LG Dacom reports 53 pct rise in Q1 net

(ATTN: ADDS stock price in 4th para; details in last two paras)
SEOUL, April 30 (Yonhap) -- LG Dacom Corp., a South Korean fixed-line and
Internet operator, said Thursday that its first-quarter net earnings rose 53
percent from a year earlier due to increased sales.
Net income stood at 55 billion won (US$41.6 million) in the January-March period,
compared with 36 billion won a year ago, LG Dacom said in a regulatory filing.
Sales rose 16 percent on-year to 432.7 billion won and operating profit climbed
28 percent to 71.4 billion won, it said.
Shares of LG Dacom closed at 19,650 won on the main bourse, up 3.97 percent from
the previous session.
The rise in the company's bottom line was attributed largely to the growth in
sales of its Internet-based phone services.
As of February, LG Dacom had 1.32 million Internet phone subscribers, according
to market watchers. LG Dacom is a unit of LG Group, one of South Korea's leading
conglomerates.
LG Dacom officials acknowledged that the company is in talks with its Internet
service unit LG Powercom Corp. over a possible merger of two companies.
"It is desirable for the two companies to merge," said Sung Ki-sup, chief
financial officer for the company, in a conference call with analysts. "However,
nothing has been decided yet."
ygkim@yna.co.kr
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