KTF’s results disappoint

The wireless arm of national PTO KT Corp, KTF Corp (KTF), has posted a disappointing set of fourth quarter financials, failing to meet expectations in the same week that rivals LG Telecom and SK Telecom boasted of better than expected growth. KTF reported a net profit of KRW109.6 billion (USD113.2 million) for the three months ended 31 December 2005, compared with KRW100.1 billion a year ago. The result fell short of analysts’ average forecast of a KRW134.8 billion profit. Quarterly sales rose 8% to KRW1.55 trillion, as its subscriber base expanded 5% and average revenue per user (ARPU) increased by 2.4%. Reuters’ analysts attributed the lower than expected growth to the perception that KTF is viewed as ‘neither a price nor quality leader’ in the same way as its rivals, and they expect KTF’s 2006 full year net profit to fall to KRW503.3 billion, from KRW547 billion in 2005.