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KT swings to net profit in FY15 on cost savings

29 Jan 2016

South Korea’s KT Corp has published its financial results for the year ended 31 December 2015, revealing a swing from the net loss of KRW966.2 billion (USD869.6 million) recorded a year earlier to a net profit of KRW631.3 million.

Operating revenue, meanwhile, totalled KRW22.281 trillion, roughly flat against the KRW22.311 trillion recorded in FY14, with a 2.4% increase in service revenue – to KRW19.514 trillion – failing to offset an almost 15% drop in turnover from merchandise, which fell to KRW2.767 trillion. Operating income in the twelve-month period stood at KRW1.293 trillion, up from an operating loss of KRW406.6 billion a year earlier, while EBITDA for FY15 amounted to KRW4.632 trillion, representing a 58.7% increase on the KRW2.919 trillion reported in FY14. The operating income improvement was driven, KT said, by ‘strengthen[ing] the core business competitiveness and cost saving improvements’. Capital expenditures in 2015 were KRW2.397 trillion (FY14: KRW2.514 trillion), of which the bulk – KRW1.316 trillion – was spent on the company’s access network, with KRW492 billion invested in its backbone network.

In operational terms, at the end of December 2015 KT had a mobile subscriber base of 18.038 million, up from 17.300 million year-on-year, while the number of customers signed up to its 4G services also continued to climb, reaching 12.832 million, compared to 10.780 million at end-December 2014. As such, 4G accesses represented 71.1% of the company’s total wireless subscriber base at the end of last year, compared with 62.3% twelve months previously. Traditional fixed voice accesses continued to decline, however, falling to 13.268 million at end-2015, from 13.849 million a year earlier, while VoIP telephony subscribers totalled 3.413 million, almost unchanged from 3.411 million. Fixed broadband accesses meanwhile numbered 8.328 million, representing a 2.4% year-on-year increase from the 8.129 million it had at end-2014.

South Korea, KT Corp

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