LG Telecom Q4 net profit up on lower marketing costs

SEOUL, Feb. 9 (Yonhap) -- LG Telecom Ltd., South Korea's smallest mobile carrier, said Tuesday its net profit rose 52 percent in the fourth quarter of last year from a year earlier thanks to lower marketing costs and improved wireless data sales.

Net profit reached 61.42 billion won (US$52.41 million) in the three months to
December, compared with 40.52 billion won for the year before, LG said in a
regulatory filing.
Sales rose 2 percent to 1.2 trillion won over the cited period, while operating
profit rose 5.2 percent to 74.99 billion won.
Shares of LG Telecom were trading at 8,260 won on the Seoul bourse as of 10:37
a.m., up 0.24 percent from Monday's close.
This year, LG Telecom absorbed its two affiliates -- fixed-line operator LG Dacom
Corp. and broadband Internet service provider LG Powercom Corp. -- to better
compete with bigger rivals SK Telecom Co. and KT Corp. by bundling broadband
Internet, wireless Internet and mobile phone services for its subscribers.
The on-year surge in profit derived from reduced marketing costs amid a cooldown
in competition, coupled with wireless data traffic growth, the company said.
The fourth-quarter wireless data revenue stood at 86.5 billion won, compared with
81.5 billion won from a year earlier as LG attracted more subscribers than it
expected and wireless data use grew, it said.
LG said it has set its sales target for this year at 8 trillion won, excluding
internal transaction fees, compared with 7.5 trillion won in 2009. The sales gain
will stem from the growth in wireless data sales and corporate sector business,
it added.
ylee@yna.co.kr
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