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SEOUL, Nov 1 Asia Pulse - LG Telecom Ltd., South Korea's smallest mobile phone operator, said Tuesday it posted a nearly 91 per cent jump in net income for the third quarter thanks to lower marketing costs and higher service sales.
However, analysts say LG Telecom's future earnings outlook is uncertain as market leader SK Telecom Co. (KSE:017670) plans to stop charging caller-identification service rates from next year. If LG Telecom follows suit, it would significantly erode the company's earnings.
LG Telecom's net profit in the three months ended Sept. 30 was 83.7 billion won (US$80.4 million), compared with 43.9 billion won a year ago, the company said in a regulatory filing.
Third-quarter operating profit, or sales before interest and taxes, rose 42 per cent from a year earlier to 97.2 billion won, LG Telecom said. Sales climbed 12.1 per cent to 883.8 billion won.
Compared with three months ago, net profit rose 61.5 per cent and sales gained 2.4 per cent, LG Telecom said.
At the end of September, the company's average revenue per user, a key indicator of a wireless operator's profitability, rose 5.6 per cent from a year ago to 38,910 won, LG ...