By Telecom Lead Team: KT, a mobile and Internet firm in
South Korea, has reported 8 percent increase in 2011 revenue at KRW 21,990
billion against KRW 20,339 billion in 2010.
For the full year of 2011, its net profit stood at KRW 1,442
billion as compared with KRW 1,338 billion in 2010, registering 7.8 percent
increase.
In Q4 2011, KT’s revenue increased 24.7 percent to KRW 6,379
billion from KRW 5114 billion in Q4 2010. KT reported 12.5 percent increase in
Q4 2011 net profit to KRW 210 billion ($188 million).
The carrier said that it spent an additional 110 billion won
to switch its second-generation networks to 4G service using LTE technology.
Total Capex of KT increased by 8.5 percent to KRW 3,319
billion in 2011 from KRW 3,057 billion. Out of this, wireless Capex increased
by 48 percent to KRW 1,607 billion, while wireline Capex decreased 21 percent
to KRW 1273 billion.
The company said Q4 2011 operating revenue increased
27.8 percent QoQ, due to inclusion of BC Card in the consolidated F/S and gains
from real estate sales through ABS.
In 2011, operating revenue increased 8.1 percent YoY due to
inclusion of BC Card and kt Skylife in the consolidated F/S.
Inclusion of BC Card in the consolidated F/S and 2G
migration expenses led Q4 2011 operating expenses to rise by 36.1 percent QoQ.
Rise in the D&A, cost of merchandise sold and addition
of kt Skylife caused 9.5 percent YoY increase.
Additional KRW 1,000 tariff discount and free SMS along with
the continued effect of revenue discount plan led to 7.7 percent QoQ decrease
in voice revenue.
Smartphone subscribers increased 43.4 percent YoY, recording
7.65mn as of end of FY2011, which represents 46 percent of total subscriber
base.
Interconnection revenue increased slightly QoQ due to rise
in the wireless service usage.
PSTN revenue was KRW 605.1 billion, representing a decrease
of 1.2 percent QoQ and 14.1 percent YoY, as PSTN subscriber decrease slowed
down.
PSTN line loss was 710K in 2011, which is 50 percent
alleviated, compared to the previous year.
Revenue improved 4.6 percent QoQ, led by continuous
subscriber base expansion.
As PSTN line loss declined, VoIP subscriber growth has also
slowed down.
Due to seasonality, international call service revenue fell,
resulting other revenue to decrease for QoQ and YoY.
With competitive network quality and bundling sales
increase, broadband subscribers recorded 7.82 million, which is a net addition
of 400k in 2011.
However, revenue fell by 3.9 percent YoY as discount
increased due to more long-term subscribers and higher bundling customers.
kt media business continues to sharpen competitive edge
around our distinctive hybrid OTS service. Revenue grew 25.6 percent QoQ and
66.3 percent YoY, as value-added service such as PPV and advertising revenue
increased.
The carrier’s fourth-quarter ARPU for wireless voice
services fell to 16,574 won from 22,457 won a year earlier, while that of its
wireless mobile data services increased to 12,252 won from 8,824 won.
The carrier expects to earn 20 trillion won in revenue in
2012, compared with 22 trillion won last year.
Additionally, KT said it is targeting capital expenditure of
3.5 trillion won this year, up from around 3.3 trillion won it spent last year,
to accelerate the deployment of the latest LTE network technology.
Recently KT selected Nokia Siemens Networks as one of its LTE
(4G) mobile broadband infrastructure and services vendors.
The operator plans to meet the fast growing demand for
mobile broadband and smartphone data services by re-farming its 1.8GHz band.
This will allow KT to offer its subscribers a superior, 4G, mobile broadband
experience by mid 2012.
editor@telecomlead.com
