SEOUL, South Korea KTF Co., South Korea's No. 2 mobile telecommunications service carrier, said Thursday (Jan. 26) its fiscal 2005 net profit from its service sector almost doubled on a yearly basis to 547.0 billion won ($563.9 million), due to an increase in the number of subscribers.
In a regulatory filing. KTF said the yearly net income rose 92.7 percent rise over 283.9 billion won ($292.7 million) in 2004. Its fourth-quarter net profit of its service field also increased 9.5 percent to 109.6 billion won from a year earlier, but down 15.7 percent sequentially.
Service revenue for 2005 reached 5.01 trillion won ($5.16 billion), a 9.1 percent rise over 4.59 trillion won in 2004, but handset revenue fell 16.0 percent to 1.04 trillion won, according to the company. It declined to give annual and quarterly profits in the handset business.
KTF said it attracted about 570,000 new subscribers last year, bringing the number registered with its mobile service arena to 12.3 million as of end-2005. It added that an increase in the average revenue per user also boosted its business.
KTF’s subscription numbers translated to a 32.09-percent market share-- down slightly from the previous year amidst stiff competition.
The other two domestic mobile service carriers, SK Telecom and LG TeleCom, hold 50.94 and 16.98 percent market shares with 53 million and 6.51 million customers, respectively. About 38.34 million of South Korea’s 48.5-million population are cell phone service users.
KTF targets to a 4-percent yearly hike in the service revenue this year by attracting some 400,000 more subscribers. It added that it has earmarked 1.1 trillion won for capital investment, with 510 billion won to gear up the high-speed downlink packet access (HSDPA) business.