KT - Q2 2022
August 11, 2022
Transcript
Operator (participant)
안녕하십니까? 오늘 참석해 주신 여러분께 감사의 말씀을 드리며 지금부터 KT 2022년 2분기 실적발표 컨퍼런스 콜을 시작하겠습니다. 순서는 KT 지승훈 IRO의 안내 말씀이 있은 후 김영진 CFO의 실적발표 및 질의응답 시간을 가질 예정입니다. 질문을 하실 분들은 전화기 버튼의 별표와 1번을 눌러주시기 바랍니다. KT 발표 후 별표와 1번을 누르신 순서대로 발언 기회를 드리겠습니다. 그럼 지금부터 KT 지승훈 IRO의 안내 말씀이 있겠습니다.
Speaker 6
Good morning and good evening. Thank you all for joining this conference call. Now we will begin the conference call for the 2022 second quarter earnings results by KT. We would like to have welcoming remarks from Mr. Seung-Hoon Chi, KT IRO, and then Mr. Young-Jin Kim, CFO, will present earnings results and entertain your questions. This conference will start with a presentation followed by a Q&A session. If you have a question, please press star one. That is star one on your phone during the Q&A. Now, we would like to turn the conference over to Mr. Seung-Hoon Chi, KT IRO.
Seung-Hoon Chi (Investor Relations Officer)
안녕하십니까? KT IRO 지승훈입니다. KT 2022년 2분기 실적발표를 시작하겠습니다. 본 컨퍼런스 콜은 당사 홈페이지에서 웹캐스팅으로 제공되고 있으며, 실적발표 슬라이드와 함께 설명을 청취하실 수 있습니다.
Speaker 6
Good afternoon. I am Seung-Hoon Chi, KT's IRO. Let us begin KT's second quarter 2022 earnings presentation. This earnings release call is being webcast live on our website and you can follow the slides as you listen in on the call.
Seung-Hoon Chi (Investor Relations Officer)
금일 발표하는 내용은 외부 감사인 검토 전 K-IFRS 기준으로 작성된 추정 재무실적 및 영업 성과를 포함하고 있습니다. 확정된 과거 자료 이외의 모든 재무 및 경영 성과 자료에 대해서는 정확성과 완벽성을 보장할 수 없으며, 향후 변경될 수 있음을 양지해 주시기 바랍니다.
Speaker 6
Before we begin, please note that today's presentation includes financial estimates and operating results under the K-IFRS standard that have not yet been reviewed by an outside auditor. As we cannot ensure accuracy and completeness of financial and business data aside from historical performances, please be reminded that these figures may be subject to changes.
Seung-Hoon Chi (Investor Relations Officer)
그럼 당사 김영진 CFO의 인사 말씀과 함께 2022년 분기 실적에 대한 설명이 있겠습니다.
Speaker 6
With that, I will hand it over to our CFO, Young-Jin Kim, to present on Q2 2022 earnings.
Young-Jin Kim (CFO)
안녕하십니까? KT 재무실장 김영진입니다. 먼저 KT 2022년 2분기 주요 성과를 설명드리겠습니다.
Speaker 6
Good afternoon. I'm KT's CFO, Young-Jin Kim. Let me begin with KT's key highlights for Q2 2022.
Young-Jin Kim (CFO)
2022년 2분기는 디지털 플랫폼 기업으로의 성공적인 전환과 금융, 미디어 콘텐츠, 부동산 중심 그룹 포트폴리오 개편 성과가 본격화되며 성장 사업 중심의 그룹 포트폴리오가 안착되었습니다.
Speaker 6
In 2022, the second quarter, we firmly established the group's portfolio around growth businesses with a successful transition to a digital platform company and the ramping up of our business portfolio around finance, media and content, and real estate businesses.
Young-Jin Kim (CFO)
2022년은 디지코 선언 3년 차로 상반기 연결 영업수익은 12조 5,899억 원으로 역대 최고 실적을 달성하며 업의 운동장을 확대하고 있습니다.
Speaker 6
2022 marks the third year since the pledge as a DIGICO, achieving record high performance of first half consolidated operating revenue of KRW 12,589.9 billion as we successfully broadened the playing field.
Young-Jin Kim (CFO)
B2B 사업은 국내 최대 유무선 인프라와 DX 핵심 기술을 바탕으로 기업들의 DX 전환 수요에 대응하며 시장을 선도하고 있습니다. 고객 세그멘트별로 차별화된 서비스를 제공하거나 기존 전통적인 사업에 AI, 빅데이터, 클라우드 역량을 접목하는 DX화를 통하여 각 서비스를 성장시켜 나갈 계획입니다.
Speaker 6
In the B2B business, we are leading the market catering to corporate demand for DX or digital transformation, leveraging our core DX technologies and the biggest fixed and wireless infrastructure that we have in Korea. By offering differentiated services for each customer segment and by bringing AI, big data, and Cloud capabilities to our existing businesses to drive digital transformation, we plan to further power growth of these services.
Young-Jin Kim (CFO)
국내 최고 수준의 고객센터에 AI 기술을 접목한 AICC는 전통 사업을 DX하는 대표적인 사례로서 상반기 매출이 전년 연간을 초과하는 등 대한민국 콜센터의 디지털 전환을 이끌고 있습니다.
Speaker 6
AICC is where we see an adoption of AI technology by Korea's top-notch customer service centers and a good example of our DX digital transformation coming together in traditional businesses. First half revenue, therefore, has surpassed last year's annual figure, spearheading digital conversion for call centers in Korea.
Young-Jin Kim (CFO)
또한 B2B 사업은 공공, 국방, 금융 섹터에 대한 강점을 바탕으로 산업별 고객 맞춤형 서비스 제공을 통해 상반기 수주 실적이 전년 대비 33% 성장하였고, 7월 말 누적 기준으로는 45% 성장이 확대되며 B2B 사업의 중장기 성장 기반을 강화하였습니다.
Speaker 6
For the B2B business, underpinned by our strength in public, defense, and financial sector, we delivered customized services for customers across different sectors, growing the number of orders booked up by 33% year-over-year for the first half, and 45% on a cumulative basis as of July end, solidifying our mid to long-term growth foundation for B2B business.
Young-Jin Kim (CFO)
B2C 사업은 고객 경험 가치를 높이며 질적, 양적 성장을 이어나가고 있습니다. 5G 보급률이 54%를 달성하고 인터넷과 IPTV 모두 전년 수준의 성장률을 유지하고 있습니다.
Speaker 6
B2C business is also sustaining its growth in terms of quality and volume by elevating customer experience and values. 5G penetration reached 54% as internet and IPTV have all maintained growth rate on par with that of last year.
Young-Jin Kim (CFO)
Cloud IDC 사업은 별도 전문 법인으로 설립하여 성장의 축으로 자리매김하였습니다. Cloud Managed Service 역량 확보와 IDC 추가 증설 등 수요에 맞춘 선제적인 대응을 통해 시장을 선도하고 있습니다.
Speaker 6
Cloud and IDC business is now established as a separate special entity, setting itself up as a solid growth pillar. We are at the forefront of the market, preemptively responding to demands as we equip ourselves with managed services capabilities for the Cloud business and build additional IDC capacity.
Young-Jin Kim (CFO)
성장형 그룹 포트폴리오의 핵심 축인 금융, 미디어 콘텐츠 사업 또한 디지코 전략을 기반으로 성장이 본격화되었습니다. 일 분기에는 적극적인 외부와의 제휴 협력을 통해 필요 사업 역량을 더하였고, 이 분기에는 가시적인 성과로 시장에 증명하고 있습니다.
Speaker 6
Key pillar of the group's portfolio of growth businesses, which comprise of financial and media and content business, have seen growth fully ramp up, supported by the digital strategy. In the first quarter, we enhanced business capacity through active partnerships and alliances with outside partners, and visible results were seen and proven in the market during the second quarter.
Young-Jin Kim (CFO)
미디어 콘텐츠 사업은 오리지널 콘텐츠의 흥행으로 ENM 채널 브랜드 인지도가 상승하며 콘텐츠 채널 플랫폼의 선순환 체계를 구축하였습니다. 그리고 CJ ENM과 전략적 제휴에 이어 Seezn, Tving 합병 결정으로 국내 일위 OTT 플랫폼을 KT그룹 미디어 밸류 체인의 한 축으로 연결하며 K-콘텐츠 선도 사업자의 기반을 마련하였습니다.
Speaker 6
For the media and content business, on the back of the popular hit from our original content, brand awareness of the ENA channel improved, building a positive feedback loop across content, channel, and the platform. Also, following strategic alliances with CJ ENM, we decided on the merger of Seezn and Tving, connecting Korea's number one OTT platform to KT Group's media value chain, equipping with a solid foundation and becoming a leading provider of K-content.
Young-Jin Kim (CFO)
KT의 금융 사업은 수익성을 강화하고 미래 성장성이 높은 시장을 공략하며 디지털 금융 플랫폼으로 진화해 가고 있습니다. BC Card는 기존 결제 사업의 성장에 더하여 MyData 사업 등을 통해 포트폴리오를 다변화하고 신성장 동력을 육성하고 있습니다. K bank는 고객 수와 수신, 여신 등 모든 영업 지표가 지속 성장하며 5분기 연속 흑자를 기록하고 다양한 외부 제휴 등을 통해 플랫폼 역량도 강화하였습니다.
Speaker 6
KT's financial business is evolving into a digital financial platform as we strengthen profitability and tap into markets with high future growth potentials. BC Card is seeing growth from its incumbent payment business, while through the MyData business, is diversifying its business portfolio and nurturing engine for future growth. K bank has also seen all of its operational indicators uptrend, including number of customers, deposits and loans, reporting a profit for five consecutive quarters, while solidifying platform capabilities through different forms of outside partnerships.
Young-Jin Kim (CFO)
그럼 지금부터 2022년 2분기 실적에 대해서 말씀드리겠습니다.
Speaker 6
I will now run through financial results for Q2 2022.
Young-Jin Kim (CFO)
영업 수익은 전년 동기 대비 4.7% 증가한 6조 3,122억 원입니다. 영업 이익은 전년 동기 대비 3.5% 감소한 4,592억 원입니다.
Speaker 6
Operating revenue was up 4.7% year-on-year, reporting KRW 6,312.2 billion, and operating profit was down 3.5% year-on-year to report KRW 459.2 billion.
Young-Jin Kim (CFO)
순이익은 전년 동기 대비 2.0% 감소한 3,634억 원입니다. EBITDA는 전년 동기 대비 1.0% 증가한 1조 3,872억 원입니다.
Speaker 6
Net income was down 2% year-on-year to KRW 363.4 billion, while EBITDA was up 1% year-over-year, reporting KRW 1,387.2 billion.
Young-Jin Kim (CFO)
다음 페이지에서 영업 비용에 대해 설명드리겠습니다.
Speaker 6
Next is operating expense.
Young-Jin Kim (CFO)
영업 비용은 인플레이션 등 거시 경제 환경 변화에 따라 사업 경비가 증가하고 일회성 인건비 비용 등의 영향으로 전년 동기 대비 5.4% 증가한 5조 8,530억 원입니다. 다음 페이지에서 재무 상태에 대해 설명드리겠습니다.
Speaker 6
Driven by changes in macro backdrop, such as inflation, business expenses were up, and on one-offs, including labor expense, operating expense was up 5.4% year-on-year, reporting KRW 5,853 billion. Next is financial position.
Young-Jin Kim (CFO)
2022년 6월 말 부채 비율은 131.1%로 전분기 대비 6.3%p 증가하였습니다. 순부채 비율은 전분기 대비 5.5%p 증가한 42.9%입니다.
Speaker 6
Debt to equity ratio as of end of June 2022 was 131.1%, up 6.3 percentage points QoQ. Net debt ratio was up 5.5 percentage point QoQ, reporting 42.9%.
Young-Jin Kim (CFO)
다음은 투자 지출에 대해 말씀드리겠습니다.
Speaker 6
Next on capital expenditure.
Young-Jin Kim (CFO)
KT그룹 차원의 DIGICO 경영 전략을 보다 명확하게 전달드리기 위해 이번 분기부터 주요 그룹사 Capex를 함께 말씀드리겠습니다. KT그룹은 상반기 투자 지출로 총 1조 7,166억 원을 집행하였습니다. KT 별도 기준 투자 지출 규모는 1조 4,022억 원이고, 금융, 미디어 콘텐츠, Cloud IDC, 부동산 등 주요 핵심 성장 분야로 구성된 그룹사 Capex는 3,144억 원이 집행되었습니다.
Speaker 6
To provide a clearer communication on KT Group's digital strategy, we will share the CapEx figure of our major subsidiaries starting this quarter. First, KT Group's first half CapEx spend was a total of KRW 1,716.6 billion, while KT standalone CapEx reported KRW 1,402.2 billion. With major subsidiary CapEx, which comprises of financial, media and content, Cloud and IDC, and real estate business amounted to KRW 314.4 billion.
Young-Jin Kim (CFO)
지금부터는 사업별 실적에 대해 설명드리겠습니다.
Speaker 6
Next is breakdown of business performance.
Young-Jin Kim (CFO)
텔코 B2C 사업은 무선 수익과 초고속 인터넷 수익의 견조한 성장으로 전년 동기 대비 1.6% 증가한 2조 3,719억 원입니다.
Speaker 6
Driven by wireless revenue and solid growth of broadband internet revenue, Telco B2C revenue was up 1.6% year-on-year, reporting KRW 2,371.9 billion.
Young-Jin Kim (CFO)
무선 수익은 5G 가입자의 성장에 힘입어 전년 동기 대비 2.0% 증가한 1조 5,503억 원입니다. 2022년 2분기 말 무선 전체 가입자는 2,340만 명으로 MVNO와 MNO 시장의 통합 관리를 통해 전체 무선 가입자의 순증세를 이어가고 있습니다.
Speaker 6
Wireless revenue on the back of 5G subscriber growth was up 2% year-over-year to KRW 1,550.3 billion. Total wireless subscribers were 23,410,000 as of Q2 end 2022, sustaining the net addition trend of total wireless subscribers, underpinned by integrated management of the MVNO and the MNO market.
Young-Jin Kim (CFO)
초고속 인터넷 수익은 기가 인터넷을 중심으로 가입자가 증가하면서 전년 동기 대비 2.5% 성장한 5,963억 원을 기록하였습니다.
Speaker 6
Broadband internet revenue was up 2.5% year-over-year to KRW 596.3 billion on subscriber growth around GiGA Internet.
Young-Jin Kim (CFO)
유선 전화 수익은 가정용 가입자가 감소하며 전년 동기 대비 3.4% 줄어든 2,253억 원입니다. 다음은 DIGICO B2C 사업입니다.
Speaker 6
Fixed-line telephony revenue was down 3.4% year-on-year to KRW 225.3 billion on decline in number of household subscribers. Next is on DIGICO B2C business.
Young-Jin Kim (CFO)
디지코 B2C 사업은 미디어 사업과 모바일 플랫폼 사업의 성장으로 전년 동기 대비 20% 증가한 5,544억 원을 기록하였습니다.
Speaker 6
DIGICO B2C business was up 2% year-over-year to KRW 554.4 billion on the back of media business and growth of the mobile platform business.
Young-Jin Kim (CFO)
IPTV 사업은 가입자 성장과 플랫폼 기반 매출 성장이 지속되며 전년 동기 대비 6.1% 성장하였습니다. 6월에는 고객의 다양한 콘텐츠 수요를 충족하고 선택을 다양화할 수 있게 초이스 요금제로 개편하였습니다.
Speaker 6
On sustained platform-based revenue growth and subscriber uptrend, IPTV business was up 6.1% year-on-year. In June, in order to satisfy wide-ranging content demands from our users and to offer more choice, we revamped the tariff plan into the Choice plan.
Young-Jin Kim (CFO)
다음은 텔코 B2C 사업입니다.
Speaker 6
Next is Telco B2B.
Young-Jin Kim (CFO)
텔코 B2B 사업은 기업 인터넷 데이터와 통화 사업이 모두 고르게 성장하며 전년 동기 대비 6.8% 증가한 5,299억 원입니다.
Speaker 6
On the back of balanced growth from enterprise internet data and voice call, Telco B2B was up 6.8% year-over-year, reporting KRW 529.9 billion.
Young-Jin Kim (CFO)
기업들의 데이터 트래픽 사용량이 가파른 증가와 프리미엄 서비스에 대한 수요 확대로 기업 인터넷 데이터 매출은 전년 동기 대비 5.9% 증가하였습니다.
Speaker 6
On steep rise in enterprise data traffic and growing demand for premium services, B2B internet and data revenue was up 5.9% year-over-year.
Young-Jin Kim (CFO)
기업 통화는 MVNO 시장 확대에 대한 선제적 대응과 기업 인터넷 전화의 순증세 지속으로 전년 동기 대비 8.9% 증가하며 고성장세를 지속하고 있습니다.
Speaker 6
Enterprise voice call continued on with a high growth posting 8.9% year-over-year increase thanks to preemptive responses to the expanding MVNO market and continuing net add trend for enterprise VoIP.
Young-Jin Kim (CFO)
다음은 디지코 B2B 사업입니다.
Speaker 6
Next is DIGICO B2B.
Young-Jin Kim (CFO)
Digico B2B 사업은 기업들의 DX 수요에 대응하여 동반 성장하고 있습니다. 전년 동기 대비 매출은 2.4% 감소한 4,810억원이나 KT Cloud를 포함한 매출 기준으로 하면 17.4% 성장한 5,786억원으로 두 자릿수 성장세를 이어가고 있습니다.
Speaker 6
DIGICO B2B business is growing in step with expanding DX demand from businesses. While the year-over-year revenue was down 2.4% to KRW 481 billion. If we include KT Cloud's revenue, there was 17.4% growth with revenue at KRW 578.6 billion, which is a double-digit growth and a continuation of such growth.
Young-Jin Kim (CFO)
Enterprise DX는 서비스 차별화를 통한 선제적인 시장 대응으로 전년 동기 대비 12.9% 성장하였고, AICC 사업의 수주 확대에 따른 본격적인 매출 성장으로 AI/New Biz 사업은 전년 동기 대비 48.1% 증가하였습니다.
Speaker 6
Enterprise DX reported 12.9% year-over-year growth as we differentiated our service offerings and responded to the market preemptively. For the AICC business on more projects and orders booked, ramping up the revenue stream, there was 48.1% year-over-year growth for the AI and new business.
Young-Jin Kim (CFO)
다음은 주요 그룹사 실적입니다.
Speaker 6
Next is subsidiary performances.
Young-Jin Kim (CFO)
비씨카드 수익은 국내 소비 개선에 따른 신용카드 매입액 증가와 금융자산 확대 등의 영향으로 전년 동기 대비 9.3% 증가한 9,912억원을 기록하였습니다.
Speaker 6
An increase in acquiring volume following recovery of domestic consumption and rise in financial assets. BC Card revenue was up 9.3% year-on-year to KRW 991.2 billion.
Young-Jin Kim (CFO)
KT스카이라이프 수익은 인터넷 재판매와 알뜰폰 사업 확대와 skyTV를 중심으로 한 콘텐츠 사업의 성장 확대로 전년 동기 대비 45.0% 증가한 2,542억원입니다.
Speaker 6
KT SkyLife revenue was up 45.2% year-on-year to KRW 254.2 billion on the back of growth from MVNO and internet resale businesses and from the content business underpinned by skyTV.
Young-Jin Kim (CFO)
콘텐츠 자회사 수익은 디지털 광고 T커머스 매출 증가와 KT Studio Genie의 사업 본격화로 전년 동기 대비 34.7% 성장한 2,853억원을 기록하였습니다.
Speaker 6
On higher revenues from digital ad and T-commerce and KT Studio Genie ramping up its business content subsidiary, revenue was up 34.7% year-on-year, reporting KRW 285.3 billion.
Young-Jin Kim (CFO)
kt estate 수익은 코로나 엔데믹 환경 하에 호텔 영업이 회복되며 전년 동기 대비 46.3% 성장한 977억원을 기록했습니다. 하반기에는 명동 Le Méridien Moxy 호텔 오픈이 예정되어 있어 KT 그룹 부동산 사업은 계속 성장해 나갈 것입니다.
Speaker 6
Under the endemic, as hotel operations started to recover, KT Estate revenue was up 46.3% year-on-year, reporting KRW 97.7 billion. For the second half, we have opening schedules upcoming for Myeongdong Le Méridien and Moxy Seoul, Myeongdong, and we expect KT's real estate business to continue on with the growth trajectory.
Young-Jin Kim (CFO)
지금까지 KT 2022년 2분기 실적을 말씀드렸습니다.
Speaker 6
So far, I've walked through KT's second quarter 2022 earnings highlights.
Young-Jin Kim (CFO)
이천이십이년 상반기는 디지코로의 성공적 전환과 핵심 성장 사업 중심의 그룹 포트폴리오 안착을 통해 사업의 운동장을 넓혀 상반기 역대 최대 매출이라는 성과를 달성하였습니다.
Speaker 6
In the first half of 2022, we recorded a record high revenue thanks to a successful transition to DIGICO and firmly established group portfolio around growth businesses, which broadened the playing field for the company.
Young-Jin Kim (CFO)
하반기에도 통신 사업에서 고객의 새로운 가치를 창출하고, 디지코 B2B 사업을 중심으로 성장형 그룹 포트폴리오를 성공적으로 발전시켜 가시적인 성과를 창출하도록 하겠습니다.
Speaker 6
We will continue to create new value for our customers from our telco business and further advance group's portfolio of growth businesses underpinned by DIGICO B2B to generate concrete results.
Young-Jin Kim (CFO)
투자자와 애널리스트분들의 더욱 많은 관심과 성원 부탁드립니다. 감사합니다.
Speaker 6
We look forward to your continued interest and support. Thank you very much.
Seung-Hoon Chi (Investor Relations Officer)
기타 세부적인 내용은 미리 배포해 드린 실적 발표 자료를 참고해 주시기 바라며, 지금부터 여러분께서 궁금해하시는 질문에 대해 답변을 드리는 시간을 갖도록 하겠습니다. 많은 분들께 질문의 기회를 골고루 드리기 위해 질문은 한 분당 두 개 이내로 제한하도록 하겠습니다.
Speaker 6
For more detailed information, please refer to the material that we have circulated previously, and we will now begin the Q&A session. To allow as many people to take part in the Q&A session, I would like to ask that you please limit your questions to two per person.
Operator (participant)
지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 일번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 이번을 눌러주시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내에서 부탁드리겠습니다.
Speaker 6
Now Q&A session will begin. Please press star one, star and one if you have any questions. Please press star two, star and two if you want to cancel questions.
Operator (participant)
In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per each participant. The first question will be provided by Joonsop Kim from KB Securities. Please go ahead with your question.
Joonsop Kim (Equity Analyst)
Thank you for the opportunity to ask this question. I would like to ask you two questions. First has to do with the mid-priced price scheme for the 5G services, and the second question relates to your B2B business. Regarding that 5G mid-range pricing scheme, your competitor has introduced that pricing scheme ahead of everyone else. I would like to get your assessment of what you expect or how you expect the competitive landscape to develop going forward. If KT also has a plan to adopt this pricing scheme, what impact are you expecting from that release? Second question, if you look at the second quarter's B2B business result, it was quite positive. What is your assessment of the growth potential from the B2B business going forward?
Young-Jin Kim (CFO)
Thank you, Mr. Kim for your question. I will first respond to your 5G pricing scheme first. We at KT were also making preparations to adopt a mid-price range pricing scheme under the objective to provide more choice, more expanded choice to the customers so that they can select the rate plan that best befit them. Just to remind you that we have a 5G mid-price pricing tariff scheme upcoming in the near future. With regards to the possible impact that this will have, because we are still at pre-launching phase, it will be. I'm quite cautious to provide you with any specific outlook for this.
Now, having said that, there will be some of the 5G subscribers who will downgrade to the lower pricing scheme, but we also have quite a bit of LTE subscribers, and I believe that by providing more choice to our subscribers in terms of the rate plans that they can select, this could actually accelerate the speed of migrating the LTE subscribers to move over to this pricing scheme. Once again, I will be able to provide you with a more clearer picture on the outlook in terms of the impact this will have after we release this pricing scheme. Moving on to the second question and what the growth drivers are for B2B and what our projections are, let me elaborate on that point.
Now, as I mentioned during my opening presentation, our B2B business is a very critical growth driver for the company. If you look at the first half numbers on a year-over-year basis, we've seen an increase in the number of orders booked by 33%. As of the end of July, that year-over-year growth was about 45%. We are seeing quite a robust trend. Just to elaborate more on what the growth engine is behind the B2B business, I would like to provide you with some more detail on that. If you look at KT's B2B overall digital or business strategy, there are three pillars to this. The first one is landing into a new business area by adding digital on top of our telco capabilities.
Second is to gain an upper hand and dominance in the DX market, DX by the different businesses and companies by really tapping into the digital segment, where we could actually leverage the potential that we have with the strong underpinning of our telco capabilities. Third is providing a customized DX model by providing a differentiated offering for each of the customer segments. In terms of the competitive edge that we have in our B2B business, KT boasts of Korea's biggest nationwide coverage in our B2B services and supported by such fixed line and wireless infrastructure, we actually have a metropolitan base, based on which we have our own sales channels that could actually address the needs and visit our customers on their site, at their office.
In order to facilitate DX transition of different businesses, what is important is the infrastructure. KT has the fixed and wireless network that is robust and stable. We also have core technologies that is required for DX, including AI, big data and Cloud. We also have a portfolio of enterprise products, whereby we could provide a customized services for each of the customer segments. That really works as the strength of KT in the sense that we can be right next to our business partners in the journey towards digital transformation. Now, in terms of the growth rate projection for our B2B revenue, the basis for that growth rate is going to be the order book that we build. Our objective therefore, for this year in terms of the revenue, is more than KRW 3 trillion.
In terms of the order book, the amount of orders that we win, our objective is to have more than KRW 3 trillion in orders for this year and also, you know, more than KRW 5 trillion by year 2025.
Seung-Hoon Chi (Investor Relations Officer)
Next question, please.
Operator (participant)
The following question will be presented by Kim Hoi Jae from Daishin Securities. Please go ahead with your question.
Kim Hoi Jae (Equity Analyst and Head of Equity Research)
Hello, this is Kim Hoi Jae from Daishin Securities. My first question relates to your content business. With the recent hit of the Extraordinary Attorney Woo on TV, there has been growing interest in your company's content investment. We are seeing a lot of changes on the content side. You've decided to merge Tving with Seezn, and we are, you know, curious as to what your future collaboration would look like with CJ ENM. Also, in that light, would like to understand whether you have other plans to merge Media Genie plus skyTV going forward. Second question relates to your wireless business. We are seeing very good measures for 5G penetration as well as ARPU, but because the penetration is so high, there is concern that maybe the ARPU uptrends may start to slow.
From a long-term perspective, what are your strategies in place to make, for you to make sure that you can actually sustain that elevated level of ARPU and wireless revenue going forward?
Young-Jin Kim (CFO)
Yeah. I will first respond to the first question about the content business. Since we've merged Tving with Seezn, what are our future collaboration plans with CJ ENM? I will respond to that first. CJ ENM과 콘텐츠 사업 파트너십 체결 배경에 대해서 먼저 설명드리도록 하겠습니다.
Speaker 6
Yes, let me first provide you with the background as to why we entered into partnership with CJ ENM.
Young-Jin Kim (CFO)
미디어 콘텐츠 사업이 디지코 전환의 아주 중요한 핵심의 축입니다. 저희는 신속한 경쟁력 확보와 scale up을 위해서 외부 파트너를 활용한 mega alliance를 구축을 계속 검토를 해 왔고, 콘텐츠 제작 역량과 유통 채널 경쟁력을 보유한 미디어 콘텐츠 선도 사업자인 CJ ENM과 전방위 파트너십을 체결하였고, 또 CJ ENM은 Studio Genie에 대해서 일천억 투자를 결정한 바 있습니다.
Speaker 6
Now, as one of the very key pillars for us to transition into a DIGICO for a media content business is a very important pillar that's going to play a key role. We've been continuously reviewing possibilities of entering into a mega alliance for us to very quickly gain competitive edge and also scale up our business through outside partnerships. Hence, we've decided to enter into an all around partnership with CJ ENM, which is a frontrunner in the media and content business, equipped with content production capabilities as well as distribution competitiveness. CJ ENM had also decided to make KRW 100 billion of investment into Studio Genie.
Young-Jin Kim (CFO)
KT가 CJ ENM과 투자 유치 및 콘텐츠 구매 편성하는 데 합의를 했고, 양사 주요 경영진이 참여한 사업협력회를 통해서 지금 전방위 협력을 본격화하고 있습니다.
Speaker 6
KT and CJ ENM have agreed to these investments as well as scheduling and purchasing of the content. Key executives of the two companies through a council of business collaboration and cooperation have really ramped up cooperation and collaboration across the board.
Young-Jin Kim (CFO)
먼저 이제 콘텐츠 구매 편성에 있어서, KT Studio Genie가 제작하는 오리지널 콘텐츠 중에 일정 물량을 tvN과 Tving 등 CJ ENM 채널과 플랫폼에 편성하기로 합의된 바 있습니다.
Speaker 6
In terms of the content sourcing and scheduling of the content, there was an agreement made so that KT Genie's original content and certain titles that it produces will be scheduled through the platforms that CJ ENM has in terms of its channel and platform, including tvN channel and Tving.
Young-Jin Kim (CFO)
콘텐츠 공동제작 분야에서도 KT Studio Genie와 CJ ENM은 이제 글로벌 대작을 목표로 해가지고 공동제작 예정입니다.
Speaker 6
In terms of co-producing AAA titles, KT Studio Genie and CJ ENM will engage in joint and co-production in order to produce a global AAA content.
Young-Jin Kim (CFO)
Tving과 Seezn 통합은 올해 12월을 목표로 지금 계획대로 잘 준비되고 있다고 말씀드리겠습니다.
Speaker 6
In terms of the merger and integration between Seezn and Tving, everything is on smooth sailing with an objective date or the target date of integration as of December this year.
Young-Jin Kim (CFO)
Media Genie와 skyTV에 대한 통합 계획에 대해서 질문하셨는데, 저희 그룹에서는 MPP 경쟁력 강화를 위해서 다양한 안을 검토 중이며, 현재 최종 결정된 바는 없는데, 결정이 되면은 시장과 바로 communication 하도록 하겠습니다.
Speaker 6
Relating to the question of future integration between Media Genie and skyTV. In order for us to further improve our competitiveness in MPP, we are at this point reviewing multiple options, but we have not yet finalized a certain direction as of today. Once we make the decision, we will come back to you and communicate that to you.
Young-Jin Kim (CFO)
두 번째 질문인 무선 매출이 지속 성장하기 위한 전략에 대해서 답변드리도록 하겠습니다.
Speaker 6
I will now move on to your second question, elaborating on our strategy to drive continuous wireless revenue.
Young-Jin Kim (CFO)
저희는 크게 세 가지 방향으로 보고 있습니다.
Speaker 6
We basically have three key strategies in place.
Young-Jin Kim (CFO)
5G 보급률이 계속 늘어나고 있고요. 아까 보고드렸듯이 상반기에 5G 보급률이 54%까지 늘어났는데, 연말까지 저희 타겟을 60%로 해서 계속 늘려나갈 계획이고, 내년에도 5G 가입자들이 늘어나면 이런 부분들이 무선 서비스 매출에 좀 긍정적으로 작용할 거라고 생각하고 있습니다.
Speaker 6
Now, the 5G penetration is continuously uptrending, and as of the first half, the figure was 54%, and our objective is to reach 60% by the end of this year. We introduced the Choice plan. This is a value-added tariff service where people, the subscribers, can select and use and subscribe the rates that they wish. Through such provision of value-added services, we wish to bring additional revenue.
Young-Jin Kim (CFO)
마지막으로 고객의 다양한 니즈에 맞춘 새로운 부가서비스 등을 준비를 하고 있습니다. 이런 부가서비스들은 구체적으로 출시가 되면 시장과 communication 하도록 하겠습니다.
Speaker 6
Last but not least, we are at this point in developing and preparing various different value-added services that satisfies our customer needs. Once we release them, we will come back to you and provide you with more details.
Seung-Hoon Chi (Investor Relations Officer)
네, 다음 연님 질문 부탁드리겠습니다.
Speaker 6
Next question, please.
Operator (participant)
다음으로 질문해 주실 분은 Morgan Stanley의 박세연 님입니다.
Speaker 6
The following question will be presented by Seyon Park from Morgan Stanley. Please go ahead with your question.
Seyon Park (Equity Research Analyst)
질문 기회 주셔서 고맙습니다. 두 가지 질문이 있는데요. 첫 번째는 KT Cloud가 이제 분사가 되면서 별도 기준으로 영업이익이 얼마 정도가 제외됐는지 혹시 좀 알 수 있을지가 궁금합니다. 두 번째는 사실 이 질문과 연관해서인데요. 현재 KT의 배당정책이 별도 기준으로 조정 순이익의 50%인 걸로 알고 있는데, 이번에 KT Cloud가 빠지면서 결국 별도의 이익이 일부 다시 빠져나가는 상황이 되어 버렸는데, 연말에 그러면 이 분사 효과 및 분사로 인해서 이번에 발생한 법인세 비용 같은 게 다시 감안되어서 배당금이 분배가 됐는지 그게 궁금합니다. 고맙습니다.
Speaker 6
Thank you. I would like to submit two questions. First, has to do with the spin-off of your Cloud business, KT Cloud. If you look at the impact that it had on the operating profit on a separate basis, like to gain some understanding as to the extent of that, what the impact was on operating profit line. Second question is in connection with this. If you look at KT's dividend payout policy, basically it is 50% of adjusted net profit on a separate basis. With KT Cloud being carved out, there of course is going to be impact on the profit. At the end of the year, when you actually distribute the dividend, would you also consider for this corporate income tax element as well when you determine the amount of dividend to be paid out at the end of the year?
Young-Jin Kim (CFO)
네. Seyon Park 질문 감사드립니다.
Speaker 6
Thank you, Mr. Park, for your question.
Young-Jin Kim (CFO)
KT Cloud 분사에 따른 별도 기준 영업이익에 대해서 질문하셨는데요. 먼저 별도 기준으로 Cloud IDC 매출은 이게 KT Cloud를 전문법인으로 설립하면서 분기당 한 추정은 한 천억 정도의 매출 감소 효과가 조금 있을 걸로 추정하고 있습니다.
Speaker 6
Yes. Let me tackle your first question. You asked a question on the separate basis operating profit impact with the carve out or spin-off of KT Cloud. Let me first talk about the top line revenue. With KT Cloud being spun off, we expect there to be about KRW 100 billion of impact on the top line revenue.
Young-Jin Kim (CFO)
전문법인이 KT에 기존대로 존재했다는 가정으로 하고 Cloud IDC의 매출을 보면 전년 동기 대비해서 11.4%, 별도 서비스 매출 3.8%로 전 분기와 동일한 매출 성장세를 현재는 유지하고 있습니다.
Speaker 6
Just assuming that the KT Cloud is still included within the KT Group. Under that assumption, if you look at, that's pre spin-off. Cloud and IDC growth, rev-growth of YoY 11.4% with, on a separate basis, service revenue 3.8%.
Young-Jin Kim (CFO)
Cloud IDC 이게 전문법인 설립에 따른 매출 감소도 있겠지만은 인건비라든지 감가비, 전력비 등의 영업비용 감소 효과도 또 동시에 발생해서 매출 감소만큼 또 이익에 끼치는 규모는 현재 크지 않을 걸로 현재 전망하고 있습니다.
Speaker 6
As just mentioned, basically the top line growth trend is continuing, but with the carve out of Cloud and IDC business, this will have an impact in terms of lowering the top line revenue. We also need to consider for the lower level of operating expense, which includes the labor cost, depreciation, and power expenses. If you think of both of these elements, we expect there's not going to be that big of an impact on the operating profit. The size, you know, much less than the reduction in the top line revenue.
Young-Jin Kim (CFO)
이 Cloud IDC 사업은 과거에는 전사 평균 대비 영업이익률이 좀 괜찮았는데 최근 몇 년간 수요 급증에 따른 초기 투자가 좀 증가되고 인력 확충 등 이런 투자성 비용들이 좀 증가되면서 현재 영업이익률은 좀 축소되고 있습니다. 저희가 장기적으로 보면 시장에 대한 선제적 대응과 이런 Cloud IDC에 대한 Capex 확대를 통해서 이익률은 개선될 걸로 전망하고 있습니다.
Speaker 6
Typically in the past, our Cloud and IDC business, their operating profit margin typically was higher compared to the company-wide average. Recently there's been a steep surge in demand, which entailed a rise in initial investment as well as other investments, for instance, hiring of additional headcount, which weighed down on the current OPM margin. From a long-term perspective, we believe that this margin will start to also improve as we more preemptively respond to the market and as we expand our capacity.
Young-Jin Kim (CFO)
예. 두 번째 질문에 대해서 답변드리도록 하겠습니다. 이제 KT Cloud에 대한 전문법인 설립으로 인한 발생한 법인세가 저희가 조정 당기순이익의 조정 요소인지에 대한 질문에 대해서 답변드리겠습니다.
Speaker 6
Yes. Now moving on to your second question. With the establishment of KT Cloud as a separate special entity in terms of the corporate income tax that we had paid and how whether that's going to be used as an item for adjustment for our adjusted net profit.
Young-Jin Kim (CFO)
저희가 지금까지 배당금의 결정 시 비현금성 손익은 조정 당기순이익에 반영해 왔습니다. 이 Cloud 분사도 법인세 비용이 회계적인 법인세지 실제로 현금 지출이 당장 나가는 건 아닙니다. 그래서 저희가 이 부분에 대해서 법인세 비용은 비현금성 비용으로 조정할 계획이라고 말씀드리겠습니다.
Speaker 6
When it comes to expense items. For non-cash expense items in P&Ls, this was an item that we considered in adjusting the net profit. In the spin-off of our Cloud business, this is also an accounting-based treatment. There was no actual cash out regarding the corporate income tax. Yes, because it's a non-cash expense item, it will be considered in the adjustment of the net profit for distribution purposes.
Seung-Hoon Chi (Investor Relations Officer)
교환, 지금 질문을 대기하고 계신 분이 계신가요?
Operator (participant)
현재 질문 대기자는 없습니다.
Seung-Hoon Chi (Investor Relations Officer)
더 이상 질문이 없으시면 이것으로 Q&A 세션을 마치도록 하겠습니다. 많은 질문과 관심에 감사드립니다. 바쁘신 일정에도 오늘 참여해 주신 모든 분들께 다시 한번 진심의 감사의 말씀을 드리며, 이상으로 2022년 2분기 실적 설명을 마치도록 하겠습니다. 감사합니다.
Speaker 6
Well, with no further questions, we would like to now close the Q&A session for the day. Thank you very much for your interest and for your questions. Thank you for joining us despite your very busy schedules. If you don't have any more questions, we would like to end the Q&A session. Thank you very much for your interest and your questions. This brings us to the end of second quarter 2022 earnings conference call. Thank you.