SK Telecom’s net profit surges while KT reports net loss for 4Q (South Korea)

January 23, 2009 at 20:41 Leave a comment

South Korean operators SK Telecom (SKT) and KT Corp (KT) have both reported financial results for the three months ended 31 December 2008, with SK Telecom coming out on top as it revealed a massive jump in net profit of almost 398% to KRW263.1 billion (USD191.5 million), up from KRW66 billion a year earlier. The impressive result was widely attributed to a fall in marketing costs. Operating profit for SKT also rose, up 50.9% to KRW468.8 billion, while revenues for the period increased 3.1% year-on-year to KRW3 trillion. Despite the strong quarter SKT’s full year figures showed a fall in net profit over the twelve month period to KRW1.6 trillion, a fall of 22.2%. High marketing expenses earlier in 2008, coupled with high levels of investment, which totalled KRW5 trillion, were cited as the reason for the fall over the year. For the twelve month period revenues increased 3.4% to KRW11.6 trillion. SKT reported that at the end of December 2008 it had 23.03 million subscribers, up 5% from same date in 2007.

Citing heavy currency related losses due to a weak won, results for KT for the fourth quarter were less impressive, as it registered a net loss for the period of KRW26.6 billion, the first quarterly loss for the operator in five years. The operator has also blamed the migration of fixed line customers to alternative VoIP-based services as another contributory factor to the loss. Revenues for the three-month period were also down year-on-year, falling 4% to KRW2.88 trillion, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 7% y-o-y to KRW750.4 billion. KT’s fixed line subscriber base fell to 19.9 million, a drop of approximately 750,000 over three months.

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Entry filed under: Asia, Financial, Mobile Industry News, Mobile Network Operator, Mobile News, SK Telecom, South Korea, Wireless Industry News, Wireless News. Tags: , , , , , , , , .

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