KT profits slide 60% in Q1April 25, 2008 – Korean telco KT has posted a net profit of KRW 154.1bn (US$ 155mn).for the first quarter of this year, down a steep 60% from the same period of last year.
Total revenue for the first three months of this year fell 0.2% by the same comparison to reach KRW 2,970bn. The steep fall in profits is attributed to a 16% rise in marketing expenses, especially for its “MegaTV” IPTV service, and stalled revenue growth. KT stated that it increased the number of subscribers to MegaTV by 75% in the first three months of this year to reach 567,230. The company aims to increase this figure to 1.5mn by the end of this year. “It looks like costs are rising and competition is heating up more than KT had expected,” said Valentine Kim, Analyst for NH Investment & Securities in Seoul. “We’ll have to wait and see if the company can meet its earnings projection.” The telco is projecting record revenues of over KRW 12,000bn for 2008 and an operating profit of KRW 1,500bn for the full year. |
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