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 August 2012
Commission File Number 1-14926
KT Corporation
(Translation of registrant’s name into English)
206 Jeongja-dong
Bundang-gu, Seongnam-si
Gyeonggi-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 þ 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 þ
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: August 3, 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 2Q Earnings Release
Investor Relations AUGUST 3, 2012
Disclaimer
This presentation has been prepared by 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 |
|
Contents
Financial Highlights (Consolidated)
1. Income Statement
2. Subsidiaries
3. Operating Revenue
4. Operating Income
5. Statement of Financial Position
6. Capital Expenditure Business Overview (Consolidated) Q&A
2 |
|
Financial Highlights
K-IFRS / Consolidated
Income Statement
Operating revenue 5,773.3bn
(QoQ) +0.3% / (YoY) +8.1%
Operating income 371.7bn (QoQ) -35.3%/ (YoY) -14.0%
Net income 238.0bn
(QoQ) -41.6%/ (YoY) -43.4%
EBITDA 1,145.0bn (QoQ) -14.4%/ (YoY) -2.4%
(Unit: KRW bn)
Income Statement 2Q11 1Q12 2Q12 QoQ YoY Operating revenue 5,342.8 5,757.8 5,773.3 0.3% 8.1% Operating expense 4,910.4 5,183.0 5,401.5 4.2% 10.0%
Operating income 432.4 574.7 371.7 -35.3% -14.0%
Margin (%) 8.1% 10.0% 6.4%
Non-operating income (loss) -71.5 -49.6 -71.3 43.8% -0.4% Income before income taxes 360.9 525.2 300.5 -42.8% -16.7% Net income 420.6 407.6 238.0 -41.6% -43.4%
Margin (%) 7.9% 7.1% 4.1%
EBITDA 1,172.9 1,338.0 1,145.0 -14.4% -2.4%
Margin (%) 22.0% 23.2% 19.8%
3 |
|
Financial Highlights
K-IFRS / Consolidated
Subsidiaries
BC Card
Revenue: 794.7bn Operating income: 47bn
kt Skylife
Revenue: 131.7bn
Operating income: 16.2bn
kt Rental
Revenue: 173.7bn Operating income : 21bn (Equity method income: 4.7bn)
Subsidiaries contributed 16% of operating income up 5.8%p from 1Q12
results Financials are stand of major alone subsidiaries basis
(Unit: KRW bn)
*NTC Disposal gain of KRW 238.9bn in 2Q11 has been normalized ** kt Rental has been included in the equity method income (kt Rental financials will be consolidated from 3Q12 )
432.4* 574.7 371.7
58.8
16.0%
10.0
10.2%
2.3% 59.3 422.4 516 312
2Q11 1Q12 2Q12
Subsidiaries’ Operating income kt’s Operating income % of Subs’ Operating income
4 |
|
Financial Highlights
K-IFRS / Consolidated
Operating Revenue
Wireless revenue 1,740.1bn
(QoQ) +1.4%/ (YoY) -1.9%
Wireline revenue
1,611.3bn
(QoQ) -3.2%/ (YoY) -8.5%
Media/Contents revenue 247.6bn
(QoQ) +7.4%/ (YoY) +32.6%
Finance revenue 844.1bn
(QoQ) +0.9%/ (YoY) +1,328% *BC Card: included since 4Q11
Merchandise revenue 972.8bn (QoQ) -2.5%/ (YoY) -18.0%
(Unit: KRW bn)
5 |
|
Wireless
Wireline
Media/Contents Finance/Others Merchandise/Others
5,342.8
1,773.5
1,760.8
352 186. .6 7 1,269.3
2Q11
5,757.8
1,716.0
1,663.9
230.5
1,097.8
1,049.5
1Q12
5,773.3
1,740.1
1,611.3
247.6
1,137.0
1,037.3
2Q12
Financial Highlights
K-IFRS / Consolidated
Operating Expense
Labor Cost 740.5bn (QoQ) +1.0%/ (YoY) +2.3%
General Expense 2,441bn (QoQ) +3.3% / (YoY) +51.7%
Cost of Service Provided 647.7bn (QoQ) +7.9%/ (YoY) -15.7%
Selling Expense 579.2bn
(QoQ) +34.2%/ (YoY) +15.5%
Cost of Merchandise 951.2bn (QoQ) -4.2%/ (YoY) -22.2%
(Unit: KRW bn)
6 |
|
Labor cost
General expenses
Cost of service provided Selling expenses
Cost of
Merchandise/Other expenses
4,910.4
723.8
1,609.5
768.0
501.7
1,307.4
2Q11
5,183.0
733.5
2,363.6
600.3 431.5
1,054.1
1Q12
5,401.5
740.5
2,441.0
647.7
579.2
993.1
2Q12
Financial Highlights
K-IFRS / Consolidated
Financial Position
Debt Position
Total Debt: 10,999.2bn Net Debt: 9,597.9bn
Debt Ratio
Liability to Equity: 153.4% Net Debt to Equity: 75.6%
Strengthen financial stability by securitization of handset receivables
- 1.3tn have been liquidated in 1H12
7 |
|
(Unit: KRW bn)
Consolidated 2Q11 1Q12 2Q12 QoQ YoY Assets 29,079.8 33,117.7 32,170.0 -2.9% 10.6% Cash and cash equivalents 1,117.9 1,571.0 1,401.3 -10.8% 25.3%
Liabilities 17,078.8 20,668.7 19,474.2 -5.8% 14.0% Borrowings 10,164.8 11,451.0 10,999.2 -3.9% 8.2%
Equity 12,000.9 12,449.0 12,695.8 2.0% 5.8% Capital stock 1,564.5 1,564.5 1,564.5 0.0% 0.0% Net Debt 9,046.9 9,880.1 9,597.9 -2.9% 6.1%
166.0% 153.4% 142.3%
79.4%
75.4% 75.6% 2Q11 1Q12 2Q12
Financial Highlights
K-IFRS / Stand Alone
CAPEX
Total Capex
2Q: 998.5bn 1H: 1,890bn
LTE Capex
2Q: 399.2bn 1H: 843.6bn
Annual Capex Guidance has been adjusted due to additional coverage of LTE
(before) 3.5tn
(after) 3.8tn
(Unit: KRW bn)
8 |
|
Overhead Wireless Wireline Depreciation
998.5 897.4 806.3 149.6
87.2
60.5
707.5 724.6 733.5 560.4 457.3 660.9
288.5 288.5 149.3
2Q11 1Q12 2Q12
Contents
Financial Highlights (Consolidated) Business Overview (Consolidated)
1. Wireless
2. Wireline
3. Media/Contents
4. Finance & Others Q&A
9
Business Overview
K-IFRS / Consolidated
Wireless
LTE subscriber expansion led to ARPU increase, resulting 1.4% QoQ growth
Smartphone subscribers recorded 9.14m, representing 55.4% of total subscribers
LTE subscribers stand at
1.17m as of 2Q
LTE subs target 4m plausible
(Unit: KRW bn)
Wireless 2Q11 1Q12 2Q12 QoQ YoY
Wireless Service 1,475.9 1,423.9 1,455.8 2.2% -1.4% Interconnection 197.7 188.1 170.1 -9.6% -14.0% Other wireless service 99.9 104.0 114.2 9.9% 14.3%
Total 1,773.5 1,716.0 1,740.1 1.4% -1.9%
10
(Unit: 1,000 / %)
8,537 9,135
351 1,170 7,653 8,186 7,966 5,242 6,317 55.4%
51.4% 3,837 46.2%
38.5%
23.5% 32.2%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
LTE Smartphone % of Smartphone
Business Overview
K-IFRS / Consolidated
Wireline
Decline of telephony subscribers has slowed down but MOU continues to drop, leading QoQ and YoY fall in revenue
Broadband subscribers increased recording
7.97m
Bundling rate continues to grow recording 69% based on broadband subscribers
(Unit: KRW bn)
Wireline 2Q11 1Q12 2Q12 QoQ YoY
Telephony 955.7 886.8 856.9 -3.4% -10.3% Broadband 480.6 455.0 431.1 -5.2% -10.3% Line Lease 324.5 322.1 323.3 0.4% -0.4%
Total 1,760.8 1,663.9 1,611.3 -3.2% -8.5%
11
(Unit: 1,000 / %)
26,938 26,901 26,952 26,982 26,987 26,923
7,552 2,932 16,453
59%
1Q11
7,629 3,038 16,234
61%
2Q11
7,724
3,156 16,071
66%
3Q11
7,823
3,230 15,929
67%
4Q11
7,922
3,294 15,771 68%
1Q12
7,967
3,326 15,630 69%
2Q12
Broadband VoIP PSTN BB Bundling
Business Overview
K-IFRS / Consolidated
Media/Contents
Media Revenue
Subscriber and ARPU increase led 42.5% yoy growth
kt Media Subscribers—kt Group : 5.59m—kt Alone : 3.57m
(OTS 1.42m)
(Unit: KRW bn)
Media/Contents 2Q11 1Q12 2Q12 QoQ YoY
Media 163.6 219.7 233.1 6.1% 42.5% Others 23.2 10.8 14.5 33.6% -37.5%
Total 186.7 230.5 247.6 7.4% 32.6%
12
(Unit: 1,000 / %)
4,547 4,709 4,900 5,125 5,341 5,593
2,154
844
1,549
1Q11
2,088
966
1,656
2Q11
2,058
1,081
1,761
3Q11
2,049
1,195
1,881
4Q11
OTS
2,025
1,301
2,015
1Q12
2,022
1,421
2,150
2Q12
OTV
Skylife Only
Business Overview
K-IFRS / Consolidated
Finance/Other Services
Finance revenue
Significant growth due to inclusion of BC Card in consolidated statements
Other service revenue
11.6% QoQ growth due to SI revenue increase
Others
Merchandise revenue
Decreased 18% YoY due to less demands in handsets
(Unit: KRW bn)
2Q11 1Q12 2Q12 QoQ YoY Finance 59.1 836.3 844.1 0.9% 1328.3% Other Services 293.5 261.5 292.8 12.0% -0.2%
IT/Solution 197.3 135.2 161.2 19.2% -18.3% Real Estate 40.8 44.4 44.2 -0.3% 8.4% Other Subsidiaries 55.3 81.9 87.4 6.7% 58.0%
2Q11 1Q12 2Q12 QoQ YoY Merchandise Sales 1,185.8 997.5 972.8 -2.5% -18.0% Other Revenue 83.4 52.0 64.5 24.1% -22.7%
13
Q&A
14
Appendix
Contents
Appendix
1. Income Statements (Consolidated / Stand Alone)
2. Statements of Financial Position (Consolidated / Stand Alone)
3. Factsheet (Stand Alone)
15
Appendix – Income Statments
(Unit: KRW bn)
[Consolidated I/S] 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Operating revenue 5,276 5,343 4,992 6,379 5,758 5,773 Service Revenue 3,969 4,074 4,050 4,792 4,708 4,736
Wireless 1,740 1,773 1,737 1,720 1,716 1,740 Fixed line 1,753 1,761 1,746 1,691 1,664 1,611 Media/Contents 185 187 213 215 231 248 Finance 54 59 51 833 836 844 Other service 237 293 303 334 262 293
Merchandise revenue 1,072 1,186 877 1,190 998 973 Other operating revenue 235 83 65 397 52 65
Operating expense 4,555 4,910 4,476 6,075 5,183 5,402 Service expense 3,394 3,603 3,486 4,502 4,129 4,408 Labor expense 684 724 701 748 733 740 General expense 1,524 1,610 1,637 2,555 2,364 2,441
Depreciation 722 741 751 746 763 773 Commissions 321 365 349 414 333 346 Advertising 39 42 40 63 24 40 Financial business expense 0 0 0 708 693 701 Other general expense 442 461 497 625 550 581
Cost of service provided 630 768 714 721 600 648
Cost of service 275 382 327 358 258 339 Interconnection fees 284 285 273 273 259 239 Other cost of service 71 101 113 91 83 69
Seling expense 556 502 434 477 431 579
Sales expense 496 461 395 474 399 549 Bad debt expense 60 40 40 3 33 30
Cost of merchandise sold 1,116 1,222 914 1,268 993 951 Other operating expense 45 85 76 305 61 42
Operating income 721 432 516 304 575 372
EBITDA 1,443 1,173 1,267 1,050 1,338 1,145
Non-operating income(loss) -61 -72 -153 -91 -50 -71
Non-operating income 131 112 28 -3 140 9 Non-operating expense 197 199 187 57 194 88 Equity Method gain/loss 5 15 7 -30 4 8
Income before income taxes 660 361 364 213 525 300
Income tax 109 102 108 -3 118 63
Net income 555 421 256 220 408 238
Net income contributable to KT 550 418 252 227 387 220
[KT Stand alone I/S] 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Operating revenue 4,863 5,333 4,705 5,266 4,645 4,634 Service Revenue 3,728 3,808 3,803 3,724 3,640 3,622
Wireless 1,729 1,750 1,713 1,694 1,691 1,715 Fixed line 1,766 1,774 1,771 1,731 1,682 1,616 Media 63 74 80 100 102 110 Finance Other service 170 211 239 199 164 180
Sales of merchandise 1,088 1,190 842 1,141 961 953 Other operating revenue 48 335 60 401 44 59
Operating expense 4,338 4,671 4,199 4,932 4,129 4,322 Service expense 3,135 3,305 3,191 3,429 3,086 3,331 Labor expense 585 624 585 591 602 602 General expense 1,449 1,525 1,546 1,725 1,517 1,594
Depreciation 693 708 717 720 725 734 Commissions 335 376 360 415 333 347 Advertising 33 38 36 58 22 38 Financial business expense Other general expense 388 404 433 532 438 476
Cost of service provided 530 609 585 576 510 508
Cost of service 176 224 199 213 169 199 Interconnection fees 284 285 272 272 259 239 Other cost of service 71 101 114 91 83 70
Seling expense 571 546 475 536 457 627
Sales expense 528 515 444 538 437 607 Bad debt expense 43 31 31 -2 20 21
Cost of merchandise sold 1,162 1,276 932 1,242 989 950 Other operating expense 41 90 75 261 55 40
Operating income 525 661 506 333 516 312
EBITDA 1,218 1,369 1,224 1,053 1,240 1,046
Non-operating income(loss) -65 -87 -156 -60 -54 -78
Non-operating income 125 106 22 -10 134 3 Non-operating expense 191 193 178 50 188 81
Income before income taxes 460 575 351 273 462 234
Income tax 105 147 98 19 98 45
Net income 354 428 253 254 363 189
16
Appendix – Statements of Financial Position
(Unit: KRW bn)
Consolidated 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Asset 28,245 29,080 29,473 32,085 33,118 32,170
Current assets 7,958 8,182 8,434 9,791 10,919 9,831
Cash and cash equivalents 1,141 1,118 1,246 1,445 1,571 1,401 Trade and other current rec. 4,542 4,764 4,867 5,295 5,210 4,927 Inventories 737 729 646 675 895 942 Other current assets 1,538 1,572 1,675 2,376 3,242 2,560
Non-current assets 20,288 20,897 21,038 22,295 22,198 22,339
Trade and other current rec. 1,308 1,411 1,401 1,723 1,513 1,211 P.P.E 13,556 13,582 13,724 14,023 14,196 14,493 Other non-current assets 5,423 5,904 5,914 6,549 6,490 6,635
Liabilities 16,682 17,079 17,234 19,548 20,669 19,474
Current liabilities 8,000 8,397 7,731 8,745 10,572 9,585
Trade and other current pay. 4,643 4,647 4,074 5,890 6,606 5,909 Short-term borrowings 2,610 3,034 3,034 2,112 3,074 2,833 Other current liabilities 747 716 623 742 892 843
Non-current liabilities 8,682 8,682 9,503 10,802 10,097 9,889
Trade and other current pay. 381 651 655 652 658 585 Long-term borrowings 7,489 7,130 7,988 8,886 8,377 8,167 Other non-current liabilities 812 900 860 1,265 1,062 1,138
Equity 11,563 12,001 12,239 12,538 12,449 12,696
KT Stand Alone 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Asset 24,731 25,509 25,791 26,454 27,126 26,412
Current assets 5,905 6,172 6,218 6,376 7,072 6,310
Cash and cash equivalents 804 874 891 790 809 791 Trade and other current rec. 4,217 4,426 4,517 4,832 4,740 4,500 Inventories 606 596 487 514 723 764 Other current assets 278 276 323 239 800 254
Non-current assets 18,825 19,337 19,573 20,078 20,054 20,103
Trade and other current rec. 1,167 1,298 1,297 1,608 1,396 1,099 P.P.E 12,963 13,100 13,224 13,305 13,464 13,744 Other non-current assets 4,696 4,939 5,052 5,165 5,194 5,260
Liabilities 13,839 14,192 14,242 14,720 15,503 14,592
Current liabilities 6,723 7,003 6,238 6,036 7,347 6,582
Trade and other current pay. 3,764 4,371 3,878 4,425 4,824 4,322 Short-term borrowings 1,773 2,073 1,904 1,086 1,877 1,657 Other current liabilities 1,187 560 456 524 646 603
Non-current liabilities 7,116 7,189 8,004 8,684 8,155 8,010
Trade and other current pay. 287 597 604 597 611 543 Long-term borrowings 6,178 5,915 6,763 7,415 6,811 6,658 Other non-current liabilities 651 677 637 672 734 809
Equity 10,892 11,317 11,549 11,734 11,623 11,821
17
Wireless 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 QoQ YoY
Total Wireless Subscribers 16,726 16,776 17,042 17,307 17,435 17,389 -0.3% 3.7%
3G + LTE 16,299 16,296 16,391 16,563 16,599 16,488 -0.7% 1.2%
WiBro 427 480 651 744 836 902 7.8% 87.7%
Mobile Subscribers (*1,000)
Gross addition 1,684 1,861 1,621 1,808 1,423 1,271 -10.7% -31.7%
Deactivation 1,426 1,864 1,526 1,636 1,387 1,382 -0.4% -25.9%
Net addition 258 -3 95 172 36 -111
Churn rate (%) 2.8% 3.4% 2.9% 3.1% 2.7% 2.8% 0.1%p -0.6%p
Subscribers 16,299 16,296 16,391 16,563 16,599 16,488 -0.7% 1.2%
Mobile: CDMA+WCDMA
Mobile ARPU (Won)
Wireless Service 30,247 30,178 29,609 28,826 28,722 29,447 2.5% -2.4%
Interconnection 4,014 4,118 3,961 3,943 3,869 3,531 -8.7% -14.2%
ARPU: WCDMA+LTE subscribers
Wireless Service : Voice + Data
Wireline 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 QoQ YoY
Subscribers (*1,000)
Telephony 19,386 19,272 19,227 19,159 19,065 18,957 -0.6% -1.6%
PSTN 16,453 16,234 16,071 15,929 15,771 15,630 -0.9% -3.7%
VoIP 2,932 3,038 3,156 3,230 3,294 3,326 1.0% 9.5%
Broadband 7,552 7,629 7,724 7,823 7,922 7,967 0.6% 4.4%
IPTV 2,393 2,622 2,842 3,076 3,316 3,571 7.7% 36.2%