By Kim Yoo-chul
Staff Reporter
The nation's telecom and Internet-related service provider SK Broadband is seeking a turnaround in profits in 2010, a top company executive said.
To realize the goal, the company plans to strengthen bundled product line-ups and wireless services and expand its share in the corporate clients-based segment, Choi Shin, CEO of the company, said.
"We are positive that SK Broadband will turn into the black territory from next year. Although I'm not sure about the exact timing for a major turnaround, our steady efforts in marketing, sales channels and network enhancement have been paying off,’’ Cho Shin said at a press conference marking the one-year anniversary since its corporate name change held at the Press Center, downtown Seoul, Tuesday.
SK Broadband, formerly Hanarotelecom, has been in the red for three straight quarters since September last year ― though expectations are that this will take a turn for the better at the end of this quarter.
In the second quarter of this year, it posted a net loss of 41.6 billion won, deeper than the 10.4-billion-won loss from a year ago, while its operating loss during the April-June period reached 20.4 billion won compared with 10.7-billion-won profit a year earlier.
"We are on the right track to boost profits and to meet growth potential. The past year was the time for us to solidify our business soundness," the top official said.
Cho clarified that his company will target corporate clients as SK Broadband has competitive edges in product mix-up and handling sales networks via a partnership with SK Telecom.
"We are engaged in detailed internal talks with SK Telecom for our corporate business. The situation is positive as SK Broadband has already constructed a solid alliance structure with SK Telecom. We will do more for the corporate market in 2010," Cho said.
When asked about detailed strategies for the stalling Internet TV business, Cho said the company will strengthen content-based product portfolios. "But we don't have any imminent plan to form strategic alliances or to strike an M&A deal."
Citing tougher circumstances in securing Internet TV subscribers such as channel sourcing and product coverage, Cho admitted sluggish performance. Despite the meager start, the company is scheduled to get 500,000 IPTV subscribers by the end of the year.
Some 700,000 subscribers are watching through IPTV. KT has the largest share of at 42 percent, followed by SK Broadband with 24 percent and LG Powercomm with 15.3 percent, according to company figures.
South Korea saw the number of broadband users exceed the 16-million mark in August. Some 96 percent of all households across the nation now have a broadband connection.
"We could reap profit if we slash the investment budget by 100 billion won. SK Broadband doesn't want to be grappled with a short-term profit. That will lead us to a slow death," he said.