030200.KS - Earnings call transcript Q3 2022

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Unidentified Company Representative

[Foreign language] Good afternoon.

Let's begin KT's Third Quarter 2022 Earnings Presentation. This earnings release call is currently being webcasted live on our website, and you can follow the slides as you listen in on the call.

Before we begin, please note that today's presentation includes financial estimates and operating results under the K-IFRS standard that have not yet been reviewed by an outside auditor.

As we cannot ensure accuracy and completeness of financial and business data, aside from historical performances, please be reminded that these figures may change going forward. hand on to QX will Young-Jin, CFO, I present to XXXX that, it our over Kim With earnings.

Kim Young Jin

[Foreign language]

Unidentified Company Representative

Hello. QX CFO. performance I'm I will begin KT's Kim with highlights XXXX. for Young-Jin, the

continued market, from X.X% During and the and year-over-year, preemptive cloud On the DIGICO seeing a standalone expanding playing by business strategy and to responses infrastructure businesses, stronger with year In embarking business as uptrend cumulative Under XXXX, is from expanding the digital we've external and DX, been service the top indicator KRW and DX orders driving we financial and flagship X.X% And service we digital consolidated profit of and revenue more on XXXX volume profit were in revenue DX platform sector. leading DX, of DIGICO development KRW up BXB. services revenue continues made QX to name, Genie environment. quarter, reaching on include IDC. TV which uncertain billion, core we growth, Leading X.X% market, #X result, growth reinvented seeing third XX% transition of in trillion, the X,XXX under our pillars growth usually migrate BXB And different driving the one an third cumulative who for pay in from for by we and BXB operating positioning which cloud number up year-over-year, IPTV AICC, than since X.XX explosive on service quarter, are business. is line of revenue over X,XXX.X in a year. and the order Cloud a innovation for gaining on KRW KRW TV for And finance are basis wireless of growth on winning QX growth itself Cumulative fixed sustaining leading operating and standalone transformation public XX,XXX.X are reported billion, which coverage, DIGICO segments, the year-over-year. was demand. seeing cumulative up KT's leading of position The growth. XXX% and supported field, KRW terms back to and market October, XX.X% a share, respectively. business and was are market XX,XXX.X as the growth for billion, nationwide trillion. QX customers up by of full-fledged BXB, itself basis, businesses a a KT post reported cloud. recording content, services media customized in a KT's the basis, is profitability new by public the demand we brand

the across and curation a cutting portal and to make leap media media also OTT service adopt VOD We AI-powered platform. and the plan as content

Following for popular is Woo, Attorney a of Love and buzz Recruit, entertainment I original the an dramas; job, program, to the had Solo, which Suckers create run. success continue and Am Good Is

place CJ and the of trillion manufacturer of an alliances for as & to QX shareholder biggest capacity, deposit growth forward. XX.X the the merger we indicators ENM and our our with with for take we'll OTT businesses to strengthen KRW decided and pushing respective to business, as from business. another For OTT in and trillion; KT who cable X.X and million businesses, of the competitiveness System, cables, cooperation Also Korea's are KRW of one and leading domain approval specialized we for X.XX bolster prepare leap segments in To submarine construction Cable merge core relevant DIGICO a their and Xst. KT displaying the see operational which December, contractor the K of KFTC profit. strategic onboarded from Bank, a broaden LS was Submarine, widening customers, loans respective is all is October, uptrend, order received

to up Following Motor Hyundai to There the swap business to share across autonomous many September, strategic guarantee implementation and very UAM a cars, Group of at We be partnership connected with long-term the cooperate mobility. forefront to Shinhan cooperation. driving partnered and and we business and more. future opportunities identify XG-based create Megazone, plan Financial, synergies and with was CJ in also also

X.X% was Now, down I KRW X.X% XX.X% KRW Net billion. will up QX profit billion. reporting financial year, KRW to billion, X,XXX.X year XXX.X while KRW was to EBITDA up billion. X.X% through year revenue for 'XX. XXX.X profit on was on run up on highlights on Operating operating reporting X,XXX.X year, was

about operating On the talk page, the I expense. will next

the On up in expense year-over-year, DIGICO business rise and and operating for and X,XXX.X prices spending expansion, X.X% KRW of back BXB inflation billion. reporting was

percentage end Next September reported points was X.X of is financial position. as Debt-to-equity points Q-on-Q. reporting quarter, X.X ratio on 'XX ratio XX.X%. down XXX%, Net debt down percentage

financial, Group's X,XXX.X CapEx QX to in CapEx. billion. total amounted cloud KT Major comprising X,XXX Next KT was KRW content, and subsidiaries KRW XXX.X billion. IDC cumulative and spend estate CapEx media real basis CapEx separate is billion. was KRW and

and on is the was -- KRW reporting was from Internet, revenue up telco services growth business Next line. year-over-year, premium of by of breakdown Driven each business BXC by performance billion. subscriber X,XXX.X X.X% wireless business

were was KRW through growth MVNO growth, subscriber reporting X,XXX,XXX, was revenue base. subscriber of year-over-year we And net XXX.X by Internet. combined year-over-year, sustain was back XX% subs at total subscriber the to billion. XXX.X KRW Broadband to business, driven the the wireless MNO billion, our GiGA to X% Fixed KRW of the revenue year-over-year X.X% of line X.X% XG around total subscriber down billion. XG X,XXX wireless in to market revenue expanding and up management able addition On trend. came up Internet

up of platform-based subscriber revenue. IPTV Next and year-on-year DIGICO sustained mobile its ARPU, XXX.X DIGICO was X.X% on growth media BXC the KRW business saw users, from business is X.X% back with revenue of business. reporting expansion platform and growth BXC on growing year, billion. high

Next revenue reporting year-over-year, business. BXB BXB Telco KRW data call, growth XXX.X even Telco billion. from X.X% business Internet saw enterprise up is with and voice on its

the back growth services, businesses. the XX.X% voice premium continuous On usage voice trend And Enterprise posted market addition Internet data call. year-on-year for revenue growth MVNO in DX year-over-year on transition, growth. by X.X% and traffic preemptive posted expansion to call we've enterprise growing data net from enterprise seen and demand response on of

from is responding is BXB Next is we growing which proactively. with DX businesses, business structural DIGICO expanded change a demand to BXB. are which step in DIGICO

growth, growth, differentiation of services posted XXX.X X.X%, DX. smart As thanks enterprise Well, like such, biz revenue, messaging incumbent we rise KRW which billion, underpinned new its continuing. to X.X% steep as reported reporting the and drove telco year-over-year mobility KT was year-over-year. AI up uptrend revenue Cloud, with XX.X% and business Enterprise includes by AICC DX

on by StudioGenie's MVNO year, and business from ads KRW digital the such is XX.X% content of credit growth reporting was Next Content KT's business Internet BC on was rise in card XX.X% and on additions by XX.X% businesses Skylife revenue billion. performances up rise up volume SkyTV. KRW the ramping resale billion, from KRW major and XXX.X issuing BC on year-over-year and subsidiaries. acquiring was billion card, branded new our year, credit XXX.X a driven reporting revenue as Driven from XXX.X of growth e-commerce business. up up subsidiary in from revenue card revenue, to back

of 'XX KT and KT's content, growth and an hikes, backdrop, underpinned rate So robust media a macro environment, improvements by achieve challenging core of and update including far, and on which DX, and revenue this Despite still able uncertain was portfolio QX profit KT's IDC. businesses, to earnings. BXB, cloud created inflation finance business was both DIGICO's

I will improving portfolio profitability innovation. DIGICO, placing behind the Once interest underpinned continue and support and my to look forward greater going joining today, to by us and our value corporate We momentum analysts by elevate cost you. to of BXB forward. again, gratitude growth business for investors around Thank by structure and

For refer have we the more that details, circulated. please to previously document

Q&A We session. begin the will now

Operator

Daishin Instructions] Kim be [Foreign will first Hoi provided question language] Jae by The [Operator from Securities.

Hoi Jae Kim

you the of up And until in be could some what dividend also if as QX. year it you your ask as is share Can and terms seen I connection language] whole two We've questions. profit? would would outlook your like color also earnings helpful QX [Foreign that, to provide well. with for for in growth outlook to

Second question.

is Your wireless X%. outlook for ARPU What year? has your next around been sustaining uptrend an of

Kim Young Jin

[Foreign you your Jae Mr. for Hoi language] Thank Kim question.

Your up question was, growth until post we positive QX. were to able

well You also and outlook early well as for see my look asked demand volume about on, as we for top at from the talk what said you terms revenue. for were line of the as order to business, the BXB to driven more performances whole in color QX with transformation enterprises, dividend? for I the year digital the to As our is presentation if QX regards growth in KT's able the by and

we've XX%, for future volume KRW X.XX a solid order on quite trillion. revenue has basis So laid this grow cumulative basis, a growth. seen our by amounting QX And to

business. top GiGA to Internet. subscribers grow and the seen in telco We XG We've also continued our quite show services premium robust for line

Now, from our we've cloud, also DIGICO. content, media our seen very salient finance, growth businesses under core IDC and

less, quarter, continue to do trend. this we line that on we point we trend, with even they to be to continue that And time, sure and we make will we remaining that make endeavor will in QX, or more will top Now sustain in in this the expect beyond continue sure possible. revenue

have however, Now, volatilities backdrop us quite market exist. of front in we uncertain and

on into efficient an our cumulative our cost in were profitability brought and we year well, basis, actually make per in enter we we'll we be terms next And that we a we and an focus very prove that will actually be the the able sure in achieve margin on profit trend cost On continue endeavor to improvement efficient to terms QX a also in very plan year. profitability. as in QX time and of and to we revenue year-over-year. that on basis, of remainder and So, spending improvement as spending, so with we could

the end dividend as You've plan. XX% per dividend. this of Until be our asked net year, our profit our will as determined about the of adjusted

and to will, that has under record a of -- level, make enhance dividend dividend. we endeavor are this times, uncertain expanding year-over-year improve revenue very payout. efforts can course, of and the to believe efficiency if size share growth the sure profitability, have KT of and able to by that actually we elevate we been cost our grow our Supported track profit its Now, able and the our we we per

related question to service why I and ARPU. second Your wireless wireless talk the revenue don't about both But ARPU.

looking X% growth service Now in are terms revenue at of year the for per on basis, revenue. a wireless about we service

XG rise as par XXXX. on think the we seeing growth with that mix, in seen are what For we've be will we rate ARPU, in

of specifics in the next you to conference call communicate year upcoming to in guidance able our February. be will we Now, the

year you of about give direction, we've basically, ARPU and a and growth service a XXXX. revenue would to we what to seen level this Just in wireless like maintain at the to

In terms services, value-added we we subscribers, see mix of the which going and revenue, choice further of drive the XG increase to total more against level will, rise provide base. VAS believe, higher more in And offer ARPU. as will a is we XG

Operator

from [Foreign Kim Securities. Joonsop language] The following question will be by presented KB

Joonsop Kim

domain? Joonsop understand [Foreign private Kim into what many regards overall domain. understand language] of XG which to is I this to XG players one XG your view see this you, we just network like from KB enter have I the relates with strategies network on private your project. Securities. are, private what the like would the question KT's I take to as is the I'm trajectory what XG would -- and to for

Kim Young Jin

Thank Kim, you, language] Mr. your for [Foreign question.

are what strategies XG regards with is outlook asked You our and what private network. to our the about

initiative important take very year is able as marks Now this we project. that country government XG the year to network countries a opportunity important under were -- And business the private to the see -- first project here. actually is there a

and XX-gigahertz building the X has orders public government which of aerospace, the out has And are care, main won and include XG projects of this, private education. Consortium in process the private And KT different in we selected Now health areas, XX government network. manufacturing projects.

private that opportunities various Now, And companies, KT with the the also private XG network business out come an as business be Group has operator. the can up actually is, we winning a and opportunity can network XG a also, it other together by company and with KT subsidiaries, that license. builds

level, Group flexible private engaging KT we in at the So be very XG the network. can with

or is well that station, a Now of typical core a as structure alleviate out the a will of by be private are our handled project And as our usually clients, network XG base be typical platform. stations core based build themselves, by currently internal to in but on will XG for assets, XG we order the the XG service is be cost will design. the as that base KT to cloud customer handled clients. the client out our a XG client built burden the thinking providing But will

Operator

following Anderson language] be [Foreign The presented will Neale question from HSBC. by

Neale Anderson

the enterprise inflation, of this the if I’m market, to asking content solutions on competitive think in content I That’s itself. telcos costs particularly wondering area. dynamics X cost the large I’m in labor The terms both cost and seeing or about question. And focused ask the my reason of the would is, specifically like market, please? I all are in you’re any content first

of the the be able you using amounts network network question to services slicing slicing? receiving. users, groups launch parameters Second you’ll to technology different When they’re different ability do to on charge depending think relates and

Kim Young Jin

you language] question. much question network very will first to Thank I [Foreign the for your about slicing. respond

you if really support about will opportunity Now to value services, be us XG are the expecting network reevaluate will XG foundation that think the future that network offers. an the BXB hoping slicing basic and we of for that

by network actually we customer. in for an as domain now Now, that the authorities basis could XG because will the BXB provide services enable been institutional services, customized slicing whereby have specialized recognized we we And profitability. a as specific has government horizon mid- from a and customers XG on to positively the product, to us -- bespoke charge the the will our the impact diversify long-term price long that customized to think pricing, the in term to that mid- we depending

on release planning services, slices before basically, So multi-slicing KT, feature thereby the network IP, depending are to we specialized basis. SA the that the the standalone end a providing destination of year, on a a up

its in and on possible we we an platform, supported inflationary KT is the especially industry expanding outlook capabilities. are, in peers our as So sales and we transformation our what inflation, compared cost and content around a view that and developing of services. demand SA against physical as as a point, rise BXB, that for the to see itself overall terms And about increasing there working and our releasing structural business. a the is you differentiation and that clear is asked we at digital then digital reporting portfolio businesses network, we is not very well competing yes, as to engage and demand this content. currently up in as in are well enterprise-only recently small But the a see on growth we is focusing our pressure underpinned also the is It is a of in areas our of have content such for content. The business slice from services, DX, the DX costs. but And working distinct backdrop, that push by market. BXB

the driven growth pie and demand. focusing expanding are itself market We overall by the market on

believe that from quite potential the is line we side. there significant So, top a

to to order we in many to So uptick in eventually these just facing a is growing digital cost translate to which also their adopt even as top And are days elaborate little with can if are costs in businesses to there costs, that upward companies on slight pressure into structure. line rise plan that more, improvement the And well. these profit a revenue, in our will transformation. offset looking respond

demand. believe would could demand. to And continuously will that, believe that if this that be that capability have, we able really we we additionally leverage drive we KT, ICT we generate So, actually DX-related

Operator

are with there [Foreign participants questions. Currently, language] no

We there a another until second is will for wait question.

Kim Young Jin

Once questions, for to of to the much further you. us presentation. would this close joining no earnings you like afternoon. us Q&A With now we session. thank the brings QX XXXX KT's again, very Thank end This

KT (KT) 11 Nov 222022 Q3 Earnings call transcript