hanarotelecom's 2Q net income turned positive in 2 yearsTuesday, August 7th, 2007
- Record-high quarterly revenues of KRW 461.7 billion
- Operating income up 57.1% QoQ at KRW 19.4 billion, with KRW 2.1 billion of net income
- Net adds of 32,000 subscribers in broadband and 66,000 subscribers in voice
hanarotelecom incorporated (Representative Director: Byung-Moo Park, www.hanaro.com), Korea’s leading integrated telecommunications company, announced on Aug. 7 in its earnings presentation for the 2nd quarter of 2007 that the Company achieved the highest-ever quarterly revenues of KRW 461.7 billion, operating income of KRW 19.4 billion, and net income of KRW 2.1 billion, which turned positive in 2 years.
Hanaro explained that its revenues and operating income increased by 2.4% and 57.1%, respectively, from the previous quarter, owing to robust growth across all business segments including broadband, voice and corporate business. The Company added that EBITDA increased 2.5% to KRW 143.5 billion owing to revenue growth and the bundling effect.
The Company also stated that revenues, operating income and EBITDA increased by 7.7%, 159.2%, and 8.1%, respectively, year on year, showing a continuous upward trend.
The Company added that strong subscriber growth continued, with broadband net adds of 32,000 and voice net adds of 66,000 in the 2nd quarter, backed by marketing activities focused on bundled products. In addition, the Company explained that the number of 100Mbps broadband subscribers exceeded 1.25 million in the 2nd quarter as 100Mbps service coverage expanded to 9.8 million households as of the end of the 2nd quarter 2007 from 4.3 million as of the end of 2006.
Meanwhile, the number of hanaTV subscribers exceeded 500,000 and hanaTV revenues recorded KRW 7.7 billion in the 2nd quarter, more than double the revenues of the previous quarter. The company remarked that the profitability of hanaTV business is improving at a rapid pace as shown in an increase in PPV revenues from KRW 200 million to KRW 1 billion quarter on quarter.
Corporate business revenues increased 31% year on year as revenues of IDC and solution businesses showed a strong growth, increasing 115% year on year. IDC and solution businesses are expected to further strengthen their position as a new growth engine of the Company when convergence services such as Â¡®UC(Unified Communication)Â¡Â¯ are rolled out in the 2nd half of 2007.
Chief Financial Officer Janice Lee stated, Â¡°We were able to achieve the record-high quarterly revenues and a positive net income in the 2nd quarter of this year, owing to a stable growth in our core businesses and a remarkable revenue increase in our new growth engines such as hanaTV and corporate business”. ” We will channel our efforts into further strengthening the growth engine businesses and effective marketing campaigns focused on bundled products to mark the year 2007 as the very first year of making profit”, she added.
Link: Hanaro Telecom, Inc