KT (KT) Gross Margin % : 63.03% (As of Sep. 2023)

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What is KT Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KT's Gross Profit for the three months ended in Sep. 2023 was $3,164 Mil. KT's Revenue for the three months ended in Sep. 2023 was $5,020 Mil. Therefore, KT's Gross Margin % for the quarter that ended in Sep. 2023 was 63.03%.

The historical rank and industry rank for KT's Gross Margin % or its related term are showing as below:

KT' s Gross Margin % Range Over the Past 10 Years
Min: 57.43 Med: 59.3 Max: 73.21
Current: 73.21

During the past 13 years, the highest Gross Margin % of KT was 73.21%. The lowest was 57.43%. And the median was 59.30%.

KT's Gross Margin % is ranked better than
84.42% of 353 companies
in the Telecommunication Services industry
Industry Median: 49.04 vs KT: 73.21

KT had a gross margin of 63.03% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for KT was 0.80% per year.

KT Gross Margin % Historical Data

The historical data trend for KT's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KT Gross Margin % Chart

KT Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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58.02

59.38

59.68

62.01

KT Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															60.35	62.74	66.51	63.03	-

Competitive Comparison of KT's Gross Margin %

For the Telecom Services subindustry, KT's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

KT's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, KT's Gross Margin % distribution charts can be found below:

* The bar in red indicates where KT's Gross Margin % falls into.

KT Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

KT's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	12291.6	/	19820.339
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(19820.339 - 7528.777)	/	19820.339
	=	62.01 %

KT's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	3164.1	/	5019.679
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5019.679 - 1855.597)	/	5019.679
	=	63.03 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

KT (NYSE:KT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

KT had a gross margin of 63.03% for the quarter that ended in Sep. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

KT Gross Margin % Related Terms

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KT (KT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » KT Corp (NYSE:KT) » Definitions » Gross Margin %

Traded in Other Exchanges

030200:Korea KTC:Germany

Address

90 Bulljeong-ro (206 Jungja-dong), Bundang-gu, Gyeonggi-do, Seongnam-si, KOR, 13606

Website

https://corp.kt.com

KT is South Korea's largest fixed-line telecom operator, with around 9.0 million fixed-line broadband customers and 9.4 million IPTV customers, and is the second-largest wireless operator with 25 million subscribers. Additionally, it has a number of nontelecom businesses, including real estate, payment processing, artificial intelligence, and IDC/cloud services, many of which are the focus of its growth strategy. The company was formed from the previously government-owned, monopoly telecom business and was listed in 1998. After selling its mobile business in 1994 (forming its mobile competitor, SK Telecom) KT created its own mobile operator in 1997.