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Communications

KT Corp.

  • 28,750.00 KRW
  • -300.00
  • -1.03%
  • South Korea
    Oct 15, 2018
  • Ticker
    KRX(030200)
  • Prev. close
    29,050
  • Market cap (KRW)
    7,585.29B
  • Market cap (USD)
    6,687.20M
  • Shares
    261.11M

In the news

Company Background

KT is the largest telecommunications company in South Korea. It began life as Korea Telecommunications Authority, established in 1981. Since privatization in 2002, KT has expanded by absorbing mobile service provider KT Freetel and others. The South Korean National Pension Service is the largest shareholder in KT. KT engaged in the mobile phone service at its subsidiary. But it was forced to sell the subsidiary to SK group when it was privatized. The separated company, currently SK Telecom, is the top mobile carrier in South Korea.

KT Freetel is a subsidiary KT established after selling the mobile phone service subsidiary to SK group. KT Freetel currently offers telecom services under the Olleh brand and is one of the largest player in the South Korean market.

The company received capital subscriptions from major Japanese mobile carrier NTT Docomo in 2005. The companies cooperate in providing roaming services as well as on a technical level.

Hwang Chang-gyu, who was head of Samsung Electronics' semiconductor business, became the telecommunications company's chairman and CEO in 2014.

He implemented various reforms, such as reducing the number of sections and the number of administration staff and reinforcing overseas operations.

He has also decided to participate in plans to construct communications networks in African nations and introduce smart meters in Uzbekistan.

Business Summary

KT Corp. engages in the provision of integrated telecommunication services. It operates through the following business divisions: Mobile, Broadband Internet, Telephone, and Wireless Broadband Internet and Internet Protocol Television (IPTV). The Mobile business division provides smart phone services, special tariff discount products, third-generation, and WiBro network. The Broadband Internet business division offers supplementary services, customized products, and supplies fiber to the home in housing market. The Telephone business division provides phone and internet bundling services, develops new business model. The WiBro business division offers distribution channels, terminals, laptop rental, and package products. The IPTV business division provides free set top box rentals, hybrid products, and satellite high definition channels. The company was founded on December 10, 1981 and is headquartered in Seongnam, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue23,387.26B20,687.35M
Gross Profit5,800.90B5,131.22M
Operating income1,375.28B1,216.51M
Income before tax837,030M740.40M
Net income476,744M421.70M
EBITDA4,739.78B4,192.60M
Diluted EPS1,9451.72
Dividends Per Share1,0000.88
Total Assets29,580.62B27,631.24M
Total liabilities16,504.25B15,416.60M
Total equity11,684.61B10,914.58M
Operating cash flow3,877.74B3,430.08M
Currency in KRWCurrency in USD

Historical Data

KRW | USD
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 23,810.59B 22,311.66B 22,281.22B 22,743.66B 23,387.26B
Gross Profit 5,810.89B 4,778.17B 5,473.97B 5,649.56B 5,800.90B
Operating income 839,343M -551,040M 1,279.47B 1,439.97B 1,375.28B
Income before tax -5,258M -1,347.25B 719,452M 1,127.02B 837,030M
Net income -162,437M -1,118.94B 410,648M 711,089M 476,744M
EBITDA 4,405.51B 2,774.65B 4,618.07B 4,785.24B 4,739.78B
Diluted EPS -666 -4,316 1,245 2,902 1,945
Dividends Per Share 800 0 500 800 1,000
Total Assets 34,846.53B 33,775.50B 29,341.18B 30,587.73B 29,580.62B
Total liabilities 21,981.62B 21,985.21B 17,175.72B 17,792.95B 16,504.25B
Total equity 11,755.23B 10,340.96B 10,845.06B 11,441.93B 11,684.61B
Operating cash flow 4,111.07B 1,916.41B 4,229.96B 4,770.75B 3,877.74B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 21,749.55M 21,195.54M 19,686.47M 19,603.40M 20,687.35M
Gross Profit 5,307.90M 4,539.15M 4,836.50M 4,869.52M 5,131.22M
Operating income 766.68M -523.47M 1,130.47M 1,241.15M 1,216.51M
Income before tax -4.80M -1,279.85M 635.66M 971.41M 740.40M
Net income -148.37M -1,062.96M 362.82M 612.90M 421.70M
EBITDA 4,024.17M 2,635.85M 4,080.27M 4,124.53M 4,192.60M
Diluted EPS -0.60 -4.10 1.10 2.50 1.72
Dividends Per Share 0.73 0 0.44 0.68 0.88
Total Assets 33,018.93M 30,728.74M 25,023.39M 25,325.16M 27,631.24M
Total liabilities 20,828.75M 20,002.01M 14,648.17M 14,731.70M 15,416.60M
Total equity 11,138.70M 9,408.14M 9,249.13M 9,473.36M 10,914.58M
Operating cash flow 3,755.21M 1,820.54M 3,737.36M 4,112.04M 3,430.08M

Valuation Measures

Dec 2017
PER15.54
ROA1.58%
ROE4.12%
Operating margin5.88%
Profit margin2.03%

Key executives

  • Co-Chairman & Chief Executive Officer: Chang-Gyu Hwang
  • President, Director & Head-Mass: Heon-Moon Lim
  • President, Director & Head-Management Support: Hyeon-Mo Ku
  • Senior Managing Director & Head-Finance: Gwang-Seok Shin
  • Managing Director & Head-AI Tech: Jin-Han Kim

Shareholders

  • National Pension Service of Korea (11.0%)
  • NTT DoCoMo, Inc. (8.6%)
  • KT Corp. (6.1%)
  • T. Rowe Price Associates, Inc. (0.9%)
  • Eastspring Investments (Singapore) Ltd. (0.8%)
  • APG Asset Management NV (0.5%)
  • KT Corp. Employee Stock Ownership Association (0.4%)
  • Mirae Asset Global Investments Co., Ltd. (0.4%)
  • Standard Life Investments Ltd. (0.3%)
  • BlackRock Fund Advisors (0.2%)

Contact Details

  • Website:http://www.kt.com
  • Address: 90 Buljeong-ro, Bundang-gu, Seongnam, 13606, South Korea
  • Phone: +82.31.727.0114

Related Companies

  • K-Realty REIT VII Co., Ltd.
  • OIC Korea Co., Ltd.
  • kt innoedu Co., Ltd.
  • KT Investment, Inc.
  • QCP Investment Purpose Co. III, Inc.
  • KT OIC Co., Ltd.
  • Olleh KT Second Securitization Specialty Co., Ltd.
  • Olleh KT First Securitization Specialty Co., Ltd.
  • Sofnics, Inc.
  • KT China Corp.
  • KTsat
  • Olleh KT Sixth Securitization Specialty Co. Ltd.
  • Olleh KT Fourth Securitization Specialty Co. Ltd.
  • Olleh KT Fifth Securitization Specialty Co. Ltd.
  • KT Capital Corp. (South Korea) /Investment Business/
  • Centios Co., Ltd.
  • N Search Marketing Corp.
  • KTSC Investment Management BV
  • KTDS Co., Ltd.
  • Kt NexR Co., Ltd.
  • Bluecord Technology
  • Korea Infomation Data Co. Ltd.
  • KT M&S Co. Ltd.
  • kt telecop Co., Ltd.
  • kt mhows Co., Ltd.
  • KT Tech, Inc.
  • Korea Info Service Corp.
  • Sidus FNH Corp.
  • KT FDS Corp.
  • KT Powertel Co. Ltd.

Competitors

  • SK Telecom Co., Ltd.
  • LG Uplus Corp
  • Sejong Telecom Inc.
  • LINE Corp.
  • Alphabet Inc. Class A
  • Facebook, Inc. Class A
  • Kakao Corp.
  • Microsoft Corporation
  • CJ Corporation
  • CJ Hello Co. Ltd.
  • Taekwang Industrial Co., Ltd.
  • CJ ENM Co., Ltd.
  • KINX Inc.
  • Hyundai HCN Co., Ltd.
  • Daesung Holdings Co., Ltd
  • KT Skylife Co., Ltd
  • KL-Net Corp
  • DB Inc.
  • GS Home Shopping Inc.
  • Hanyang Digitech Co., Ltd
  • Taeyoung Engineering & Construction Co., Ltd.

Copyright © 2018 FactSet Research Systems Inc. All rights reserved.

Last Updated on 15 Oct, 2018

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