Hanaro Successfully Achieves a Turnaround, Posting Net Income and Record-High Revenues for 2007Friday, February 22nd, 2008
- Hanaro achieved a turnaround, recording revenues of KRW 1,868.3 billion and net income of KRW 7.2 billion
- Operating income jumped 162% YoY to KRW 80.9 billion
- hanaTV posted revenues of KRW 4.7 billion, strengthening the position as a leader in IPTV
SEOUL, South Korea — hanarotelecom incorporated (KOSDAQ: 033630) (‘Hanaro’ or the ‘Company’), Korea’s leading integrated telecommunications company, announced on February 22, 2008 that the Company successfully achieved a turnaround, posting record-high revenues of KRW 1,868.3 billion, operating income of KRW 80.9 billion and net income of KRW 7.2 billion for the year 2007.
The Company explained that its earnings improved significantly as the full-year revenues rose 8.4% YoY on the back of revenue growth in voice, hanaTV and corporate data while operating income jumped 162.4% YoY owing to the efficient management of sales and marketing expenses. In addition, EBITDA increased 8.2% YoY to KRW 579.6 billion.
In terms of earnings for 4Q07, revenues set a new record of KRW 488.8 billion while operating income and net income posted KRW 24.4 billion and KRW 7.3 billion, respectively.
hanaTV posted revenues of KRW 21 billion for 4Q07 and KRW 47 billion for the full year, and acquired 810,000 subscribers on a cumulative basis as of the end of 2007, strengthening the position as a leading player in IPTV.
As for corporate business, which is one of the Company’s new growth engines, revenues rose 27% YoY to KRW 476 billion for 2007, driven by robust growth in corporate data services such as IDC, leased line and NI/Solution. Hanaro stated that corporate business revenues accounted for 25% of the Company’s total revenues, up from 22% in 2006, reducing Hanaro’s dependency on the broadband business for revenue generation with the diversified business portfolio.
Hanaro plans to increase the number of 100Mbps subscribers this year to prepare for the launch of IPTV which will include real-time broadcasting services. The Company will also roll out more various bundling products in addition to hanaSet, which is offering up to 20% discount, in order to contribute to reducing households’ telecommunication expenses.
Hanaro recently launched hanaTV Season 2, offering personalized services with the enhanced user interface, and plans to offer differentiated contents and value-added services in order to improve the competitiveness of its IPTV services.
The Company will maintain double-digit subscriber growth in residential voice while focusing on IDC and leased line businesses and providing Unified Communication services to increase profitability.
Chief Financial Officer Janice Lee said, “As we achieved a turnaround by posting net income last year, we aim to maximize shareholder value through solid profit generation this year. Based on stabilized businesses, we will focus on new growth engines such as hanaTV and corporate business to achieve sustainable growth,” she added.