SEOUL, South Korea KT Corp., South Korea's largest fixed-line and broadband Internet operator, said its second-quarter net income soared by more than 50 percent over the same quarter of 2005, when it was heavily fined by the government for unfair business practices in the domestic market.
In a regulatory filing, KT estimated its sales at 2.96 trillion won ($3.12 billion) in the June quarter, 1.2 percent down from 2.99 trillion won a year earlier, but up 2 percent from the first quarter's 2.90 trillion won.
Earnings from the broadband Internet service sector, comprising 23 percent of the total sales, helped the company sustain its business performance in the quarter, according to KT.
But the telecommunications giant said it is struggling against challenges from other local broadband service carriers and continued declines in its fixed-line subscription base.
KT said net income rose 52.9 percent year-on-year, to 342.6 billion won ($360.6 million), but fell 16.3 percent sequentially. Operating profits of 570.2 billion won jumped 68.1 percent year-over-year but declined 14.2 percent from the first quarter.
In the year-ago quarter, KT paid 116 billion won in penalties levied by the government's anti-trust watchdog Fair Trade Commission for involvement in price manipulation related with communications services.