SEOUL: South Korea’s top fixed-line and Internet broadband operator KT Corp reported yesterday a one-third drop in quarterly profits as growth in the country’s once-torrid telecoms market begins to slow down.
KT’s core earnings, with no help from special gains this time, have come under pressure as customers migrate to mobile phones from fixed lines and growth in South Korea’s broadband Internet market – per capita, the world’s biggest – becomes increasingly slow.
For the three months to June 30, KT's net profit came in at 325.5 billion won (US$275.9mil), compared with a revised profit of 488.5 billion won a year ago and 960.6 billion won in the first quarter.
KT said its latest quarterly profit would have been higher if one-time stock transaction gains of 246 billion won in the second quarter last year were excluded.
Sales rose slightly to 2.95 trillion won in the April–June period, versus 2.86 trillion won a year ago.
Despite lacklustre top-line growth, KT’s operating profit was helped by cost cutting as well as reduced depreciation and lower capital expenditure. Its operating profit rose to 643.2 billion won for the latest quarter from 451.2 billion won a year ago. – Reuters