S.Korea's KT Q3 op profit falls on competition

SEOUL, Nov 3 - KT Corp <030200.KS>, South Korea's dominant fixed-line operator and No. 2 mobile carrier, reported on Tuesday a 12 percent fall in quarterly operating profit due to intensified competition in broadband and Internet telephony.

KT, which absorbed its mobile unit KTF in June, posted a 413.1 billion won ($348.5 million) operating profit in the third quarter to September, slightly below a consensus forecast of 437.6 billion won profit from Thomson Reuters I/B/E/S.

That compared with a year-ago operating profit of 467.8 billion won calculated on a merged basis, according to KT.

Net profit came at 351.4 billion won, higher than a forecast of 277.8 billion won and up 80 percent from a year earlier when KT was hit by foreign exchange related lossses.

With revenue growth stalling in the saturated home market, South Korean telecom operators are pressured by the heavy cost of attracting and retaining users amid public pressure to lower mobile tariffs.

KT shares have risen 3 percent so far this year through Monday, lagging the wider market's <.KS11> 39 percent gain. ($1=1185.2 Won)