 874 891 790 809
Trade and other current receivables 4,217 4,426 4,517 4,832 4,740
Inventories 606 596 487 514 723
Other current assets 278 276 323 239 800
Non-current assets 18,825 19,337 19,573 20,078 20,054
Trade and other current receivables 1,167 1,298 1,297 1,608 1,396
P.P.E 12,963 13,100 13,224 13,305 13,464
Other non-current assets 4,696 4,939 5,052 5,165 5,194
Liabilities 13,839 14,192 14,242 14,720 15,503
Current liabilities 6,723 7,003 6,238 6,036 7,347
Trade and other current payables 3,764 4,371 3,878 4,425 4,824
Short-term borrowings 1,773 2,073 1,904 1,086 1,877
Other current liabilities 1,187 560 456 524 646
Non-current liabilities 7,116 7,189 8,004 8,684 8,155
Trade and other current payables 287 597 604 597 611
Long-term borrowings 6,178 5,915 6,763 7,415 6,811
Other non-current liabilities 651 677 637 672 734
Equity 10,892 11,317 11,549 11,734 11,623
13
Appendix
Factsheet (KT Only)
Wireless 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 QoQ YoY
Total Wireless Subscribers 16,726 16,776 17,042 17,307 17,435 0.7% 4.2%
3G + LTE 16,299 16,296 16,391 16,563 16,599 0.2% 1.8%
WiBro 427 480 651 744 836 12.3% 96.0%
Mobile Subscribers (*1,000)
Gross addition 1,684 1,861 1,621 1,808 1,410 -22.0% -16.3%
Deactivation 1,426 1,864 1,526 1,636 1,375 -16.0% -3.6%
Net addition 258 -3 95 172 36 -79.3% -86.2%
Churn rate (%) 2.8% 3.4% 2.9% 3.1% 2.7% -0.4%p -0.1%p
Subscribers 16,299 16,296 16,391 16,563 16,599 0.2% 1.8%
Mobile: CDMA+WCDMA
Mobile ARPU (Won)
Wireless Service 30,247 30,178 29,609 28,826 28,722 -0.4% -5.0%
Interconnection 4,014 4,118 3,961 3,943 3,869 -1.9% -3.6%
ARPU: WCDMA+LTE subscribers
Wireless Service : Voice + Data
Wireline 1Q11 2Q11 3Q11 4Q11 1Q12 QoQ YoY
Subscribers (*1,000)
Telephony 19,386 19,272 19,227 19,159 19,065 -0.5% -1.7%
PSTN 16,453 16,234 16,071 15,929 15,771 -1.0% -4.1%
VoIP 2,932 3,038 3,156 3,230 3,294 2.0% 12.4%
Broadband 7,552 7,629 7,724 7,823 7,922 1.3% 4.9%
IPTV 2,393 2,622 2,842 3,076 3,316 7.8% 38.5%
14