Kt Corp reports 19.5 pp EBITDA Margin decline from 19.5% to in 2019 in 2019
06 Feb 2020 • About Kt Corp (
$KTCD) • By InTwits
Kt Corp reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is declining: in FY2019 vs. 19.5% in FY2018 vs. 22.1% in FY2015
- It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.8%.
Net Income margin showed almost no change in FY2019.
Management team
The company's CEO is Hwang Chang-Gyu. Hwang Chang-Gyu is a founder and has 6 years tenure with the company. The company's CFO Yoon Kyung-Keun has spent 5 years with the company.
Financial and operational results
FY ended 30 Nov -0001
Kt Corp ($KTCD) key annual financial indicators| mln. KRW | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 22,281,221 | 22,743,665 | 23,387,267 | 23,460,143 | 24,342,000 | 3.8% |
| Gross Profit | 17,352,326 | 17,851,742 | 19,521,013 | 19,478,656 | | |
| SG&A | 12,439,028 | 12,898,616 | 14,612,590 | 14,758,644 | | |
| EBITDA | 4,919,480 | 4,861,479 | 4,812,967 | 4,581,808 | | |
| EBIT | | | | 1,261,522 | | |
| Interest expence | | | | 296,873 | | |
| Tax | | | | 328,437 | | |
| Net Income | 552,964 | 711,089 | 476,744 | 688,464 | 619,200 | -10.1% |
Balance Sheet
|
|---|
| Cash | 2,550,431 | 2,880,391 | 1,911,345 | 2,679,452 | | |
| Inventory | | | | 683,998 | | |
| Short Term Debt | 1,787,273 | 1,884,009 | 1,642,125 | 1,427,805 | | |
| Long Term Debt | 7,003,821 | 6,417,496 | 5,110,188 | 5,279,812 | | |
Cash flow
|
|---|
| Capex | 3,115,728 | 2,764,346 | 2,442,223 | 2,260,879 | | |
| Dividends | | | | 298,632 | | |
Ratios
|
|---|
| Revenue growth | -4.9% | 2.1% | 2.8% | 0.3% | 3.8% | |
| EBITDA growth | 40.9% | -1.2% | -1.0% | -4.8% | | |
|
|---|
| Gross Margin | 77.9% | 78.5% | 83.5% | 83.0% | | |
| EBITDA Margin | 22.1% | 21.4% | 20.6% | 19.5% | |
| EBIT Margin | | | | 5.4% | |
| SG&A, % of revenue | 55.8% | 56.7% | 62.5% | 62.9% | | |
| Net Income Margin | 2.5% | 3.1% | 2.0% | 2.9% | 2.5% | -0.4% |
| CAPEX, % of revenue | 14.0% | 12.2% | 10.4% | 9.6% | | |
|
|---|
| ROIC | 5.7% | 6.9% | 6.7% | 6.0% | | |
| ROE | 5.2% | 6.4% | 4.1% | 5.5% | | |
| Net Debt/EBITDA | 1.3x | 1.1x | 1.0x | 0.9x | |
| Interest coverage ratio (ICR) | | | | 4.2x | |
| Interest expence / Average debt | | | | 4.4% | | |
Peers in Fixed Line Telecommunications
Below we provide Kt Corp benchmarking against other companies in Fixed Line Telecommunications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Adept Telecom ($ADT) | 5.8% | 30.9% | 19.2% | 34.8% | |
| Verizon Communications Inc ($VZC) | | -4.3% | 0.0% | 3.8% | 0.8% |
| O2 Czech Republic As ($O2CZ) | | 0.9% | 0.3% | 0.9% | 1.7% |
| BT Group ($BT.A) | -1.7% | 5.7% | 26.6% | -1.4% | |
| Orange Polska Sa ($OPLD) | -3.0% | -2.6% | -1.4% | -2.5% | |
| |
|---|
| Median (6 companies) | -0.4% | 0.1% | 0.3% | -0.2% | 1.2% |
|---|
| Kt Corp ($KTCD) | | 2.1% | 2.8% | 0.3% | 3.8% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Verizon Communications Inc ($VZC) | 60.1% | 59.2% | 59.1% | 57.6% | 58.5% |
| O2 Czech Republic As ($O2CZ) | | 48.5% | 48.7% | 49.9% | 51.3% |
| Adept Telecom ($ADT) | 37.6% | 40.3% | 42.3% | 49.4% | |
| |
|---|
| Median (3 companies) | 41.3% | 45.9% | 48.7% | 49.9% | 54.9% |
|---|
| Kt Corp ($KTCD) | 77.9% | 78.5% | 83.5% | 83.0% | |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Ooredoo Qsc ($ORDS) | 39.2% | 39.2% | 40.5% | 36.9% | |
| Verizon Communications Inc ($VZC) | 37.3% | 34.1% | 35.2% | 30.3% | 35.7% |
| BT Group ($BT.A) | 33.5% | 32.8% | 28.0% | 29.1% | |
| O2 Czech Republic As ($O2CZ) | 29.9% | 27.3% | 27.8% | 28.0% | 29.1% |
| Orange Polska Sa ($OPLD) | 29.1% | 11.9% | 24.6% | 26.0% | |
| |
|---|
| Median (6 companies) | 29.9% | 30.6% | 31.0% | 28.5% | 32.4% |
|---|
| Kt Corp ($KTCD) | 22.1% | 21.4% | 20.6% | 19.5% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Orange Polska Sa ($OPLD) | 16.9% | 44.8% | 17.0% | 20.6% | |
| Ooredoo Qsc ($ORDS) | 26.5% | 17.6% | 11.6% | 15.6% | |
| BT Group ($BT.A) | 13.4% | 12.8% | 13.1% | 14.2% | |
| Verizon Communications Inc ($VZC) | 13.5% | 13.5% | 13.7% | 12.7% | 13.6% |
| O2 Czech Republic As ($O2CZ) | 4.5% | 4.0% | 5.1% | 3.9% | 4.1% |
| |
|---|
| Median (6 companies) | 14.4% | 15.1% | 13.7% | 13.5% | 8.8% |
|---|
| Kt Corp ($KTCD) | 14.0% | 12.2% | 10.4% | 9.6% | |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| O2 Czech Republic As ($O2CZ) | 14.5% | 26.8% | 25.8% | 24.3% | 23.2% |
| BT Group ($BT.A) | 37.5% | 20.7% | 13.9% | 15.4% | |
| Adept Telecom ($ADT) | 14.3% | 16.5% | 14.2% | 14.1% | |
| Verizon Communications Inc ($VZC) | 19.3% | 15.4% | 14.8% | 11.3% | 15.3% |
| Ooredoo Qsc ($ORDS) | 6.4% | 6.1% | 6.9% | 4.4% | |
| |
|---|
| Median (11 companies) | 8.2% | 7.8% | 8.3% | 12.7% | 19.2% |
|---|
| Kt Corp ($KTCD) | 5.7% | 6.9% | 6.7% | 6.0% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Verizon Communications Inc ($VZC) | 2.1x | 2.4x | 2.6x | 2.8x | 2.8x |
| Orange Polska Sa ($OPLD) | 1.2x | 5.1x | 2.3x | 2.4x | |
| Adept Telecom ($ADT) | 0.3x | 1.0x | 2.2x | 2.3x | |
| BT Group ($BT.A) | 1.6x | 2.2x | 1.8x | 2.0x | |
| Ooredoo Qsc ($ORDS) | 2.0x | 2.0x | 1.6x | 1.8x | |
| |
|---|
| Median (6 companies) | 1.2x | 1.9x | 2.0x | 2.2x | 2.0x |
|---|
| Kt Corp ($KTCD) | 1.3x | 1.1x | 1.0x | 0.9x | |
