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The three telecommunications companies posted the largest operating profit since the opening of the LTE era in the first quarter. The marketing cost competition, which is taken and stolen to attract subscribers in the past, has been stabilized recently. In addition to the new business, it also helped to diversify profitability in addition to the wired and wireless telecommunications business.

The total operating profit of the first quarter, which was announced by the three telecommunications companies on the 13th, was KRW 1.3 trillion.

This figure exceeded 200 billion won from the first quarter of 2012, which was the highest since the introduction of LTE. The quarterly operating profit, followed by a relatively recent recent in the third quarter of last year, is 1.14 trillion won.

The telecommunications industry’s profitability has deteriorated since the measures to reduce the burden of telecommunications costs since the beginning of the government, but since last year, the company has grown again since the total operating profit of three trillion won companies.

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■ KT, overwhelming profitability record

In particular, KT’s propaganda is the most noticeable in the first quarter’s performance. The dominant evaluation is that KT’s quarterly earnings have increased profitability in the telecommunications industry.

KT’s 1Q operating profit included one -off revenue from the sale of the Mapo Service Center assets. However, even though the expenses of 70 billion won were excluded, the company recorded operating profit of KRW 66.6 billion, surpassing the outlook of the securities market, which was around 500 billion won.

SK Telecom is also an earnings surprise. SK Telecom recorded operating profit of 432.4 billion won based on consolidated operating profit, like KT, greatly exceeded the outlook for securities firms.

Only LG Uplus was a bit slow. The overall business maintained its growth, but it changed at the time of the launch of the terminal, recording an operating profit of W261.2bn, down 5.2% due to the decrease in terminal margins due to the base effect.

■ Reduced marketing costs

The reason for the improvement of operating profit is the marketing cost control.

In the early stages of commercialization of 5G communications, marketing competition was created to attract some subscribers, but in recent years, the market stabilization has been strong. Nevertheless, according to the current accounting criteria, marketing costs are divided not only during the time of execution, but also divided during the subscriber maintenance period.

In other words, as the execution of marketing costs began to resolve the past marketing costs, it is possible to produce quarterly results that reflect the marketing stabilization trend as much as possible.

In addition to new businesses and wired and wireless telecommunications, businesses also helped to improve profitability.

For example, all three companies have begun to make noticeable profits in the IDC field among the telecommunications -based businesses, and IPTV has continued to increase commission revenue due to the expansion of subscribers. In the case of KT, financial group companies such as BC Card and K -Bank, which are composed of consolidated standards, and contents group companies attracted the performance.

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