KT’s fourth quarter results bolstered by one-off real estate sale

6 Feb 2012

South Korea’s KT Corp has released its financial results for the three-month period to end-December 2011, with additional revenues from a one-off real estate sale in the last quarter helping to offset year-on-year declines in turnover in most other sectors. For the operator’s last fiscal quarter of 2011 it posted total turnover of KRW6.38 trillion (USD5.7 billion), up almost 25% against the same period a year earlier on the back of a disposal gain of KRW295.8 billion from the real estate sell-off. Revenues from the operator’s fixed line voice and mobile services meanwhile fell when compared to the same period a year earlier. Despite a 2.3% annual increase in turnover from voice-over-internet protocol (VoIP) services, total revenues from fixed voice products dropped by 1.7% compared to 4Q10, with PSTN revenues slumping by 14.1% over the year. Further, while revenue from mobile data services in 4Q11 increased by 43.4% y-o-y, mobile voice turnover fell by 24.5%, with KT citing its KRW1,000 tariff discount and free SMS as one of the contributory factors for the decline. Overall, revenues from mobile services in 4Q11 were down 2.4% against the corresponding period in 2010. Fixed line broadband service revenues meanwhile dipped by 3.9% over the year, but thanks in part to a 66.3% y-o-y increase in revenue from its IPTV offering, overall internet revenues were up 2.3%. Net profit for the last three months of the year stood at KRW210.6 billion, up from KRW187.1 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) was down marginally (by 0.8%) at KRW1.03 trillion.

In operational terms, at the end of December 2011 KT’s total wireless subscriber base stood at 16.563 million, of which it claimed just 100,000 remained signed up to its second-generation services, with the remainder having moved on to its 3G tariffs. WiBro sign-ups meanwhile reached 744,000, almost double the 377,000 reported at the end of 2010, while fixed line broadband customer numbers totalled 7.823 million, up 5.4% y-o-y. PSTN accesses continued to decline, and at the end of 2011 KT’’s traditional fixed voice subscriber base stood at 15.929 million, down 4.2% from 16.635 million at end-2011, with the number of VoIP subscribers increasing by 18.6% over the year to reach 3.230 million.

South Korea, KT Corp