Reuters reports that South Korean operator KT recorded a net profit of KRW420.6 billion (US$394.1 million) for the quarter to end-June 2011, compared with KRW419.5 billion in the prior year, on revenue of KRW5.3 trillion, up from KRW4.9 trillion. According to Bloomberg, the company saw increased operating expenses due to the higher cost of smartphone purchases, while mobile call revenue fell because of discounts.