2Q17 Earnings Results‌‌‌‌‌‌ Aug 01, 2017

The financial information in this document are earnings results based on K-IFRS. This document is provided for the convenience of investors only, before our external audit on 2Q 2017 is completed .The audit outcomes may cause some parts of this document to change. This document may contain "forward-looking statements" - that is, statements related to future, not past, events. In this context, "forward-looking statements" often address our

expected future business and financial performance. These uncertainties may cause our actual results to be materially different from those expressed in1

this document.

  • Achieved historical high CATV subscribers by adding additional 24k in 2Q to a total of 4.17mn subscribers

  • Boasting healthier subscriber mix with expanding digital subscribers which now accounts for 65% at 2.7mn

  • MVNO subscribers dwindled down by 8k QoQ, but LTE subscribers stretched further by 6k accounting for 53%

    ▣CATV Subscribers ▣Digital TV Subscribers ▣MVNO Subscribers & LTE % QoQ +24k QoQ +22k 43%

    MVNO LTE (%)

    53% 52% QoQ YoY +77k 4.10 4.15 4.17 YoY +129k 2.69 2.71 YoY +32k 865 -8k 857

    (Mn)

    2.58

    (Mn)

    825 (Thousand) 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17

    (Unit: Subscriber, %)

    2015

    2016

    2017

    1Q15

    2Q15

    3Q15

    4Q15

    1Q16

    2Q16

    3Q16

    4Q16

    1Q17

    2Q17

    Cable TV

    4,117,279

    4,104,932

    4,103,495

    4,102,128

    4,097,771

    4,096,150

    4,096,693

    4,119,228

    4,149,715

    4,173,345

    -Analog

    1,619,199

    1,586,308

    1,571,136

    1,549,214

    1,530,718

    1,515,180

    1,495,261

    1,473,942

    1,461,341

    1,463,242

    -Digital

    2,498,080

    2,518,624

    2,532,359

    2,552,914

    2,567,053

    2,580,970

    2,601,432

    2,645,286

    2,688,374

    2,710,103

    -Digital Penetration rate

    61%

    61%

    62%

    62%

    63%

    63%

    64%

    64%

    65%

    65%

    Internet

    901,510

    887,409

    872,796

    860,253

    850,214

    837,230

    827,136

    825,331

    829,632

    827,703

    VoIP

    729,437

    713,193

    693,485

    673,167

    654,395

    634,263

    616,210

    598,919

    583,762

    564,962

    MVNO

    856,647

    881,449

    853,283

    843,350

    830,987

    824,723

    823,913

    853,254

    865,354

    856,904

    -LTE

    270,126

    302,185

    303,347

    328,295

    343,660

    358,385

    376,896

    423,410

    448,802

    455,020

    2

  • Cable TV ARPU fell by 1.2% QoQ by offering economic packages to accelerate organic subscriber growth

  • Digital TV ARPU fell by1.4% QoQ, but continuous subscriber growth hints for rebound soon

  • MVNO ARPU improved slightly QoQ due to temporarily shifting away from growth strategy to secure profitability

    ▣Digital TV ARPU ▣MVNO ARPU

    (KRW) (KRW)

    10,417 -4.2% YoY 10,121 -1.4% QoQ 9,977 22,234 -1.6% YoY 21,691 +0.8% QoQ 21,872 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17

    (Unit: KRW, %)

    2015

    2016

    2017

    1Q15

    2Q15

    3Q15

    4Q15

    1Q16

    2Q16

    3Q16

    4Q16

    1Q17

    2Q17

    Cable TV

    8,236

    8,262

    8,458

    8,299

    8,013

    7,937

    8,029

    7,854

    7,771

    7,676

    -Analog

    4,012

    3,893

    3,716

    3,529

    3,399

    3,290

    3,202

    3,100

    3,016

    2,947

    -Digital

    10,737

    10,787

    11,150

    10,948

    10,521

    10,417

    10,558

    10,270

    10,121

    9,977

    Internet

    11,899

    11,869

    11,834

    11,786

    11,704

    11,639

    11,635

    11,551

    11,375

    11,247

    VoIP

    6,693

    6,734

    6,396

    6,304

    5,886

    5,662

    5,691

    5,801

    5,963

    6,027

    MVNO

    19,079

    19,507

    21,142

    21,457

    21,650

    22,234

    22,026

    21,927

    21,691

    21,872

    3

  • Revenue remained flat QoQ posting W275.7bn, getting in gear for meaningful growth going forward

  • Homeshopping commission remained flat despite commission cut reflected from 2016 thanks to T-commerce

  • MVNO revenue fell by 8% QoQ as a result of strategic shift to bolster profitability during 2Q

▣Revenue ▣Digital TV ▣Homeshopping ▣MVNO 275 276 83 83 -0.3% 57 57 70 64 +0.2% QoQ

(KRW bn)

QoQ +0.3%

QoQ-8.0%

QoQ 1Q17 2Q17 1Q17 2Q17 1Q17 2Q17 1Q17 2Q17

(Unit: KRW bn)

2Q16

1Q17

2Q17

Revenue

280.3

275.2

275.7

TV

Analog

14.2

12.9

12.5

Digital

82.4

82.8

82.6

VOD

19.6

18.5

18.0

Internet & phone

Internet

30.5

28.8

28.5

VoIP

10.7

10.3

10.1

Advertising

Homeshopping

58.8

57.0

57.2

Local Adv.

7.4

6.5

9.2

Adjacent businesses

MVNO

69.1

69.7

64.1

Service

55.1

55.8

56.6

Handset

14.0

13.8

7.5

Miscellaneous

7.4

7.2

11.7

QoQ (%)

YoY (%)

0.2%

-1.6%

-3.1%

-11.7%

-0.3%

0.2%

-3.1%

-8.2%

-1.4%

-6.7%

-1.9%

-5.6%

0.3%

-2.8%

40.7%

24.9%

-8.0%

-7.2%

1.4%

2.7%

-45.9%

-46.4%

63.4%

59.5%

4

CJ HelloVision Co. Ltd. published this content on 01 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 01 August 2017 07:16:19 UTC.

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