KT swings to Q4 loss on stalling sales, costs

SEOUL, Jan. 23 (Yonhap) -- KT Corp., South Korea's top fixed-line and Internet service provider, said Friday it swung to a quarterly loss in the final quarter of 2008, hit by stalling sales and higher debt costs.

KT lost 26.6 billion won (US$19.4 million) in the October-December period,
compared with a profit of 107.6 billion won a year earlier, the company said in a
statement.
Sales fell 4 percent to 2.88 trillion won and operating profit plunged 55 percent
to 83.6 billion won, it said.
Shares of KT closed 1.2 percent down at 41,000 won on the Seoul bourse.
KT's bottom line was badly hit by the rising costs of its foreign currency debts
as the local currency weakened 32 percent against the U.S. dollar.
In a separate filing, KT said it plans to pay 1,120 won per share in 2008
dividends.
As the nation's telecom market becomes increasingly saturated, companies are
trying to promote combined fixed and mobile services to cut costs and woo
customers from rivals.
This week, KT announced a plan to merge with its wireless unit KTF Co. The plan
is subject to approval by the telecom regulator and shareholders.
South Korea is one of the world's most wired nations, with more than two-thirds
of homes connected to high-speed Internet and more than nine out of 10 people
owning a mobile phone.
ygkim@yna.co.kr
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