KT Corporation reported consolidated and separate unaudited earnings results for the second quarter and six months ended June 30, 2018. For the quarter, on consolidated basis, the company reported operating revenue of KRW 5,806,938 million as compared to KRW 5,842,474 million for the same period last year. Operating profit was KRW 399,149 million as compared to KRW 447,281 million for the same period last year. Profit before income tax expense was KRW 391,210 million as compared to KRW 315,922 million for the same period last year. Profit for the period was KRW 280,672 million as compared to KRW 258,078 million for the same period last year. Profit for the period attributable to owners of the controlling company was KRW 251,022 million as compared to KRW 222,199 million for the same period last year. Basic and diluted earnings per share were KRW 1,024 as compared to KRW 907 for the same period last year.

For the six months, on consolidated basis, the company reported operating revenue of KRW 11,517,139 million as compared to KRW 11,454,151 million for the same period last year. Operating profit was KRW 796,271 million as compared to KRW 864,272 million for the same period last year. Profit before income tax expense was KRW 744,195 million as compared to KRW 633,880 million for the same period last year. Profit for the period was KRW 504,764 million as compared to KRW 482,420 million for the same period last year. Profit for the period attributable to owners of the controlling company was KRW 447,979 million as compared to KRW 422,952 million for the same period last year. Diluted earnings per share were KRW 1,828 as compared to KRW 1,726 for the same period last year. Net cash inflow from operating activities was KRW 1,972,731 million as compared to KRW 1,873,527 million for the same period last year. Acquisition of property and equipment and investment properties was KRW 1,014,491 million as compared to KRW 1,084,305 million for the same period last year. Acquisition of intangible assets was KRW 348,969 million as compared to KRW 468,359 million for the same period last year.

For the quarter, on separate basis, the company reported operating revenue of KRW 4,283,030 million as compared to KRW 4,292,582 million for the same period last year. Operating profit was KRW 307,657 million as compared to KRW 301,427 million for the same period last year. Profit before income tax expense was KRW 286,386 million as compared to KRW 173,694 million for the same period last year. Profit for the period was KRW 209,921 million as compared to KRW 160,723 million for the same period last year. Basic and diluted earnings per share were KRW 856 as compared to KRW 656 for the same period last year.

For the six months, on separate basis, the company reported operating revenue of KRW 8,580,189 million as compared to KRW 8,454,000 million for the same period last year. Operating profit was KRW 612,614 million as compared to KRW 620,350 million for the same period last year. Profit before income tax expense was KRW 718,599 million as compared to KRW 531,964 million for the same period last year. Profit for the period was KRW 526,688 million as compared to KRW 445,308 million for the same period last year. Basic and diluted earnings per share were KRW 2,149 as compared to KRW 1,818 for the same period last year. Net cash inflow from operating activities was KRW 1,811,187 million as compared to KRW 2,040,393 million for the same period last year. Acquisition of intangible assets was KRW 285,994 million as compared to KRW 434,053 million for the same period last year. Acquisition of property and equipment was KRW 860,158 million as compared to KRW 917,407 million for the same period last year.

The estimated average annual income tax rate used for the year ended December 31, 2018, is 32.17%.