TOKYO (08/09/2000) - Korea Telecom Corp. said Wednesday revenues and profits for the first half of 2000 were up strongly on the same period a year earlier thanks to significant growth in new business areas.
The company, South Korea's dominant telecommunications carrier, attributed strong growth in the Internet, data communications and fixed line to mobile interconnection businesses as largely responsible for the jump (see table below). Kornet, the company's Internet service provider unit, saw the strongest rate of growth, with revenues shooting up 328 percent to 178 billion won (US$159.6 million).
In total, thanks to the growing revenues from these and other new business areas and declining revenues in conventional voice services, new growth business revenue made up 49 percent of all revenue in the first half of this year, up from 39 percent a year earlier.
Total revenue was 5.1 trillion won, up 8.5 percent on the year, while operating profit increased 214.4 percent to 877 billion won. Pretax profit shot up 514 percent to 787 billion won and net profit was 464 percent higher at 596 billion won.
For the remainder of the year, Korea Telecom said it plans to focus on these new business areas.
ADSL (Asymmetric Digital Subscriber Line) is one area in particular that will receive such attention. Following a successful launch which has seen the carrier rise from number three to number one player in just over six months, Korea Telecom said it plans to increase capital expenditure on ADSL from 370 billion won to 740 billion won during the rest of this year. Subcriptions to its Megapass ADSL service jumped from 11,925 at the end of the year to 425,921 at the end of July.
Korea Telecom Corp. First Half 2000 Financial Highlights, all figures in billions of won (Source: Korea Telecom) H1 2000 H1 1999 Percentage changeRevenue 5,094 4,694 +8.5%Operating Profit 877 279 +214.4%Pretax Profit 787 128 +514.1%Net Profit 596 106 +464.0% Revenue Breakdown by Business Sector, all figures in billions of won (Source:
H1 2000 H1 1999 Percentage change
Local service 1,653 1,754 -5.8%
Domestic long distance 628 736 -14.7%
International service 306 350 -12.7%
Interconnection (fixed to mobile) 1,434 1,194 +20.1%Data communication 770 503 +53.1%Other 302 156 +93.6%Total Revenue 5,094 4,694 +8.5%Korea Telecom, in Seoul, can be contacted at +82-31-727-0940, or found online at http://www.kt.co.kr/.