Posts filed under ‘KTF’
Six operators will launch mobile phones based on the LiMo operating system this year, announced the LiMo Foundation, an industry group promoting Linux software for mobile services. The operators planning LiMo devices include NTT Docomo, Orange, SK Telecom, Telefonica, Verizon Wireless and Vodafone. Further active operator participants in the LiMo Foundation include KTF, SFR, Softbank Mobile, Swisscom and Telecom Italia. To date 33 commercial handset models have been certified as LiMo Compliant, of which 10 will be on display at the Mobile World Congress by NEC and Panasonic. LG and Samsung will also show new prototype models at MWC in Barcelona.
The LiMo Foundation also announced that all technologies specified for the R2 release of the LiMo Platform have been contributed on time, and LiMo members are currently introducing reference implementations for devices. The LiMo Reference Implementations will include code specified within both LiMo Platform R1 and LiMo Platform R2. This code includes source code contributions from members as well as components originating from open source communities. LiMo Reference Implementation contributors include Access, Azingo, LG Electronics, Purple Labs and Samsung Electronics. The latest technologies in the LiMo Platform include support for features such as advanced multimedia, location-based services, device management and enhanced security. The LiMo Foundation also announced its endorsement of the OMTP Bondi specification, which future LiMo handsets using a web runtime will support for widgets.
South Korean mobile operator KT Freetel Corp (KFT) has reported its financial results for the three months ended 31 December 2008, reporting its largest profit increase in more than three years. Net income for the three-month period rose to KRW101.9 billion (USD73.6 million), up 92% year-on-year. KTF attributed the impressive result to a lessening of promotional expenses as completion in the wireless sector eased. Revenue for the three-month period also rose, climbing 4.5% y-o-y to KRW1.53 trillion, while revenue for the full year was up 7.4% at KRW5.98 trillion. Earnings before interest, tax, depreciation and amortisation rose by 19.9% compared to the same time a year earlier. KTF has said it expects the growth in earnings to continue in 2009 as spending on handset subsidies and incentives decreases, following efforts to lock new customers into longer terms contracts. It has said that approximately 37% of its customer base is now locked into contracts. It reported customer additions of 1.46 million over the final quarter of the year, bringing its total to 14.37 million.
KTF, Korea’s second-biggest mobile carrier, said Wednesday its fourth-quarter earnings almost doubled from a year earlier thanks largely to reduced marketing costs.
Net income stood at 101.9 billion won (US$73.7 million) in the October-December period, compared with 53.1 billion won a year earlier, the company said in a regulatory filing. The bottom line was also up 38.5 percent from three months earlier. Sales rose 0.4 percent on-year to 1.95 trillion won and operating profit soared 60.9 percent to 207.7 billion won, it said.
For all of 2008, however, net profit tumbled 32.6 percent on-year to 164.6 billion won due to increased marketing expenses and investment. Sales climbed 14.4 percent to 8.35 trillion won with operating income rising 3.1 percent to 454.4 billion won. Shares of KTF rose 0.6 percent to 30,150 won as of 2:13 p.m. on the Seoul bourse.
KTF attributed the improved fourth-quarter net to lower marketing costs. The company said its marketing costs fell 8 percent on-year to 394.7 billion won last quarter.
As of end-December, KTF had 14.4 million customers, up 4.7 percent from a year earlier. The company painted a gloomy outlook for this year, saying sales will remain sluggish due to weak demand and severe competition.
As the nation’s telecom market becomes increasingly saturated, companies are trying to promote combined fixed and mobile services to cut costs and woo customers from rivals.
Last week, KTF announced a plan to merge with its parent company KT, which is South Korea’s top fixed-line and Internet service provider. The plan is subject to approval by the telecom regulator and shareholders. South Korea boasts of a high mobile phone penetration rate with more than nine out of 10 people owning a cellular phone.
According to Reuters, South Korean fixed line and broadband operator KT Corp (KT) has announced it will merge with mobile operator KTF Corp. The announcement comes after rumours of a tie-up last week, with the board of KT approving the merger yesterday. As KT will absorb the mobile operator it has been reported that KTF shareholders will receive 0.7192335 of a KT share for every KTF share they own. KT has also said it will sell USD253 million bonds exchangeable into its stocks to NTT DoCoMo as part of the merger plan, with the Japanese firm set to transfer 60% of its holding in KTF to KT. The merger still needs to gain approval from the government before it can go ahead, with the Korean Communications Commission expected to approve the merger by April 2009.