KT Corporation
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KT Corporation Financial Snapshot
Operating Performance
Fast Facts
KT Headquarters, Seongnam-Si, Kyeonggi- The company reported revenue of US$19,886 million
Headquarters Address
Do, 463-711,Other during the fiscal year 2011 (2011). The company's
revenue declined at a compounded rate of 0.25%
Telephone + 82317270114
during 2007–2011, with an annual growth of 13.48%
over 2010. In 2011, the company recorded an
Fax + 82317270949 operating margin of 8.98%, as against 9.88% in 2010.
Website www.kt.comeng
Revenue and Margins
Ticker Symbol, Stock Exchange 030200, Korea Stock Exchange
Number of Employees 32,061
Fiscal Year End December
Revenue (in US$ million) 19,886
SWOT Analysis
Strengths Weaknesses Return on Equity
Interest in Fiber-optic Submarine Cable Decline Fixed-Line Telephone Services The company recorded a return on equity (ROE) of
Networks Revenues 12.36% for 2011, as compared to its peers, SK
Telecom Co., Ltd. (Ticker: 017670), KDDI Corporation
Market Leadership Position Substantial debts (Ticker: 9433) and LG Telecom Ltd. (Ticker: 032640),
which recorded ROEs of 13.83%, 12.12% and 2.19%
Strong Network Base respectively. The company reported an operating
margin of 8.98% in 2011.
Opportunities Threats
Return on Equity
Increasing Demand for 3G/4G
Currency Exchange Risk
technologies
Innovations Industry Consolidation
Launch of WiFi on trains Termination of 2G PCS
Upgrade of 4G WiBro network
Liquidity Position
The company reported a current ratio of 1.12 in 2011,
as compared to its peers, SK Telecom Co., Ltd., KDDI
Corporation and LG Telecom Ltd., which recorded
current ratios of 0.92, 1.53 and 0.66 respectively. As
of December 2011, the company recorded cash and
short-term investments of worth US$1,536 million,
against US$42 million current debt. The company
reported a debt to equity ratio of 0.95 in 2011 as
compared to its peers, SK Telecom Co., Ltd., KDDI
Corporation and LG Telecom Ltd., which recorded
debt to equity ratios of 0.51, 0.46 and 1.02
respectively.
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KT Corporation - SWOT Profile Page 1
KT Corporation
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ........................................................................................................................................... 5
1.2 Business Description......................................................................................................................................... 5
1.3 Major Products and Services............................................................................................................................. 7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ......................................... 8
2.2 Key Financial Performance Indicators ............................................................................................................. 11
2.2.1 Revenue and Operating Profit ................................................................................................................. 11
2.2.2 Asset and Liabilities................................................................................................................................. 12
2.2.3 Solvency ................................................................................................................................................. 13
2.2.4 Valuation ................................................................................................................................................. 14
2.3 Competitive Benchmarking.............................................................................................................................. 15
2.3.1 Market Capitalization ............................................................................................................................... 15
2.3.2 Efficiency................................................................................................................................................. 16
2.3.3 Valuation ................................................................................................................................................. 17
2.3.4 Turnover – Inventory and Asset ............................................................................................................... 18
2.3.5 Liquidity................................................................................................................................................... 19
3 Recent Developments ........................................................................................................................... 20
4 SWOT Analysis ...................................................................................................................................... 22
4.1 SWOT Analysis - Overview ............................................................................................................................. 22
4.2 Strengths ........................................................................................................................................................ 22
4.3 Weaknesses ................................................................................................................................................... 22
4.4 Opportunities .................................................................................................................................................. 23
4.5 Threats ........................................................................................................................................................... 23
5 Company Statement .............................................................................................................................. 25
6 History .................................................................................................................................................... 27
7 Key Employees ...................................................................................................................................... 28
8 Key Employee Biographies ................................................................................................................... 29
9 Locations and Subsidiaries .................................................................................................................. 30
9.1 Head Office..................................................................................................................................................... 30
9.2 Other Locations and Subsidiaries .................................................................................................................... 30
10 Appendix ................................................................................................................................................ 32
10.1 Methodology ................................................................................................................................................... 32
10.2 Ratio Definitions .............................................................................................................................................. 32
10.3 Disclaimer ....................................................................................................................................................... 36
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KT Corporation - SWOT Profile Page 2
KT Corporation
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List of Tables
Table 1: Major Products and Services ............................................................................................................................ 7
Table 2: Key Ratios - Annual ........................................................................................................................................... 8
Table 3: Key Ratios - Interim ......................................................................................................................................... 10
Table 4: Key Capital Market Indicators .......................................................................................................................... 10
Table 5: History ............................................................................................................................................................. 27
Table 6: Key Employees ................................................................................................................................................ 28
Table 7: Key Employee Biographies .............................................................................................................................. 29
Table 8: Subsidiaries ......................................................................