KT, the second-largest mobile operator in South Korea, added 420,000 5G subscribers in the second quarter, but a jump in network investment costs took a heavy toll with its net profit falling 27.6 per cent year-on-year.
Profit decreased to KRW260 billion ($214 million), while operating revenue rose 5 per cent to KRW6.1 trillion. Wireless service revenue dipped 0.1 per cent to KRW1.64 trillion.
Including the 5G gains, the operator added 1.2 million mobile subs from Q2 2018 to end June with 21.5 million. LTE penetration rose by 4.1 percentage points to 82.6 per cent: ARPU fell 1.8 per cent to KRW31,745.
With its focus on increasing 5G coverage, capex for the first half of the year reached KRW1.35 trillion, which was 68 per cent of its entire capex of KRW1.98 trillion in 2018.
The operator said 82 per cent of 5G users signed up for unlimited data plans.
Media and content revenue increased 15.9 per cent to KRW670 billion, and wireless sales inched up 0.6 per cent to KRW1.19 trillion. Merchandise revenue grew 25.8 per cent to KRW1.01 trillion.
Last week, rival SK Telecom said it signed up more than half a million 5G subs in the quarter.Subscribe to our daily newsletter Back