Hanarotelecom posts quarterly loss

Home > Business > Industry

print dictionary print

Hanarotelecom posts quarterly loss

Hanarotelecom Inc., Korea’s No. 2 broadband Internet operator, said yesterday that its first-quarter losses worsened amid intense competition.
Net losses reached 9.58 billion won ($10.35 million) during the January-March period, compared with a loss of 6.14 billion won a year earlier, the company said in a regulatory filing.
However, sales increased 4.3 percent year-on-year to 451.05 billion won. Operating profit fell 22.8 percent to 12.36 billion won, a turnaround from a 3.27 billion won loss three months earlier.
The first-quarter earnings were in line with a market consensus. Shares of Hanarotelecom fell 1.1 percent to 9,200 won in Seoul yesterday.
The company attributed the loss to increased marketing costs due to fierce competition in the broadband industry. According to company officials, Hanarotelecom spent 112 billion won on marketing in the first quarter, compared with 97.5 billion won reported a year earlier.
Competition in the broadband Internet market is getting stiff as smaller companies rush to offer service at a cheaper price. The company said it had to spend more to retain and lure customers.
The firm claims it attracted a net 34,000 subscribers to its broadband service in the quarter.
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)