By Kim Yoo-chul
KT, the first vendor of iPhones here, Friday reported in a regulatory filing that the operating profit during the January to March period was 726 billion won.
Net profit soared 85 percent to 555 billion won and quarterly sales also increased by 6 percent to 5.3 trillion won.
``The first quarter was impressive and we are expecting the second quarter to be better than the first considering increasing wireless data-related revenue,’’ said KT spokeswoman Kim Yoon-jeong.
KT has secured 3.83 million smartphone subscribers as of the end of March. KT has raised the target number of subscribers to 8 million, up from 6.5 million this year.
KT invested 688.9 billion won including 363.1 billion won in wireless-related businesses, a cut of 44.4 percent from the preceding quarter, the filing said.
KT announced the quarterly results based on a consolidated scheme under new accounting rules adopted this year.
However the nation’s top-tier telecom firm is being asked to implement some visible measures to offset its falling fixed-line business for a more balanced corporate growth.
The nation’s second-biggest mobile carrier after SK Telecom, is also facing fiercer competition in the race for smartphones as SK Telecom began selling the iPhone in March ― an end to the exclusive partnership between KT and Apple for the popular device.
The revenue for KT’s fixed-line business was 654 billion won for the first quarter, a decrease by 19 percent year-on-year, and analysts say KT has no visible option but wireless-related revenue to offset the broadband unit’s poor performance.
Mobile average revenue per user (ARPU), a key barometer to gauge the profitability of telecom firms, declined mostly because of decreasing voice call sales.
``We are contacting various telecom companies outside the peninsula to move away from our heavy dependence on the local market,’’ said Kim.
KT said earlier that it had agreed to sell a 79.96 percent stake in its Russian unit, New Telecom Company, to Russian operator Vimpelcom for $346 million.
KT officials said the money earned from the sale would be used for investments in emerging countries such as those in the former Soviet bloc, Africa and South America to step up its efforts for global expansion.