- Tiffany Profit Higher Than Expected; Raises Outlook
- Deere Reports Quarterly Net Loss, Revenue Falls
- Earnings Roundup: Nov. 25
- TiVo Reports Quarterly Loss but Matches Forecasts
- Heinz, Hormel Optimistic About Sales in 2010
- Earnings Roundup: Nov. 24
- Analog Devices Results Beat Expectations; Shares Rise
- Hewlett-Packard Profit Rises, Matches Guidance
- Tyson Food Profit Beats Estimates
- Earnings Roundup: Nov. 23
- US Markets Bracing for Selloff on Dubai Debt Worries
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- US Dollar Falls to 14-Year Low Against the Yen
- UK's Darling to Downgrade 2009 Growth Forecast
- US Companies Already Moving on Curbing Emissions
- Fannie Mae to Tighten Lending Standards: Report
- Investing in Good Karma – and Making a Profit
- Retailers Should Believe in Christmas Miracles
- Bankruptcies Jump, Hitting Highest Level in Four Years
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
MOST SHARED
- Kuoni CEO Sees Recovery in Travel Sector
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- Gold Retreats from Record High as Dollar Rebounds
- China Unveils Carbon Target Ahead of Copenhagen
- Great Britain, No Longer That Great: Investor
- Euro Shares Record Biggest Drop in 7 Months
- Fannie Mae to Tighten Lending Standards: Report
- US Markets Bracing for Selloff On Worries About Dubai's Debt
- UK's Darling to Downgrade 2009 Growth Forecast
- No Thanksgiving Rest for Retailers in Sales Race
Text Size 
KTF, South Korea's No. 2 mobile operator, reported a 37% drop in quarterly profit on Wednesday due to higher marketing costs to attract subscribers for its high-speed mobile
service.
KTF is aggressively marketing its high speed downlink packet access (HSDPA) service, launched nationwide in March, hoping video calls and other "third-generation" mobile services on the faster network will help it eventually take on leader SK Telecom.
Analysts expect earnings to improve in the second half as operators are likely to rein in marketing costs, but most remain cautious about the short-term impact on sales from 3G services.
KTF, which has 32% of South Korea's mobile market, posted a 51.1 billion won (US$55.9 million) net profit in the quarter to June, slightly below a forecast for a 58.6 billion won profit from Reuters Estimates.
The result compares with an 80.6 billion won profit a year earlier and 77.1 billion won earned in the previous quarter. Revenue rose 10% to 1.8 trillion won, in line with a 1.81 trillion won consensus forecast.
Mostly due to spending linked to 3G services, KTF saw marketing costs rising 35% from a year ago to 412 billion won. The company's subscriber base was 13.5 million at the end of June, 7 percent higher than a year earlier.
The unit of the country's top fixed-line company KT Corp. is forecast to earn 344 billion won in 2007, down from 412 billion won last year, according to Reuters Estimates.
Shares in KTF, in which Japan's NTT DoCoMo has a 10% stake, rose 8.2% in the second quarter, lagging the KOSPI's 20% gain.
Print
Email
- What you need to know.
- Ever wished your cab driver would stop nattering and just get to where you're going? Well that moment is near(er).
- Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
Data is a real-time snapshot *Data is delayed at least 15 minutes