South Korea’s second largest fixed line and broadband internet services provider Hanaro Telecom posted profits of KRW40.7 billion (USD35.25 million) for the three months to 30 June 2004, up 61.24% on the previous quarter, and a massive 125.73% on the same period of 2003. The company also entered the black for the first time since it began commercial operations in April 1999, with a net income of KRW15.2 billion (USD13 million). Revenue for the second quarter reached KRW363.1 billion, up 5.43% on the year-ago period, while half-yearly revenues stood at KRW712.4 billion. The company attributed its strong performance to growth in its voice business and the overall improvement in operating efficiency, helped by a reduction in non-marketing expenses such as telecoms equipment lease expenses and interconnection fees. Hanaro generated net income of KRW9.8 billion for 1H04 against losses of KRW67.4 billion last time round, raising the likelihood of it achieving its first annual net profit since its launch.