6-K 1 d203048d6k.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 November 2021

Commission File Number 1-14926

 

 

KT Corporation

(Translation of registrant’s name into English)

 

 

90, Buljeong-ro,

Bundang-gu, Seongnam-si,

Gyeonggi-do,

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  ☒                    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  ☒

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: November 9, 2021

KT Corporation
By:  

/s/ Seunghoon Chi

Name: Seunghoon Chi

Title: Vice President

By:  

/s/ Ginah Yun

Name: Ginah Yun
Title: Director


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KT 3Q21 Earnings Release


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Disclaimer This presentation has been prepared by KT Corp.(the “Company”) in accordance with K-IFRS. This 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 presentation 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 has applied new accounting standard of K-IFRS 1115 as of Jan 1st, 2018 and K-IFRS 1116 ‘Leases’ as of Jan 1st, 2019. There are no obligation to apply the new standard to previous financial statements. 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 could 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. If you have any related questions to this material, please contact IR department. Tel : +82-2-3495-3557, 3254, 3564, 5344 Fax : +82-2-3495-5917 2


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1 3Q21 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix 3


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1 3Q21 Highlights Financial Revenue 6,217.4 bn. (YoY + 3.6%) Revenue 4,664.7 bn. (YoY + 3.2%) Consolidated KT Separate Operating Operating 382.4 bn. (YoY +30.0%) 259.1 bn. (YoY +24.3%) Profit Profit Operations Sustaining Telco and Platform biz growth Accelerating progress in Group restructuring Epsilon acquisition → Enhancing Global data DIGICO Strong growth momentum in B2B DX Hyundai HCN acquisition → Strengthening 1st Recorded the best quarterly B2B order intake of KRW 1 tn. position in Korean pay tv market AI/DX(IDC/Cloud) Rev. up YoY +29.7% Millie’s Library acquisition → Broadening AI Launched new services such as Audio platform business areas AI Secretary, Service robots and etc. Business restructuring → Contents production TELCO Solid growth from Telco business Capital increase of KRW 175bn 5G subs increased to 5.61 mn Seezn establishment & Hyundai media Acquisition Mobile service rev. up YoY +3.8% 2 consecutive quarters profit improvement Broadband rev. up YoY +2.4% 4


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2 DIGICO transformation • 4 Business Categories by customer and BM—Telco B2C, Telco B2B, DIGICO B2C, DIGICO B2B • B2B/DIGICO revenue portion target to 50% by 2025, which is currently 39% in 2021 (KT Separate, each 3Q accumulated revenue) (BM type) TELCO DIGICO Mobile·Broadband·Telephony and etc. IPTV·Contents and etc. B +1.5% +15.9% 2 6.95 7.05 1.34 1.56 C tr won tr won tr won tr won 2019 2021 B2B 2019 2021 (Customer DIGICO ) 39% Line Lease·Corp Messaging and etc. AI·IDC·Cloud and etc. B +0.6% +8.4% 2 1.47 1.48 1.41 1.52 B tr won tr won tr won tr won 2019 2021 2019 2021 5


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1 3Q21 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix 6


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Income Statement K-IFRS / Consolidated Total revenue increased +3.6% YoY with balanced growth in both Telco and Digital platform business Operating income increased +30.0% YoY with revenue growth and efficient cost spending (flnit: KRW bn) 3Q20 2Q21 3Q21 QoQ YoY Operating Revenue 6,001.2 6,027.6 6,217.4 3.1% 3.6% Service Revenue 5,240.0 5,336.8 5,402.4 1.2% 3.1% Handset Revenue 761.2 690.9 815.0 18.0% 7.1% Operating Expense 5,707.2 5,551.8 5,835.0 5.1% 2.2% Operating Income 294.0 475.8 382.4 -19.6% 30.0% Margin 4.9% 7.9% 6.2% -1.7%p 1.3%p Margin* 5.6% 8.9% 7.1% -1.8%p 1.5%p Non-op. Income/Loss 20.1 46.8 97.9 109.0% 386.2% Income before taxes 314.2 522.7 480.3 -8.1% 52.9% Net Income 229.9 370.8 337.7 -8.9% 46.9% Margin 3.8% 6.2% 5.4% -0.8%p 1.6%p EBITDA 1,199.3 1,373.2 1,277.5 -7.0% 6.5% Margin 20.0% 22.8% 20.5% -2.3%p 0.5%p ? OP Margin* = Operating Income/Service Revenue 7


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Operating Expenses K-IFRS / Consolidated (flnit: KRW bn) 3Q20 2Q21 3Q21 QoQ YoY Operating Expenses 5,707.2 5,551.8 5,835.0 5.1% 2.2% Labor Cost 1,082.3 1,025.5 1,090.0 6.3% 0.7% General Expense 2,385.3 2,380.9 2,447.7 2.8% 2.6%—Depreciation 905.3 897.3 895.1 -0.2% -1.1% Cost of Service Provided 823.9 795.0 835.8 5.1% 1.5% Selling Expense 614.3 608.4 582.0 -4.3% -5.2% Cost of Handset sold 801.4 741.9 879.4 18.5% 9.7% Selling Expense (KT Separate) (flnit: KRW bn) 3Q20 2Q21 3Q21 QoQ YoY Selling Expense 641.9 641.8 -3.1% -3.1% 8


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Financial Position K-IFRS / Consolidated (flnit: KRW bn) 3Q20 2Q21 3Q21 QoQ YoY Assets 36,449.2 34,139.0 35,831.2 5.0% -1.7% Cash & Cash equivalents 2,990.9 3,097.0 3,088.9 -0.3% 3.3% Liabilities 20,794.0 18,475.2 19,733.7 6.8% -5.1% Borrowings 7,850.9 7,755.7 8,396.1 8.3% 6.9% Equity 15,655.1 15,663.8 16,097.5 2.8% 2.8% Capital Stock 1,564.5 1,564.5 1,564.5 0.0% 0.0% Net Debt 4,860.0 4,658.7 5,307.2 13.9% 9.2% Debt / Equity 132.8% 117.9% 122.6% 4.7%p -10.2%p Net Debt / Equity 31.0% 29.7% 33.0% 3.3%p 2.0%p Debt/Equity Net Debt/Equity 121.0% 127.5% 120.1% 124.9% 132.8% 118.7% 122.6% 28.1% 32.9% 37.6% 32.8% 31.0% 30.1% 32.4% 29.7% 33.0% 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 9


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K-IFRS / Separate CAPEX CAPEX executed 1,464.8 bn won till 3Q21 - Access Network 730.5 bn, Backbone Network 228.3 bn, B2B communications 217.9 bn, others 288.1 bn 3,313 3,257 (flnit: KRW bn) Access Network Backbone Network B2B Others 2,872 1,870 2,514 2,397 2,359 2,250 1,977 2,199 1,593 1,362 1,316 1,133 1,196 1,465 466 241 736 2013 428 394 330 2014 492 362 227 2015 452 517 258 2016 497 298 259 2017 189 2018 408 367 284 2019 532 419 329 2020 731 228 218 288 2021 3Q 10


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1 3Q21 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix 11


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KT—Wireless Wireless service revenue up +3.8% YoY with solid growth of 5G subscribers Total number of 5G subscribers recorded 5.61 million(39% of Handset subscribers) K-IFRS / Separate (flnit: KRW bn) 3Q20 2Q21 3Q21 QoQ YoY Wireless 1,742.1 1,788.5 1,794.7 0.3% 3.0% Service 1,636.2 1,688.5 1,697.8 0.6% 3.8% Interconnection 105.9 100.0 96.9 -3.1% -8.5% Subscribers (flnit: Thousands) 21,771 21,922 21,976 22,133 22,333 22,305 22,427 22,621 22,735 1,055 1,419 1,778 2,237 5G 14,124 (5G incl.) 3,856 3,792 14,165 (5G incl.) 3,985 3,772 14,231 (5G incl.) 4,100 3,645 14,291 (5G incl.) 4,325 3,517 14,324 (5G incl.) 4,517 3,492 14,335 (5G incl.) 3,054 4,917 14,364 (5G incl.) 3,069 4,994 14,373 (5G incl.) 3,124 5,124 14,331 (5G incl.) 3,204 5,201 Handset 2nd Device/IoT MVNO 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 12


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KT – Fixed Line/IPTV K-IFRS / Separate Telephony revenue decline mitigated(-1.2% YoY) and Broadband revenue increased +2.4% YoY underpinned by solid growth in subscriber base IPTV revenue up +3.1% YoY with consistent subs growth and platform revenue growth (flnit: KRW bn) 3Q20 2Q21 3Q21 QoQ YoY Telephony 373.0 370.5 368.4 -0.6% -1.2% Broadband 498.7 507.4 510.7 0.7% 2.4% IPTV 459.3 466.6 473.4 1.4% 3.1% Broadband Subscriber (flnit: Thousands) 8,962 8,962 9,043 9,130 9,171 9,276 9,359 9,432 IPTV Subscriber (flnit: Thousands) 8,351 8,422 8,559 8,687 8,763 8,893 9,021 9,122 61.0% 62.1% 62.9% 63.4% 64.1% 64.5% 64.9% 65.1% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Subscribers % of GiGA 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 ? Number of IPTV subscribers above deviates from MSIT’s released figure below following IPTV law - Number of KT pay TV subscriber is 7,872,660 in 2H 2020 (6 month average) 13


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KT – B2B and others B2B total revenue up +6.0% YoY with data traffic increase and Digital demands growth AI/DX revenue up +29.7% with continued growth in AICC, IDC, Cloud and others K-IFRS / Separate (flnit: KRW bn) 3Q20 2Q21 3Q21 QoQ YoY B2B 686.4 691.3 727.7 5.3% 6.0% Corporate Fixed Line 266.9 278.6 274.1 -1.6% 2.7% Corporate IT/Solution 295.2 275.5 292.3 6.1% -1.0% AI/DX 124.3 137.2 161.2 17.5% 29.7% Real estate 45.4 43.6 44.3 1.6% -2.5% Handset revenue 715.5 610.9 745.6 22.1% 4.2% ? Most of Bizmeka revenue, which was in AI/DX, transferred to Corp. IT/Solution due to the decision of business termination and reallocation (Retrospectively reflected in revenue of FY2020) B2B revenue breakdown AI/DX 20% Corp. IT/Solution Corp. Lines AI/DX IDC, Cloud, AI Platform, Block chain, Smart mobility, etc. Corp. IT/Solution SI, Global ICT, Energy, Video security, etc. Corp. Lines Line lease, Kornet 14


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Major subsidiaries K-IFRS / consolidated(each subsidiary) BC card revenue up +2.9% YoY from increased credit card transaction volume Contents subsidiaries revenue up +24.6% YoY with growth of digital ads, T-Commerce and others Subsidiaries Revenue (flnit: KRW bn) ? Contents subsidiaries : KT Seezn(3Q21) added OP contribution by subsidiaries in total 83.5 89.2 85.5 78.2 (flnit: KRW bn) 124.7 123.3 47.7 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 15


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1 3Q21 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix 16


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K-IFRS Income Statement (flnit: KRW bn) Consolidated 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 KT Separate 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 Operating revenue 6,001.2 6,207.3 6,029.4 6,027.6 6,217.4 Operating revenue 4,520.5 4,590.0 4,574.5 4,478.8 4,664.7 Service revenue 5,240.0 5,302.5 5,230.4 5,336.8 5,402.4 Service revenue 3,805.0 3,785.5 3,822.9 3,867.9 3,919.1 Handset revenue 761.2 904.7 799.1 690.9 815.0 Handset revenue 715.5 804.5 751.6 610.9 745.6 Operating expense 5,707.2 6,045.5 5,585.2 5,551.8 5,835.0 Operating expense 4,312.0 4,476.1 4,208.5 4,127.6 4,405.6 Service expense 4,905.7 5,037.5 4,716.8 4,809.8 4,955.6 Service expense 3,569.5 3,610.3 3,443.8 3,531.7 3,662.8 Labor cost 1,082.3 1,053.8 1,024.2 1,025.5 1,090.0 Labor cost 629.2 548.1 569.0 567.1 629.3 General expense 2,385.3 2,440.5 2,320.7 2,380.9 2,447.7 General expense 1,690.4 1,761.4 1,644.8 1,714.9 1,763.9 Cost of svc provided 823.9 860.6 757.4 795.0 835.8 Cost of svc provided 592.6 592.9 584.4 594.9 634.4 Selling expense 614.3 682.6 614.4 608.4 582.0 Selling expense 657.3 707.9 645.6 654.9 635.2 Cost of device sold 801.4 1,008.1 868.5 741.9 879.4 Cost of device sold 742.5 865.7 764.7 595.9 742.8 Operating income 294.0 161.7 444.2 475.8 382.4 Operating income 208.5 114.0 366.0 351.2 259.1 N-OP income (loss) 20.1 -178.0 24.0 46.8 97.9 N-OP income (loss) 12.6 -182.5 86.3 50.2 50.2 N-OP income 157.8 302.7 245.0 145.6 307.6 N-OP income 95.6 278.9 289.3 148.6 279.9 N-OP expense 142.6 502.2 226.7 126.8 273.8 N-OP expense 82.9 461.4 203.0 98.4 229.7 Equity Method (G/L) 4.9 21.5 5.7 28.1 64.1 Income bf tax 314.2 -16.3 468.2 522.7 480.3 Income bf tax 221.1—68.5 452.2 401.4 309.3 Income tax 84.2 -53.4 141.7 151.9 142.6 Income tax 58.1—83.0 117.8 104.6 80.6 Net income 229.9 37.2 326.5 370.8 337.7 Net income 163.0 14.5 334.4 296.8 228.7 NI contribution to KT 203.3 67.7 302.6 338.8 310.9 EBITDA 1,199.3 1,067.1 1,345.3 1,373.2 1,277.5 EBITDA EBITDA Margin 1,012.3 919.6 1,173.6 1,159.4 1,061.1 EBITDA Margin 20.0% 17.2% 22.3% 22.8% 20.5% 22.4% 20.0% 25.7% 25.9% 22.7% 17


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K-IFRS Balance Sheet (flnit: KRW bn) Consolidated 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 KT Separate 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 Assets 36,449.2 33,662.5 33,547.6 34,139.0 35,831.2 Assets 28,774.1 28,027.9 27,693.7 28,203.4 28,607.5 Current assets 14,211.2 11,154.2 11,567.1 11,695.3 11,897.4 Current assets 8,098.4 7,155.7 7,287.3 7,254.5 7,533.0 Cash & cash equi. 2,990.9 2,634.6 2,753.1 3,097.0 3,088.9 Cash & cash equi. 1,911.6 1,541.2 1,564.4 1,926.7 1,829.5 Trade & other rec 4,272.5 3,840.2 4,029.5 3,785.5 4,156.5 Trade & other rec 3,473.7 3,127.0 3,353.6 3,069.8 3,430.9 Inventories 851.9 534.6 591.9 474.1 406.6 Inventories 649.4 353.3 349.8 262.2 186.6 Other current asset 6,095.9 4,144.7 4,192.6 4,338.8 4,245.3 Other current asset 2,063.7 2,134.2 2,019.6 1,995.9 2,086.1—Prepaid_Contract cost 1,379.9 1,345.7 1,310.8 1,279.0 1,291.8—Prepaid_Contract cost 1,432.8 1,406.9 1,398.9 1,378.5 1,372.7—Contract assets 382.9 392.3 415.8 441.5 482.8—Contract assets 338.2 343.4 351.1 352.7 360.6 Non-current assets 22,237.9 22,508.4 21,980.5 22,443.6 23,933.8 Non-current assets 20,675.7 20,872.2 20,406.4 20,948.9 21,074.5 Trade & other rec 1,060.6 1,128.5 945.3 958.5 814.3 Trade & other rec 1,001.3 1,080.3 898.9 906.8 760.2 Tangible assets 13,773.5 14,206.1 13,877.4 13,627.3 13,720.8 Tangible assets 11,502.2 11,999.7 11,725.9 11,511.7 11,463.6 Other current assets 7,403.8 7,173.7 7,157.8 7,857.8 9,398.7 Other current assets 8,172.2 7,792.2 7,781.6 8,530.4 8,850.7—Prepaid_Contract cost 466.4 458.2 448.2 447.7 472.4—Prepaid_Contract cost 454.7 454.8 445.1 439.3 441.5—Contract assets 176.5 194.2 209.4 219.5 230.8—Contract assets 106.5 118.8 125.6 128.5 134.7 Liabilities 20,794.0 18,111.1 18,209.7 18,475.2 19,733.7 Liabilities 15,467.8 14,824.4 14,681.3 14,877.6 15,016.2 Current liabilities 11,535.4 9,192.5 9,271.5 8,325.7 9,381.3 Current liabilities 7,037.2 6,608.0 6,563.9 5,767.9 6,419.4 Trade & other payables 8,255.6 6,210.1 5,969.6 5,741.7 6,155.8 Trade & other payables 4,670.0 4,568.4 4,409.4 3,987.6 4,240.0 Short-term borrowings 1,546.0 1,418.1 1,449.0 945.9 1,588.2 Short-term borrowings 1,381.4 1,228.8 1,204.5 823.8 1,196.0 Others 1,733.8 1,564.3 1,853.0 1,638.1 1,637.3 Others 985.9 810.8 950.0 956.4 983.4—Contract liabilities 316.3 327.1 321.2 288.5 270.4—Contract liabilities 319.7 316.8 325.0 318.7 316.0 Non-current liabilities 9,258.6 8,918.6 8,938.2 10,149.5 10,352.4 Non-current liabilities 8,430.5 8,216.4 8,117.4 9,109.7 8,596.8 Trade & other payables 810.0 807.5 690.4 1,178.9 1,082.7 Trade & other payables 1,530.5 1,512.9 1,206.2 1,874.9 1,731.6 Long-term borrowings 6,304.9 5,898.2 6,275.7 6,809.8 6,807.9 Long-term borrowings 6,080.7 5,717.0 5,973.1 6,265.5 5,947.2 Others 2,143.8 2,212.9 1,972.1 2,160.8 2,461.8 Others 819.3 986.5 938.1 969.3 918.1—Contract liabilities 52.2 57.1 50.0 43.9 43.7—Contract liabilities 50.9 54.6 54.1 51.7 50.0 Equity 15,655.1 15,551.4 15,337.9 15,663.8 16,097.5 Equity 13,306.3 13,203.5 13,012.4 13,325.8 13,591.3 Retained earnings 12,138.4 12,155.4 12,113.9 12,506.1 12,821.7 Retained earnings 11,247.5 11,233.7 11,221.4 11,517.5 11,746.6 8


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Subscribers K-IFRS / Separate Wireless 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 QoQ YoY Subscribers (flnit: Thousands)1) Total 22,333 22,305 22,427 22,621 22,735 0.5% 1.8% Net additions 200 -28 122 194 114 -41.2% -42.9% Gross additions 1,033 999 1,165 1,041 986 -5.3% -4.5% Deactivation2) 833 1,026 1,043 847 871 2.8% 4.5% Churn rate 1.2% 1.5% 1.6% 1.3% 1.3% 0.0%p 0.1%p LTE 16,774 16,174 15,739 15,504 15,161 -2.2% -9.6% 5G 2,813 3,619 4,404 5,014 5,617 12.0% 99.7% LTE+5G Penetration rate 87.7% 88.7% 89.8% 90.7% 91.4% 0.7%p 3.7%p ARPU (KRW)3) 31,620 31,946 32,003 32,342 32,476 0.4% 2.7% Note 1) Subscribers: MSIT’s new guidelines for subscriber disclosure (Retroactively applied from 1Q14, MVNO included) Note 2) Deactivation: Mandatory deactivation included Note 3) ARPfl = Wireless revenue* / Wireless subscribers** * Wireless revenue(3G, LTE, 5G, IoT included): Revenue of Voice and Data usage (Interconnection/Subscription fee excluded), VAS, Contract/ Bundled Discounts, and etc. included ** Wireless subscribers: Based on MSIT’s guidelines for average billed subscribers in quarter Fixed Line/IPTV 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 QoQ YoY Subscribers (flnit: Thousands) Telephony 13,732 13,582 13,460 13,329 13,218 -0.8% -3.7% PSTN 10,594 10,449 10,311 10,169 10,037 -1.3% -5.3% VoIP 3,138 3,133 3,149 3,159 3,180 0.7% 1.4% Broadband 9,130 9,171 9,276 9,359 9,432 0.8% 3.3% IPTV (OTV+OTS) 8,687 8,763 8,893 9,021 9,122 1.1% 5.0% ? Number of IPTV subscribers above deviates from MSIT’s released figure below following IPTV law - Number of KT pay TV subscriber is 7,872,660 in 2H 2020 (6 month average) 19


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