TeleGeography Logo

KT swings to net profit in FY15 on cost savings

29 Jan 2016

South Korea’s KT Corp has published its financial results for the year ended 31 December 2015, revealing a swing from the net loss of KRW966.2 billion (USD869.6 million) recorded a year earlier to a net profit of KRW631.3 million.

Operating revenue, meanwhile, totalled KRW22.281 trillion, roughly flat against the KRW22.311 trillion recorded in FY14, with a 2.4% increase in service revenue – to KRW19.514 trillion – failing to offset an almost 15% drop in turnover from merchandise, which fell to KRW2.767 trillion. Operating income in the twelve-month period stood at KRW1.293 trillion, up from an operating loss of KRW406.6 billion a year earlier, while EBITDA for FY15 amounted to KRW4.632 trillion, representing a 58.7% increase on the KRW2.919 trillion reported in FY14. The operating income improvement was driven, KT said, by ‘strengthen[ing] the core business competitiveness and cost saving improvements’. Capital expenditures in 2015 were KRW2.397 trillion (FY14: KRW2.514 trillion), of which the bulk – KRW1.316 trillion – was spent on the company’s access network, with KRW492 billion invested in its backbone network.

In operational terms, at the end of December 2015 KT had a mobile subscriber base of 18.038 million, up from 17.300 million year-on-year, while the number of customers signed up to its 4G services also continued to climb, reaching 12.832 million, compared to 10.780 million at end-December 2014. As such, 4G accesses represented 71.1% of the company’s total wireless subscriber base at the end of last year, compared with 62.3% twelve months previously. Traditional fixed voice accesses continued to decline, however, falling to 13.268 million at end-2015, from 13.849 million a year earlier, while VoIP telephony subscribers totalled 3.413 million, almost unchanged from 3.411 million. Fixed broadband accesses meanwhile numbered 8.328 million, representing a 2.4% year-on-year increase from the 8.129 million it had at end-2014.

South Korea, KT Corp

GlobalComms Database

Want more? Peruse the GlobalComms Database—the most complete source of intel about mobile, fixed broadband, and fixed voice markets.


TeleGeography is the definitive source for telecom news, numbers, and analysis. Explore the full research catalog.