KT profit slumps 41% in Q3

Dylan Bushell-Embling
telecomasia.net
South Korea's KT reported a 41% slump in Q3 net profit to 255.7 billion won ($230 million), as pricing initiatives including a recent tariff cut bit into earnings.
 
While market watchers had been expecting a profit decline, the impact was worse than they had been anticipating, Bloomberg reported – a poll of analysts shows an average profit forecast of 316.1 billion won.
 
Revenue fell 6.2%, and mobile revenue shrunk 21%, as a result of discounts and other initiatives to lure in more smartphone users. 
 
KT also recently ceded to pressure from regulators to cut its base tariffs for all subscribers by 1,000 won, as an anti-inflationary measure.
 
Rival SK Telecom also agreed to implement the rate cut, and in October reported an 18% slump in its own profit for the third quarter.
 
KT has also revealed that its smartphone subscriber-base grew to 6.3 million as of the end of the quarter, more than triple the 1.7 million users from a year ago, suggesting its smartphone strategy is showing signs of paying off.

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