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(2nd LD) KT's Q3 net up 8 pct on cost reduction

All News 10:12 November 06, 2020

(ATTN: RECASTS throughout with details in paras 3, 8-13)

SEOUL, Nov. 6 (Yonhap) -- KT Corp., a major South Korean telecom operator, said Friday its net income rose 7.9 percent in the third quarter from a year earlier due to cost reduction.

Net income reached 230.1 billion won (US$204 million) in the July-September period, compared with a profit of 213.3 billion won the same quarter a year earlier, according to a regulatory filing.

KT said it saved some costs involving its hardware infrastructure for wireless services in the third quarter, which boosted its bottom line.

(2nd LD) KT's Q3 net up 8 pct on cost reduction - 1

Sales fell 3.4 percent to 6 trillion won over the cited period, while operating income stood at 292.4 billion won, down 6.4 percent over the cited period.

KT blamed its disappointing performance in sales and operating profit on the coronavirus pandemic.

Its major non-telecom units saw a decrease in sales in the third quarter, with the carrier's satellite broadcasting unit KT Skylife Co. posting a 3.1 percent decline in sales to 176.6 billion won in the July-September period.

Sales in KT's real estate unit, KT estate, tumbled 39.4 percent to 76.2 billion won over the cited period.

KT said that increased labor costs also chipped away at its third quarter operating profit.

The telecom operator's wireless business showed little growth in the quarter, with sales standing at 1.7 trillion won, up 0.9 percent from a year earlier.

KT's 5G subscribers reached 2.8 million as of the July-September period, accounting for around 20 percent of the carrier's total mobile phone subscribers.

The carrier's internet protocol TV (IPTV) business, however, reported robust growth as sales rose 11.9 percent on-year to 459.3 billion won thanks to a boost in subscribers.

KT said it had 8.69 million IPTV users as of the third quarter, up 5.6 percent from the same quarter a year earlier.

The company announced in a separate regulatory filing that it will buy back 300 billion won worth of its shares over a one-year period starting Friday to improve shareholder value.


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