KT - Q4 2023
February 7, 2024
Transcript
Operator (participant)
Good morning and good evening. Thank you all for joining this conference call. Now we will begin the conference of the 2023 fourth 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 and one on your phone during the Q&A. Now, we would like to turn the conference over to Mr. Seung-Hoon Chi, KT IRO.
Min Jang (CFO and EVP of Financial Management Office)
Good morning, everyone. I would just like to clarify that there has been some organizational changes in KT. The IRO of KT is now Mr. Young-Jin Kim, and the CFO of KT is now Mr. Min Jang. We will now begin the earnings presentation for the full year 2023. This earnings call is being webcast live on the company website. Slides are also available for you to follow while listening to the call. Please note that today's presentation includes estimates of financial and operating performance based on K-IFRS that have not been reviewed by an outside auditor. As such, other than confirmed historical data, we cannot guarantee the accuracy and completeness of financial and business-related information and may change in the future. Now, Min Jang, CFO of KT, will present the 2023 annual earnings. Good morning, I am Min Jang, CFO of KT.
Today, I will go over the highlights of the annual performance of KT in 2023. KT recorded KRW 26.387 trillion in consolidated revenue, and KRW 18.3714 trillion in standalone revenue. Both consolidated and standalone revenue generated YOY growth, thanks to balanced growth of the B2C and B2B businesses, and the growth of the group's key portfolio, including finance, media, content, DX, and real estate. On standalone basis, operating income increased by 1.5% YOY to KRW 1.1854 trillion, which was mainly driven by revenue growth and efforts to boost profitability, such as improving the business implementation system.
Consolidated operating income decreased by 2.4% YOY to KRW 1,649.8 billion, due to the base effect as there was a one-time profit that was reflected in 2022. Excluding the one-off profit recognized the previous year in 2022, consolidated operating income rose by 2.1%, evidencing continued profit growth anchored in strong business fundamentals. Shareholder return in 2023 increased compared to the previous year, based on the midterm shareholder return policy announced on October seventeenth and enhanced profitability. 50% of the standalone adjusted net income will be used as resources for shareholder return. In result, cash dividend will be 1,961 per share. We have also confirmed a 27.1 billion KRW buyback program, which will be subsequently canceled.
... 네, 2023년 주당 총 주주 환원은 KRW 2,070으로, 2022년에 KRW 1,960 대비 5.6% 증가한 규모입니다. 현금 배당은 삼월 정기 주주총회 승인을 통해 확정 후 지급될 예정입니다.
Speaker 5
The total shareholder return per share in 2023 will be KRW 2,071, which is a 5.6% increase from KRW 1,961 in 2022. Cash dividends will be paid after receiving approval from the annual general shareholders meeting in March.
Min Jang (CFO and EVP of Financial Management Office)
KT는 앞으로도 수익성 개선에 기반한 주주 환원 규모 확대를 통해 주주 가치 제고에 노력하겠습니다.
Speaker 5
KT will continue to work to enhance shareholder value by increasing the size of shareholder return based on profitability improvement.
Min Jang (CFO and EVP of Financial Management Office)
지금부터 2024년 경영 방향에 대해 말씀드리겠습니다. 올해는 전 세계적으로 불확실한 대외 경영 환경이 지속되는 가운데, 통신 사업의 성장 잠재력 확대를 위한 노력을 지속하겠습니다.
Speaker 5
I will now move on to the business strategy and outlook for 2024. Amid global uncertainty surrounding the business environment at both home and abroad, we expect to continue efforts to strengthen the growth potential of the telco business.
Min Jang (CFO and EVP of Financial Management Office)
급변하는 사업 환경 속에서 KT는 AI driven DX 역량 강화와 근본적인 사업 혁신을 통해 양적, 질적 성장을 지속할 계획입니다. B2C 통신 시장은 성장 잠재력 저하에 대한 우려가 있으나, 요금, 유통, 상품 혁신 등 전반적인 고객 가치 혁신을 통해서 시장 위축 한계를 돌파하고, 지속 성장 기반을 마련해 나가겠습니다.
Speaker 5
KT will work to achieve both volume and quality growth by strengthening AI-driven DX capabilities and fundamental business innovation in a rapidly changing business environment. While there are concerns on softening growth potential of the B2C telco market, we plan to overcome the limitations of a slow market and lay the foundation for sustainable growth by innovating pricing, distribution, products, and ultimately customer value.
Min Jang (CFO and EVP of Financial Management Office)
B2B 사업은 저수익 한계 사업의 합리화와 기존 사업의 플랫폼화 등 본업 기반의 사업 구조 개선과 IT 혁신을 통해 매출과 이익의 동반 성장을 달성할 계획입니다.
Speaker 5
We will also make effort to generate both revenue and profit growth in the B2B business by improving the business structure based on core businesses, such as rationalizing low profit businesses and building platforms for existing businesses, and also by implementing IT innovation.
Min Jang (CFO and EVP of Financial Management Office)
더불어 AICC, IoT, 스마트 모빌리티, 스마트 공간 사업, 그리고 에너지 사업 등에서 B2B 분야의 오대 성장 사업을, 역량 강화, 의미 있는 레퍼런스 확보를 통해 AI-driven DX 사업자로서의 도약 기반을 마련하겠습니다.
Speaker 5
In addition, we will be laying the groundwork to leap forward in the AI driven DX market by strengthening competitiveness and securing meaningful references in the five key B2B growth areas, which are AICC, IoT, smart mobility, smart space, and energy.
Min Jang (CFO and EVP of Financial Management Office)
특히 지난 시월 출시한 초거대 AI 믿음을 기반으로 AI transformation 역량을 강화하는 가운데, multi LLM과 글로벌 사업자 제휴로 의미 있는 성과를 창출할 계획입니다.
Speaker 5
In October last year, we unveiled Mi:dm, KT's hyperscale AI, which will drive the competitiveness of our AI transformation. We plan to derive meaningful results by partnering with multi LLMs and global operators.
Min Jang (CFO and EVP of Financial Management Office)
이러한 노력을 바탕으로 2024년 KT는 본질 중심의 성장을 지속할 것이며, 연결 기준 매출 27조 원과 별도 기준 서비스 매출 16조 원 이상을 달성할 것을 목표로 하고 있습니다.
Speaker 5
Based on these efforts, the core businesses of KT should continue to propel growth in 2024. Our goal is to surpass KRW 27 trillion in consolidated revenue and KRW 16 trillion in standalone service revenue.
Min Jang (CFO and EVP of Financial Management Office)
그럼 지금부터 2023년 연간 실적에 대해서 말씀드리겠습니다.
Speaker 5
Now, I will move on to the 2023 business performance.
Min Jang (CFO and EVP of Financial Management Office)
영업 수익은 전년 대비 2.9% 증가한 26조 3,870억 원입니다.
Speaker 5
Operating revenue increased by 2.9% YOY to KRW 26,387 billion.
Min Jang (CFO and EVP of Financial Management Office)
영업이익은 전년도 반영된 일회성 이익의 역기저효과로 전년 대비 21% 감소한 1조 6,498억 원입니다.
Speaker 5
Operating income decreased by 2.4% YOY to KRW 1,649.8 billion, due to the base effect as a one-time gain was recognized in 2022.
Min Jang (CFO and EVP of Financial Management Office)
순이익은 KT Epsilon, HCN 등 종속회사의 영업권 손상차손 발생으로 인해 전년 대비 28.8% 감소한 9,887억 원입니다. EBITDA는 전년 대비 1.1% 증가한 5조 4,599억 원입니다.
Speaker 5
Net income decreased by 28.8% to KRW 988.7 billion due to impairment losses incurred on goodwill of subsidiaries such as KT Epsilon and HCN. EBITDA increased by 2.1% YOY to KRW 5,459.9 billion.
Min Jang (CFO and EVP of Financial Management Office)
다음 페이지에서 영업 비용에 대해 설명드리겠습니다.
Speaker 5
The next page is on operating expense.
Min Jang (CFO and EVP of Financial Management Office)
... 영업비용은 사업 경비, 상품 구입비 등의 영향으로 전년 대비 3% 증가한 24조 7,372억 원입니다.
Speaker 5
Operating expense increased by 3.2% YOY to KRW 24,737.2 billion, mainly due to higher general expense and cost of goods sold.
Min Jang (CFO and EVP of Financial Management Office)
다음 페이지에서 재무 상태에 대해 설명드리겠습니다.
Speaker 5
I will go over the financial position of the company on the next page.
Min Jang (CFO and EVP of Financial Management Office)
2023년 12월 말 부채 비율은 130%이며, 순 부채 비율은 전년 대비 1.5 퍼센트 포인트 감소한 39.5%입니다.
Speaker 5
The debt ratio as of December 2023 stood at 130%. The net debt ratio decreased by 1.5 percentage points YOY to 39.5%.
Min Jang (CFO and EVP of Financial Management Office)
다음은 투자 지출에 대해 말씀드리겠습니다.
Speaker 5
The next page is on CapEx.
Min Jang (CFO and EVP of Financial Management Office)
KT 그룹이 2023년 측정한 투자 지출은 총 3조 3,390억 KRW입니다. KT 별도 기준의 연간 누적 투자 지출 규모는 2조 4,116억 KRW이고, 금융, 부동산, 콘텐츠, DX 등 주요 핵심 성장 분야로 구성된 그룹사의 투자 지출은 9,074억 KRW입니다.
Speaker 5
Total CapEx executed by KT Group in 2023 was KRW 3.319 trillion, of which KRW 2.4116 trillion was spent by KT on standalone basis, and KRW 907.4 billion by the group's key growth subsidiaries in finance, real estate, content, and DX.
Min Jang (CFO and EVP of Financial Management Office)
지금부터는 사업별 실적에 대해 설명드리겠습니다.
Speaker 5
Next, I will move on to the business overview.
Min Jang (CFO and EVP of Financial Management Office)
무선 수익은 전년 대비 1.3% 증가한 KRW 6조 8,696억입니다.
Speaker 5
Wireless revenue rose by 2.3% YOY to KRW 6,869.6 billion.
Min Jang (CFO and EVP of Financial Management Office)
5G 가입자는 요금제와 부가서비스 다양화에 힘입어 전체 핸드셋 가입자 중 73%인 983만 명을 돌파했습니다. 더불어 로밍 사업 매출과 알뜰, 알뜰폰 사업의 견조한 성장이 지속되며 무선 매출 성장을 견인했습니다.
Speaker 5
5G penetration surpassed 73% or 9.83 million subscribers, thanks to diversification of plan offerings and value adding services. Also, roaming and MVNO revenue continued to show strength, driving the growth of the wireless revenue.
Min Jang (CFO and EVP of Financial Management Office)
다음은 유선 사업입니다.
Speaker 5
Next is the fixed line business.
Min Jang (CFO and EVP of Financial Management Office)
인터넷 수익은 GiGA Internet 가입자 확대에 힘입어 전년 대비 2.8% 성장한 KRW 2,460,000,000,000을 기록했습니다.
Speaker 5
Broadband revenue rose by 2.8% YOY to KRW 2,460 billion, mainly supported by an increase of GiGA subscribers.
Min Jang (CFO and EVP of Financial Management Office)
Home wireline phone revenue decreased 7.6% year-over-year to KRW 7,541 billion.
Speaker 5
Home telephony revenue declined by 7.6% YOY to KRW 754.1 billion.
Min Jang (CFO and EVP of Financial Management Office)
미디어 사업은 고 ARPU 중심으로 IPTV 가입자 기반이 지속적으로 확대되며 전년 대비 1.3% 성장했습니다.
Speaker 5
The media business grew by 2.3% YOY, supported by an increase of high ARPU IPTV subscribers.
Min Jang (CFO and EVP of Financial Management Office)
KT는 기가 TV 미디어 포털의 OTT 편의 기능과 AI 큐레이션 기능을 강화해서 Genie TV 기반의 미디어 생태계를 활성화시키고, 더불어 다양한 고객층의 니즈를 수용할 수 있는 요금제와 셋톱박스 출시 등을 통해서 가입자 기반을 확대할 계획입니다.
Speaker 5
KT will continue to expand the subscriber base by adding convenient features on the Genie TV media portal, OTT, and strengthening the AI curation function to invigorate the Genie TV ecosystem. In addition, we will be launching plans and set top boxes to accommodate the diverse needs of various customer segments.
Min Jang (CFO and EVP of Financial Management Office)
다음은 기업 서비스입니다.
Speaker 5
Next, I will move on to the B2B service.
Min Jang (CFO and EVP of Financial Management Office)
기업 서비스는 통신 서비스에 대한 시장의 견조한 수요에 더해서 AICC, IoT, 스마트 모빌리티, 스마트 공간, 에너지 사업 등 B2B 분야 오대 성장 사업의 성과 가시화로 전년 대비 2% 성장했습니다.
Speaker 5
B2B service revenue grew by 2% YOY as the five key growth businesses, namely AICC, IoT, smart mobility, smart space, and energy, start to bear fruit, and market demand for telco services remains strong.
Min Jang (CFO and EVP of Financial Management Office)
기업 인터넷 데이터 사업은 기업 고객 트래픽 증가에 힘입어서 전년 대비 4.7% 성장했습니다.
Speaker 5
Corporate broadband and data revenue rose by 4.7% YOY, thanks to the growth of corporate customer traffic.
Min Jang (CFO and EVP of Financial Management Office)
기업 인터넷 데이터 사업은 대형 CP사 외에도 신규 중소형 CP사를 지속 발굴하여 추가적인 성장 동력을 확보하고 있습니다.
Speaker 5
The corporate broadband and data business is working to develop new small, mid-sized CP customers on top of the large CPs to generate additional growth momentum.
Min Jang (CFO and EVP of Financial Management Office)
B2B 분야의 오대 성장 사업도 AICC와 엔터프라이즈 IoT 사업에서의 고객 확대를 기반으로 전년 대비 매출이 14% 증가했습니다.
Speaker 5
The key five growth businesses recorded a 2.4% YOY revenue growth, which was driven by the expansion of customer base in AICC and enterprise IoT.
Min Jang (CFO and EVP of Financial Management Office)
... AICC 사업은 구독형 ASN Cloud 출시로 고객 기반 확대를 위한 상품 라인업을 강화하였고, Enterprise IoT 사업은 무선 결제 시장에서 점유율 일위를 달성하는 등 각 신사업 영역에서 성장 기반을 강화하고 있습니다.
Speaker 5
The AICC business launched a subscription model, ASN Cloud, to strengthen the product lineup to expand customer base. The Enterprise IoT business secured the largest market share in the wireless payment market, evidencing that the key growth businesses are strengthening its growth foundation.
Min Jang (CFO and EVP of Financial Management Office)
지난 10월 31일 출시한 KT Large AI 서비스, Mi:dm은 다양한 고객 니즈에 대응하기 위해 Basic부터 Expert까지 4가지 모델을 제공을 하고 있습니다.
Speaker 5
On October thirty-first last year, KT unveiled Mi:dm, the large AI service. We are offering four models from basic to expert to cater to the diverse needs of customers.
Min Jang (CFO and EVP of Financial Management Office)
B2B 고객께 맞춤형 LLM을 제공하는 Private LLM 시장에서 시장을 우선적으로 공략할 계획이며, 더불어서 전략적인 파트너인 Upstage, Panda 등과 협업을 통해서 시장 파급력 있는 레퍼런스를 확보해 나갈 예정입니다.
Speaker 5
We will first be targeting the private LLM market to offer customized LLM services, while securing influential references by collaborating with strategic partners such as Upstage and QANDA.
Min Jang (CFO and EVP of Financial Management Office)
네, 다음은 주요 그룹사 실적입니다.
Speaker 5
Next, I will go over the subsidiaries of KT.
Min Jang (CFO and EVP of Financial Management Office)
BC 카드 수익은 자체 카드 발급과 금융 사업 등 신사업이 꾸준하게 성장하며, 전년 대비 3.3% 증가한 4조 250억 원을 기록했습니다.
Speaker 5
BC Card posted KRW 4,025 billion in revenue, which is a 3.3% increase from the previous year, supported by an increase in PLCC card issuances and its finance business.
Min Jang (CFO and EVP of Financial Management Office)
due to the impact of Sky TV's advertising revenue decrease, at the previous year's level of KRW 1,038.7 billion.
Speaker 5
Revenue of Sky Life stood at KRW 1,038.7 billion, which is similar to last year, mainly because the growth of the internet resale and MVNO was offset by a decline in advertising revenue of Sky Life TV.
Min Jang (CFO and EVP of Financial Management Office)
KT Studio 성장세를 바탕으로 콘텐츠 자회사 매출은 전년 대비 0.6% 증가한 6,870억 원입니다.
Speaker 5
KT Studio Genie drove the growth of the media business. The content subsidiary posted a revenue of KRW 687 billion, which is a 5.6% YOY increase.
Min Jang (CFO and EVP of Financial Management Office)
KT Studio Genie는 전년 대비 확대된 오리지널 콘텐츠 14편을 방영하며, 제작사로서 입지를 확고히 했습니다.
Speaker 5
KT Studio Genie released 14 original content, more than last year, solidifying its stance as a production company.
Min Jang (CFO and EVP of Financial Management Office)
Sky TV, 그리고 Genie TV 등 그룹 내의 채널과 플랫폼을 통해서 안정적인 유통 체계를 구축했으며, 해외 판매도 적극 확대하고 있습니다.
Speaker 5
A stable distribution system has been established by cooperating with in-house channels and platforms, such as Sky TV and Genie TV, while also actively increasing sales to overseas markets.
Min Jang (CFO and EVP of Financial Management Office)
KT 에스테이트는 오피스 임대 매출 증가와 호텔 사업 호조로 전년 대비 21.8% 증가한 5,940억 원을 기록했습니다.
Speaker 5
KT Estate recorded KRW 594.5 billion in revenue, which is a 21.8% increase from the previous year, thanks to higher office rent revenue and a robust hotel business.
Min Jang (CFO and EVP of Financial Management Office)
특히 호텔 사업은 추석 황금 연휴 기간에, 내외국인 수요 급증과 크리스마스 등 연말 특수로, 사분기에 역대 최고 분기 매출을 달성했습니다.
Speaker 5
The hotel business enjoyed strong demand during the Chuseok and Christmas holiday season, generating record high quarterly revenue in 2023 Q4.
Min Jang (CFO and EVP of Financial Management Office)
KT 클라우드는 기존의 수준의 공공 클라우드 사업 매출화와 IDC 사업의 견조한 성장으로 전년 대비 매출이 두 자릿수로 증가했습니다.
Speaker 5
KT Cloud recorded double-digit YOY growth, supported by monetization of public cloud project orders that were previously won by the company and the robust growth of the IDC business.
Min Jang (CFO and EVP of Financial Management Office)
클라우드 분야에서는 공공 클라우드 시장 1위 리더십을 유지하는 가운데, AI 클라우드 시장에서의 경쟁력도 강화를 하고 있고, IDC 사업 분야에서는 시장 수요에 맞춘 용량 증설과 신규 고객 확대 등을 통해 성장세를 지속할 계획입니다.
Speaker 5
KT is maintaining leadership as the number one player in the public cloud market, while paying special attention to strengthening competitiveness of the AI cloud services. In IDC, we are adding capacity to keep up with market demand and working to attract new customers to continue growth.
Min Jang (CFO and EVP of Financial Management Office)
예, 지금까지 KT 2023년 연간 실적을 말씀드렸습니다.
Speaker 5
Today, we went over the full year performance of 2023 of KT.
Min Jang (CFO and EVP of Financial Management Office)
KT는 2024년에도 IT 역량 강화와 근본적인 사업 혁신을 통해 양적인 성장뿐만 아니라 질적인 성장을 이루어내서 KT의 주주 가치를 높일 수 있도록 노력하겠습니다.
Speaker 5
In 2024, KT will make utmost effort to enhance shareholder value by achieving both quantitative and qualitative growth, by strengthening IT capabilities and implementing fundamental business innovation.
Min Jang (CFO and EVP of Financial Management Office)
... 투자자분들 그리고 애널리스트분들의 더욱 많은 관심과 성원을 부탁드립니다. 감사합니다.
Speaker 5
We ask for the continued interest and support of investors and analysts. Thank you.
Min Jang (CFO and EVP of Financial Management Office)
네, 기타 세부적인 내용은 미리 배포해 드린 실적 발표 자료를 참고해 주시기 바라며, 지금부터 여러분께서 궁금해하시는 질문에 대해 답변을 드리는 시간을 갖도록 하겠습니다. 질문은 한 분당 두 개 이내로 제한하도록 하겠습니다.
Speaker 5
For more details, please refer to the earnings presentation, which has been previously circulated. We will now begin the Q&A session. In order to allow as many Q&A opportunities as possible, we would appreciate only two questions from each participant. Thank you.지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 일번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 이번을 누르시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내에서 부탁드리겠습니다. 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. In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per each participant. 처음으로 질문해 주실 분은 대신증권의 김회재 님입니다. The first question will be provided by Hyejae Kim from Daishin Securities. Please go ahead with your question.
H.J. Kim (Equity Analyst)
provide some explanation on that. And, among the dividend sources, the amount of dividend income coming from subsidiaries, please explain how much that is; I would be grateful. Second, as the 5G penetration rate reaches 70%, the slowdown in wireless growth rate is inevitable not only for us but for all three companies. Therefore, in a situation where we have no choice but to pay attention to B2B, the growth rate seems a bit low; please also explain the future outlook for the B2B business, I would be grateful.
Speaker 5
Good morning. I am Hyejae Kim from Daishin Securities, and I have two questions. First one is regarding shareholder return policy. The DPS is KRW 1,960, and you also mentioned share buyback of KRW 27.1 billion. I would like to know how the company came up with these numbers, and also I would like to know how much of the resources for shareholder return of KT is being upstreamed by its subsidiaries. My second question is regarding 5G penetration and the B2B business. As 5G penetration reaches and surpasses 70%, I think a slower growth in the wireless business is expected of all of the telco companies, not just KT. And against this backdrop, the B2B business will become of interest of all of the telco companies. However, the growth in B2B business also seems to be slowing down.
What are your expectations and strategy for the B2B business?
Min Jang (CFO and EVP of Financial Management Office)
예, 질문에 답변드리겠습니다. 첫 번째, 주주환원 관련된 질문에 대해서는, 저희 KT는 그 중기 주주환원 정책에 따라서 현금 배당은 최소 주당 1,960억 원으로 결정을 했고, 남은 금액은 자사주 매입 소각에 활용하는 정책을 가지고 있습니다.
Speaker 5
Thank you for the question, and I will answer the shareholder return policy question first. KT has midterm shareholder return policy, which is a cash dividend of KRW 1,961 per share, and the remaining resources will be used to buy back shares.
Min Jang (CFO and EVP of Financial Management Office)
저희 그 금융자산 평가손익 등 실제 현금 유출입이 되지 않는 영업외 수익을 반영을 해서 별도 조정 당기순이익을 1조 원 규모로 산출이 됐고요. 그중에 이제 50%인 약 5,100억 원을 주주환원 재원으로 활용할 계획입니다.
Speaker 5
Yes, while reflecting the non-operating income items, such as valuation of financial assets, the adjusted net income on standalone basis was around KRW 1 trillion, and KRW 510 billion will be used for the return up to shareholders.
Min Jang (CFO and EVP of Financial Management Office)
그래서 결과적으로는 주당 배당금이 KRW 1,960억, 그래서 현금 배당 총액은 KRW 4,830억이 되고요. 나머지 KRW 271억을 자사주 매입 소각에 활용한다고 말씀드릴 수 있겠습니다.
Speaker 5
Cash dividend will be KRW 1,961 per share. That's total amount of KRW 483 billion, and the remaining KRW 27.1 billion will be used to buy back and cancel shares.
Min Jang (CFO and EVP of Financial Management Office)
예, 그리고 질문해 주신 자회사, 종속회사의 배당 수익과, 수익은, 2023년 기준으로 KRW 64.7 billion이고요. 그 외에도 이제 저희 금융상품 배당수익으로, 저희 투자한 지분에 대한 배당이 KRW 52.2 billion, 그래서 KRW 110 billion 정도가 이 배당 수익에 포함이 되어 있습니다.
Speaker 5
Yes, and in the resources for shareholder return, it's around KRW 110 billion comes from the subsidiaries. So we received dividends from subsidiaries in 2023, that was around KRW 64.7 billion, and we also received some dividends from the financial products and equity investments that we have. That's another KRW 52.2 billion. In total, it's around KRW 110 billion.
Min Jang (CFO and EVP of Financial Management Office)
... 이번에 271억원 자사주 매입 소각을 하는 거 역시 정기 주주 환원의 일환이고, 전년도 3,000억 규모의 자사주 매입과 1,000억 규모의 소각처럼 비정상적인, 자사주 매입 소각은 아직 결정된 바는 없습니다.
Speaker 5
Yes, KRW 27.1 billion share buyback and cancellation that we have mentioned is part of the shareholder return policy. Last year, we had a KRW 300 billion share buyback and KRW 100 billion cancellation of shares that was on top of the regular shareholder return policy. For this year, we currently do not have plans for the non-ordinary shareholder share buyback and cancellation of our shares at this moment.
Min Jang (CFO and EVP of Financial Management Office)
KT는 주주 가치 제고를 위해서 다양한 방안을 현재 검토 중에 있으며, 구체적인 사항이 결정될 경우에는 별도로 소통할 계획입니다.
Speaker 5
KT will continuously make utmost effort to boost shareholder value, and if we have any special plans that become more concrete in the future, we will be communicating that with the market.
Min Jang (CFO and EVP of Financial Management Office)
다음은 두 번째 질문에 주신 B2B 사업에 대한 내용인데요.
Speaker 5
Regarding the B2B business.
Min Jang (CFO and EVP of Financial Management Office)
예, 좀 질문이 두 개 섞여 있으신 것 같은데, 성장에 대해서는 B2B, 그리고 5G 전환율 둔화에 대해서도 말씀해 주셨는데, 제가 섞어서 말씀을 드리겠습니다. 일단 B2B 사업에 대해서는 KT가 국내 최대 커버리지 유무선 인프라를 기반으로 전국적인 이제 고객 사무실까지 찾아갈 수 있는 그런 차별적인 영업망을 보유하고 있다는 게, 저희의 차별성이구요.
Speaker 5
I think, your second question largely touches two points, the slowing growth of B2B and also, the 5G penetration rate. So I will try to answer both of them. The B2B business, I think KT has key competitiveness in nationwide infrastructure, and, our key strength is the fact that we can offer services all the way up to the specific offices of the customers. And so based on this large nationwide coverage, I think we have competitive edge against our competitors.
Min Jang (CFO and EVP of Financial Management Office)
그리고 올해도, 통신의 강점은 유지 또는 강화하고, 또 통신의 플랫폼화, 클라우드 결합 등 서비스 혁신을 통해서, 고객 가치를 확대하고, 아울러서 구축형에서 서비스형 중심으로 B2B 사업 구조를 내실화할 계획을 가지고 있습니다.
Speaker 5
We will be also working to maintain and strengthen the merits that we have in the telco business. We will be building platforms for the telco services and also combining our services with cloud, to innovate and offer stronger value to our customers. We will also be working to migrate on-premise services to the service type so that we can offer diverse value to the customers.
Min Jang (CFO and EVP of Financial Management Office)
예, 그리고 설명드렸듯이 AICC, Mobility, IoT, Energy 등, 오대 성장 사업을 중심으로 IT 분야에서 미래 성장 동력을 확보할 수 있도록 최대한 노력할 계획입니다.
Speaker 5
I also mentioned five key business area in my keynote. It includes AICC, Mobility, IoT, and Energy, and we will be working to strengthen IT competitiveness and innovate services in these areas to secure future growth engines.
Min Jang (CFO and EVP of Financial Management Office)
이상입니다.
Speaker 5
Thank you.
Operator (participant)
다음으로 질문해 주실 분은 KB증권의 김준섭님입니다. The following question will be presented by Jun Sop Kim from KB Securities. Please go ahead with your question.
Jun Sop Kim (Senior Research Analyst)
예, 질문 기회 주셔서 감사합니다. KB증권 김준섭입니다. 좀 전에 설명해 주시던 기업 서비스 오대 성장 사업 관련해서 조금 세부적으로 좀 더 여쭤보고 싶고요. 그리고 또 그 무선 온라인 다이렉트 요금제 관련해서 좀 추가적으로 여쭤보고 싶습니다. 먼저 그 오대 성장 사업 관련해서 여쭤보면, 그 오대 성장 사업 매출액을 연평균 성장률로 보니까 성장률이 상당히 좀 인상적인데요. 그 AICC를 포함한, 세부적인 사업을 중심으로 성과와 현황을 좀 공유를 해 주시고, 향후의 전략 방향성을 알려주시면 해당 사업들을 이해하는 데 좀 큰 도움이 될 것 같습니다. 그리고 두 번째는 온라인 다이렉트 요금제에 대해서 저희 장표에 표시를 해 주셨는데요. 그 일단 작년 온라인 다이렉트 요금제 출시 이후에 시장 반응이나, 이에 따른 KT 유통 전략 변화 또는 무선 시장이 미치는 변화에 대해 말씀해 주시면, 저희, 무선 사업의 향후 시세를 전망해 보는데 큰 도움이 될 것 같습니다. 감사합니다.
Speaker 5
Good morning. My name is Jun Sop Kim from KB Securities, and thank you for the opportunity today. I have two questions. First one is regarding to the key growth areas. I looked at the annual, CAGR growth rate that you are expecting, and it was quite impressive. So including the AICC business, if you can go over the key growth businesses that you have mentioned in the keynote, talk about, the current performance and also the strategic direction and outlook for the future, it will be very helpful. Second question is regarding the online, plans that you have launched last year.
I would like to know how the market is responding, how that would change the distribution strategy of KT, and how that will impact the telco market in the larger sense, and that will help me better understand the wireless revenue in the future. Thank you.
Min Jang (CFO and EVP of Financial Management Office)
예, 질문 감사합니다. 첫 번째 질문 주신, 오대 성장 사업에 대해서 조금 자세히 설명드리겠습니다. 먼저 AICC 사업은 저희의 first move으로서 시장 내에 리더십을 공고하는 데 목표를 두고 있고, 구축형 사업으로, 에 대해서는 이익을 개선하고, 또 저희가 구독형 사업으로 출시한 ASN, 클라우드는 본격적인 성장을 위해서 레퍼런스를 확보해 나갈 계획이 있습니다.
Speaker 5
Thank you for the questions. I will first go over the five key growth areas. AICC, we plan to be, continue our leadership and, maintain our position as the first mover. For on-premise, we plan to improve profitability from success for subscription model. We have launched ASN, the cloud service, and so we will be making efforts to secure meaningful references in this area.
Min Jang (CFO and EVP of Financial Management Office)
Yeah, 그리고 IoT 분야에서는 저희가, 무선 결제기 분야에서는 이년 연속 순증 일위를 달성을 하고 있고, 이 부분을 더욱더, 강화할 계획이고, 또 E2E 관제 역량 기반의, 양적 성장도 계획을 하고 있습니다.
Speaker 5
Yes, and then regarding IoT, we are the number one player in terms of net growth for two consecutive years in the wireless payment market. So we will be strengthening our position here. And in the remote control area, we will be working to generate the volume growth so that we can secure more customers and more volume.
Min Jang (CFO and EVP of Financial Management Office)
에너지 분야에서는 아직 시장 규모는 상당히 크진 않지만 성장하고 있는 demand response 분야나 중개 거래 분야에서 저희가 의미 있는 점유율을 차지하고 있고, 이 부분에서 더욱 성장할 계획입니다.
Speaker 5
Then in the energy business, it is still quite small market, but the growth is very visible. In the DR demand response and energy brokerage, businesses, I think we will be working to secure meaningful MS.
Min Jang (CFO and EVP of Financial Management Office)
모빌리티는 저희가 가지고 있는 커넥티카 시장의 리더십을 지속하고, 글로벌 시장 진출도, 탐색하고 있습니다.
Speaker 5
In the mobility area, we have leadership in the connected car business, so we will be solidifying our position there, and we are also exploring, venturing into overseas markets.
Min Jang (CFO and EVP of Financial Management Office)
마지막으로 스마트 공간 분야에서는 정부나 지자체를 대상으로 스마트 시티, 산업단지, 공공관제, 이런 시장들을 집중 공략할 계획입니다.
Speaker 5
And lastly, in the smart space business, we will be working to develop relationships and businesses with government and local governments, regarding their smart city infrastructure layout, industrial complexes, and remote control area.
Min Jang (CFO and EVP of Financial Management Office)
예, 두 번째 질문 주신, 그, 온라인 다이렉트 문제에 대해서 말씀드리겠습니다. 저희는 이제 지난 일월에 약정 없이 합리적 가격으로 이용할 수 있는, 요고라는 이름의 온라인 다이렉트 상품을 냈고, 거기서, 고객의 소구하는 바는, 무선 데이터는 늘리고, 부담은 낮춘다는 점으로 신상품을 출시했습니다.
Speaker 5
I will go over our online direct plan. In January, we launched Yogo, which is a plan that does not require contract, and it's at the same time enables the customer to enjoy larger amounts of data with less financial burden.
Min Jang (CFO and EVP of Financial Management Office)
아직은 출시 초기 단계라서 가입자 영향을 지속적으로 모니터링하는 단계이기는 합니다. 하지만 저희가 지금 설명드린 고객의 어필 사항, 요금제 취지에 맞게, 필요한 고객을 중심으로 5G 저변을 확대하는 데 상당히 긍정적인 효과가 있을 것으로 기대하고 있습니다.
Speaker 5
So it was just launched last month, and it is a little bit early to discuss about how the market is responding. We are monitoring the market and the customer response very closely, and like I've mentioned, one key merit of this plan is to offer 5G at reasonable plan, reasonable price, and we believe that this will help us expand the subscriber base for 5G.
Min Jang (CFO and EVP of Financial Management Office)
네, 이상입니다.
Speaker 5
Thank you.
Operator (participant)
다음으로 질문해 주실 분은 NH 투자증권의 안재민 님입니다. The following question will be presented by Jaemin An from NH Investment & Securities. Please go ahead with your question.
Jaemin Ahn (Analyst)
All three telecom companies seem to have presented their 2024 guidance somewhat conservatively, and it seems the same for you. So, I would appreciate it if you could talk a bit about the company's outlook or strategy, the business strategy parts centered on the wireless business this year. Second, recently in media reports, I saw news about restructuring the healthcare business and M-mobile, Telecab, such businesses. Regarding this part, I would appreciate an update on how it is progressing.
Speaker 5
Good morning! I am Jaemin An from NH Securities, and thank you for the opportunity today. I have two questions. First one is regarding the outlook of the wireless business. I think all of the three telco companies have given quite conservative guidance for 2024, and we also have similar view. It would be great if you can elaborate on the outlook and the strategy that you have for the company in 2024, especially in the wireless business. Second question is regarding some media reports. I read that KT is going to restructure healthcare, M-mobile, and also Telecab as well. I was wondering how this process is progressing at the moment?
Min Jang (CFO and EVP of Financial Management Office)
...예, 먼저 두 번째, 질문 주신 사항부터 간단히 답변드리면, KT 텔레캅이나 M모바일에 대해서 시장의 어떤 뭐, 이야기들이 있는데 현재 구체적으로 검토된 사항은 없습니다.
Speaker 5
Yeah, so I will answer your second question first. So I understand there are some talks in the market regarding how we are going to approach Telecab and M-mobile, but at this point, we have not made any specific and concrete decisions yet.
Min Jang (CFO and EVP of Financial Management Office)
두 번째 질문에 답변을 드리면, 작년 2023년에 우선 저희 KT 무선 사업은 5G 비중이 확대되면서, ARPU 성장도 지속이 되었습니다.
Speaker 5
Then regarding your first question, in 2023, we saw the 5G subscription increase, and also we saw the ARPU increase as well. So wireless business was quite robust for KT in 2023.
Min Jang (CFO and EVP of Financial Management Office)
5G 가입자 비중이 73%에 달했기 때문에 증가세가 다소, 다소 이제 둔화될 수는 있다고 보지만, 하여튼 저희는 다양한 니즈를 가진 고객들의 선택권을 강화하고, 맞춤형으로 상품도 제안하는 등의 계속 말씀드린 것처럼 요금과 유통, 그리고 상품의 가치 혁신을 통해서 무선 사업의 성장을 지속할 계획을 가지고 있습니다.
Speaker 5
5G penetration has reached 73%, so inevitably, the growth can slow down. But we will continue our efforts to offer diverse products to cater to the needs of the customers. And we are also working to offer customized product to customers as well. We will make utmost effort to implement value implementation in the different pricing schemes, distribution channels, and product as well, so that we can continue to satisfy our customers.
Min Jang (CFO and EVP of Financial Management Office)
예, 그 내용을 좀 더 자세히 설명드리면, 요금 측면에서는 중저가 다이렉트 요금제 같은 요금 다변화, 그리고 유통 측면에서는 비대면 유통 채널 강화, 그리고 상품 측면에서는 세그먼트에 따른 맞춤형 서비스 제공 같은 것들을 준비하고 있습니다.
Speaker 5
To go into a little bit more detail, in terms of pricing and plans, we are planning to offer a more diverse array of plans to customers by launching mid, low-end plans and also online direct plans. In distribution, we will be working to expand the contactless distribution channel, and in product, we will be having more meticulous customer segmentation to ensure that we can offer customized products.
Min Jang (CFO and EVP of Financial Management Office)
예, 이러한 노력들을 통해서 올해는 5G 가입자 비중이 80% 이상까지 증가할 것으로 예상은 되지만, 이 시장에서 저희가 지속적으로 성장할 계획을 구체화하고 현실화하는 데 최선의 노력을 다하겠습니다.
Speaker 5
Based on these efforts, we are hoping to reach 80% in 5G penetration this year. We will continue to develop strategies and products to better satisfy our customers, so that we can continue growth in the wireless business.
Min Jang (CFO and EVP of Financial Management Office)
이상입니다.
Speaker 5
Thank you.
Min Jang (CFO and EVP of Financial Management Office)
더 질문하실 분 계시면, 예. 현재 대기 중이신 그 질문자가 없으시므로, 이상으로 마치겠습니다. 더 이상 질문이 없으시면 이것으로 Q&A 세션을 마치도록 하겠습니다. 바쁘신 일정에도 오늘 참석해 주신 모든 분들께 감사의 말씀드리며, 이상으로 2023년 연간 실적 설명을 마치겠습니다.
Speaker 5
If there are no further questions, we will conclude the Q&A session. Thank you for your questions and interest in KT. Thank you once again for attending today's earnings call despite your busy schedules. We will conclude the earnings call of KT for the full year 2023. Thank you!