KT Corp (NYSE:KT) Q4 2019 Earnings Conference Call - Final Transcript

Feb 06, 2020 • 01:00 am ET

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KT Corp (NYSE:KT) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

[Foreign Speech] Good morning and good evening. First of all, thank you all for joining this conference call. And now we will begin the conference of the 2019 Fourth Quarter Earnings Results by KT. We would like to have welcoming remarks from Mr. Seung-Hoon Chi, KT IRO; and then Mr. Kyung-Keun Yoon, CFO will present earnings results and entertain your questions. This conference will start with a presentation followed by a Q&A session. [Operator Instructions]

Now we would like to turn the conference over to Mr. Seung-Hoon Chi, KT IRO.

Executive
Seung-Hoon Chi

[Foreign Speech]

Good afternoon. I'm Seung-Hoon Chi, KT's IRO. Let us now begin KT's 2019 annual earnings presentation. This earnings release call is being webcasted via our website and you can refer to the presentation slides as you listen in on the call.

[Foreign Speech]

Please note that KT's earnings are based on the consolidated financial statement under the IFRS standards. We will begin with CFO, Kyung-Keun Yoon's opening remarks, followed by highlights on 2019 Annual Results.

Executive
Kyung-Keun Yoon

[Foreign Speech]

Good afternoon. I'm KT's CFO, Kyung-Keun Yoon. I will first present key earnings performance by business division and close with the business direction for 2020.

[Foreign Speech]

Wireless revenue achieved quantitative and qualitative growth with the launch of the 5G commercial service. 5G subscribers that the initial target of 10% of the total mobile telecom subscribers with 1.42 million subscribers. Wireless service revenue and ARPU, which had been on a downward cycle, due to the impact of greater tariff discount have also been growing every quarter with the increase in the 5G subscriber base. Wireless ARPU in Q4 has turned around on an annual basis up 2.1% on year.

[Foreign Speech]

Currently 5G coverage has been expanded to 85 cities, provinces and to home level nationwide. In 2020, we aim to focus on improving the quality directly experienced by our subscribers by expanding the in-building coverage, centered around public places and large buildings.

[Foreign Speech]

Moreover, we plan to offer new telecommunications experience, leveraging the 5G high capacity and ultra-low latency by launching the 5G HD service within this year.

[Foreign Speech]

With the launch of high quality content including the 5G game streaming and immersive media, Super VR and 5G virtual and immersive music, as well as strengthening the new customer communication services including Real 360 and other, we aim to drive experiential service differentiation.

[Foreign Speech]

And in the area of 5G B2B by leveraging the enhanced security and network performance, we plan to expand the B2B experience to other industrial sectors and making a tangible inroads in that business, including our 5G collaboration robot and smart factory.

[Foreign Speech]

In the Internet business, GiGA Internet steady growth continued. GiGA Internet, which had become the standard for ultra high-speed Internet just five years since its launch, recorded 5.47 million subscribers, with a net addition of 580,000 subs in 2019 and grew to represent 61% of the total 8.96 million Internet subscribers.

[Foreign Speech]

With the greater lineup of high quality