Korean mobile operator KT Freetel (KTF) saw its 2007 net income drop 40.7 percent on higher marketing costs as the company was gaining more subscribers and more 3G customers. Subscriber acquisition costs almost doubled year-on-year due to substantial increase of sign-ups and 3G migration, the company said. Total marketing costs climbed 40.9 percent during the year. In the fourth quarter, net income dropped to KRW 53.1 billion versus KRW 106.6 billion in Q4 2006. Net income for the full year stood at KRW 244.1 billion, significantly down from a net income of KRW 411.7 billion the year before. Fourth quarter revenues went up to KRW 1.9 billion from KRW 1.3 trillion in the year-ago quarter. And revenues for the full year rose 12.1 percent to KRW 7.3 billion. Service revenues grew to KRW 1.5 trillion in the fourth quarter, boosted by VAS, roaming and data revenues. EBITDA in the fourth quarter fell 12.2 percent to KRW 413.7 billion. Fourth quarter capex was KRW 261.6 billion, up 32 percent from the third quarter and full year capex totalled KRW 1.2 trillion, down 8.8 percent year-on-year due to the decreased investment in WCDMA. KTF ended Q4 with 13.72 million mobile subscribers, compared with 12.91 million at the end of 2006.
Wireless Federation » KTF’s net income drops 41 percent as SAC doubles (South Korea)
KTF’s net income drops 41 percent as SAC doubles (South Korea)
- January 24th, 2008
- 12:37 pm
