Posts filed under ‘South Korea’
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.
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.