(Full text of this release can be found at http://www.asianet.com.au)
SEOUL, South Korea and NEW YORK, Aug. 31 /PRNewswire Asia-FirstCall/
Korea Thrunet Co., Ltd. (Nasdaq: KOREA) ("Korea Thrunet"), a major provider of broadband Internet-access services and enterprise network services in Korea, today announced the results of its operations for the second quarter ending June 30, 2002. All 2Q02 figures are unaudited and prepared in accordance with generally accepted accounting principles in Korea.
2Q02 Financial Results:
Quarter-over-Quarter and Year-over-Year Comparison
Highlights
* Total revenues decreased 1.6% QoQ and increased 24.9% YoY to
KRW 143.2 billion.
* Revenues from Broadband Internet Access Services decreased 2.0% QoQ due to the discontinuation of services for delinquent subscribers, but increased 25.6% YoY to KRW 110.9 billion.
* Revenues from Enterprise Network Services was at the same level of 1Q02, and increased 29.9% YoY to KRW 32.2 billion.
* EBITDA margin improved to a positive 33.6% from a positive EBITDA margin of 33.0% in 1Q02, and from a positive 6.5% EBITDA margin in 2Q01.
* The Company has continued to record a positive operating income of
KRW 5.0 billion in 2Q02 for the most recent two consecutive quarters.
Main Topics Discussed in This Release
* Business Outlook
* Operating Highlights
* 2Q02 Financial Results: Quarter-over-Quarter and Year-over-Year
Comparison
The statements included in this news release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Korea Thrunet cautions readers that forward-looking statements are based on the Company's current expectations and involve a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. Information as to those factors that could cause actual results to vary can be found in Korea Thrunet's filings with the United States Securities and Exchange Commission.
Business Outlook
Corporate Restructuring Plans Being on Track as Scheduled
Since the second half of 2001, Korea Thrunet has been successfully implementing a series of corporate restructuring plans. In 2001, in aiming to focus on its broadband Internet access and enterprise network business, the Company sold such assets as equity stakes in a number of system operators and real estate holdings.
Starting in 2Q 2002, the Company entered a new phase of restructuring plans to focus on the broadband Internet access business in order to enhance Thrunet's operating efficiency and improve the Company's financial structure. As a part of the newly staged restructuring plans, the Company entered into an asset transfer agreement with SK Global, Co., Ltd. ("SKG") on July 5, 2002 to transfer to SKG a portion of its assets relating to its domestic leased line business, including its local fiber optic network and related equipment. Through this asset transfer, the Company plans to raise KRW 355.6 billion. The contract is expected to close within the third quarter of 2002.
The Company completed the sale of a portion of its own HFC network, including related equipment used with the HFC Network, to Powercomm Corporation ("Powercomm") on August 6, 2002. The total sale price for the assets transferred to Powercomm was KRW 45 billion. Additionally, the Company sold its headquarter building in Seoul to Carlyle Asia Real Estate LLC at KRW 38 billion on August 16, 2002. In total, the Company plans to raise approximately KRW 438.6 billion, of which it has already raised KRW 83.0 billion to date through the sale of its HFC network and headquarter building.
Rationale for Restructuring Plan
The leased line and broadband Internet access markets in Korea are highly competitive. In the leased line market, KT Corporation ("KT") and Powercomm are the dominant players, with over 75% of the market share. Other players, including Korea Thrunet, each maintain less than 10% of the market share. With KT and Powercomm monopolizing the leased line market and, hence leaving insufficient growth potential for other players, the Company has decided to focus more greatly on its broadband Internet access business that has higher growth potential. Given this competitive market environment, the Company therefore has needed to optimize the utilization of its assets and improve its operating efficiency.
The restructuring plan should also enable Thrunet to restore stability to its financial structure, especially in terms of the balance sheet, by lowering its debt level and enhancing its cash liquidity. Facilities-based telecommunications services companies typically require large investments in the initial stage of the business. Over the past couple of years, the Company had to rely heavily on debt financing for investment due to unfavorable conditions of the stock market. This has negatively impacted the balance sheet of the Company, even though the Company has been showing improvements in profitability by recording positive EBITDA in 4Q 2000 and positive operating income in 1Q 2002.
Following Completion of Restructuring Plans
Korea Thrunet plans to achieve the following two objectives with the successful completion of its assets sales. The first objective of the Company's restructuring plans is to improve its financial structure by lowering its debt level, which would lead to a decrease in the total liabilities-to-total equity ratio. The Company expects to meet its debt services and debt repayment obligations due this year with a majority of proceeds from assets sales. In addition, Thrunet is also talking to its major creditors who are owed an aggregate amount of at least KRW 10 billion to convert their debt into equity. Thrunet is additionally seeking to raise foreign capital in the form of a private placement by the first half of 2003.
Secondly, Korea Thrunet's restructuring plan is designed to maximize its return on investment by focusing on its broadband Internet access business, which maintains a higher growth potential. In this regard, the Company plans to spend some portion of its proceeds from assets sales to further growth of its broadband Internet access business by strengthening sales and marketing and promotional efforts.
Participation in Dacom-Led Consortium to Bid for Powercomm Stakes
Korea Thrunet signed a Memorandum Of Understanding ("MOU") on August 27, 2002 with Dacom Corporation ("Dacom"), a major Korean fixed line telecommunications carrier, to participate in a Dacom-led consortium that is bidding for shares of Powercomm. Korea Electric Power Corporation ("KEPCO") is selling an initial 30% stake in Powercomm and the successful buyer will have an option to buy additional stakes, up to a total of 54%.
Thrunet plans to invest up to KRW10 billion through the Dacom-led consortium. The consortium anticipates that the stake for which it is bidding would give it a significant presence in the management of Powercomm. Thrunet believes that the consortium led by Dacom, a major provider of long-distance and leased line telecommunications services, and supported by Thrunet, a major provider of broadband Internet services, is in a strong position to win the bid for Powercomm shares. SOURCE Korea Thrunet Co., Ltd.
/CONTACT: In Korea - Yong S. Lee, Korea Thrunet Co., Ltd.
Investor Relations, +822-3488-8058
welcomecorp.thrunet.com;
or in U.S. - Jennifer Angell,
Thomson Financial Corporation, +1-212-807-5137,
jennifer.angelltfn.com/
ASIA PULSE 02-09 1820
Комментариев нет:
Отправить комментарий