KT's Q2 profit surges 184.5% after KTF merger

Dylan Bushell-Embling
10 Aug 2009
00:00

KT's Q2 profit surged 184.5% year-on-year, in the company's first result reflecting its merger with mobile unit KTF.

The company reported a Q2 net income of 456.1 billion won ($372.6 million) - also a 222.3% quarterly increase.

But revenue increased just 17.7% to year-on-year to 3.56 trillion won, and operating income declined 1.1% to 363.5 billion won.

Wireless revenue was 1.13 billion won – 31.7% of KT's total. Telephony revenue contributed 35% while internet revenue contributed 18.2%.

Due to the KTF merger, wireless operating revenue grew 164% to 1.32 trillion won, even while telephone, internet and data revenue fell by at least 5%.

KT also attributed its soaring profit to decreased forex losses as the global economy recovered, and a 20% reduction in marketing expenses.

But the reduced marketing spend came at a cost - subscriber net additions declined 26.5% to 165,000. KT now has 14.71 million wireless subscribers in total.

Likewise, wireless voice ARPU fell 3.4% - although data ARPU grew 4.6%.

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