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DACOM blames internet subsidiaries for Q4 losses

7 Feb 2003

South Korean long-distance telecoms carrier, DACOM Corporation, has posted a net loss of KRW3.7 billion (USD3 million) for the fourth quarter of 2002, compared to a net profit of KRW3.6 billion for the same period of 2001. The company said the loss could be attributed to poor performances from some of its internet subsidiaries, in particular DACOM Multimedia Internet (DMI) which saw an 8% fall in net income for the year, and DACOM Intelligence in Network (DiN) where net income dropped by a massive 70% due to an impairment loss of KRW3.4 billion and one-time bad debts of KRW3.1 billion. Despite the poor quarterly results, DACOM posted its first annual profit for three years, reporting a net income for the twelve month period of KRW23.8 billion, compared with a loss of KRW68 billion in 2001. Sales for the full year increased from KRW997 billion to KRW1.05 trillion with operating profit reaching KRW96 billion. DACOM had experienced losses since 2000 when it embarked on a re-organisation scheme aimed at stemming losses of high speed internet subscribers to rivals KT Corp and Hanaro Telecom. It acquired the nation’s second largest cable network operator, Powercomm, in December 2002 for KRW818 billion, a move which has increased its net debt by around 28%.

South Korea

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