Bitter Sweet Q307 Results For KT

October 2007 | Company Finance Alert

KT, South Korea's incumbent operator has been hit by poor demand for its fixed line services. The operator has reported on a 7.2% y-o-y fall in its operating profits to KRW400.4bn (US$440mn), while total sales dropped by 1.9% y-o-y to KRW2.95trn (US$3.2bn). Sales were negatively affected by fixed line revenues. Accounting for 35% of total revenues at KRW1.023trn, the number of fixed line subscribers fell by 1.3% y-o-y to 20.12mn. In response to this, the operator stated that the fall in fixed lines had resulted from a 'growing number of people shifting to mobile and moreover the nation's high-speed internet market nearly reaching saturation.'

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