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 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      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

LOGO

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 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 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: ir@kt.com

1. 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

LOGO

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 %
LOGOBoth the ‘activation’ and ‘deactivation’ numbers above include ‘internal migration’(2Gg3G).  
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  

LOGO     Broadband

 

  - 2008.5.19 Lite, Special Lite, PremiumgLite(50M), Special, NtopiagSpecial(100M)

 

  - Reorganized service lineup into 2 price packages- Lite and Special in May 19, 2008. Previous Lite, PremiumgLite(50M), Special, NtopiagSpecial(100M)

LOGO     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