Telecom operator KT said on Aug. 7 its net profit sank 33.4 percent in the second quarter from a year earlier as it ramped up spending on its 5G network and marketing.
The South Korean telecom provider posted 139.7 billion won ($115 million) in net profit in the April-June period, compared with 209.9 billion won a year ago.
Its operating profit dipped 37.9 percent on-year to 191.1 billion won, while sales rose 6.4 percent to 4.5 trillion won in the three-month period, the firm said in a financial statement.
KT attributed its weak quarterly results to increased spending and marketing costs for its 5G service since its launch in early April.
“Although the 5G service expanded overall sales since its launch in April, increased investment in the 5G network and marketing reduced profits,” KT said in a release.
Its wireless division’s revenue edged down 0.5 percent on-year to 1.7 trillion won in the three-month period, while sales from its media content business jumped 15.9 percent to 68.9 billion won on the back of robust growth in IPTV subscribers.
KT said it attracted 420,000 5G customers as of June, which fell below SK Telecom’s 530,000.
By Ram Garikipati and newswires (email@example.com)