KT Corp Q3 profit rises 46 percent

KT Corp Q3 profit rises 46 percent

Summary: South Korean telco gets boost from non-telecoms affiliates, offsetting higher network-upgrade spending and marketing costs.

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KT Corporation (KT), South Korea's largest fixed-line operator and second-largest mobile carrier by subscribers, has booked better than expected results for its third quarter.

For the three months ended September, the telco posted a 46 percent rise in its net profit to 372.3 billion won (US$341 million). The result was better than the market estimates of 207.5 billion won (US$189.96 million), according to Dow Jones newswire. Revenues were 6.52 trillion won (US$5.97 billion), up 30.6 percent.

The company saw stronger performances at its non-telecoms affiliates. This helped offset the higher network-upgrade spending and marketing costs for its ultra-fast network technology nationwide.

In its earnings announcement Monday, the telco saw finance and rental related income jump by over four times to 939.1 billion won (US$859.4 million) from a year ago. Merchandise revenue, which includes sales of handsets, grew 25 percent to 1.31 trillion won (US$1.2 billion)

Stronger performances from non-telecoms associates (source: KT Corp presentation slides)

South Korean telcos have been facing increasing margin pressures as they upgrade their networks and spend more to attract customers, noted Dow Jones.

Last month, KT announced a partnership with Japan's NTT Docomo to develop cross-border mobile payment offerings based on near-field communications, with the first service scheduled for the first half of 2013.

Topics: Tech Industry, Networking, Telcos

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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