Daum’s costs eat into profit

Daum Communications, the top Internet portal in Korea, said its third-quarter operating profit fell slightly in the third quarter because of an increase in its marketing costs and the cost of starting new services. Its operating profit in the quarter ending Sept. 30 was 10 billion won ($9 million), a 3.9 percent decline from the same period a year earlier. Ordinary profit was 9 billion won, a 90.9 percent drop from the same period last year. However, sales grew in the third quarter, to 49.4 billion won, an increase of 30.3 percent compared to the same period last year. The company didn’t release net income figures. Daum acquired Lycos from Spain’s Terra Networks SA for $105 million. The company said it issued 1.5 billion won’s worth of commercial paper, which was itemized as a cost in the third quarter. Beginning in the fourth quarter, Daum will offer search engines and enhance “Planet,” which provides personalized mini-home pages. It also will begin offering online music services in the fourth quarter. by Kim Ji-soo