[Click eStock] "LG HelloVision, Revenue and Operating Profit Improving with Expansion of Budget Phone Subscribers"

[Asia Economy Reporter Lee Jung-yoon] NH Investment & Securities maintained its hold rating and target price of 6,800 KRW on LG HelloVision on the 21st, stating that although the sales growth rate is not high due to structural characteristics, the business environment is recovering.

LG HelloVision's sales for the first quarter of this year are expected to reach 275.8 billion KRW, up 7.2% year-on-year, and operating profit is projected to increase by 26.6% to 12.8 billion KRW. The operating profit is analyzed to meet the consensus estimates.

Jaemin Ahn, a researcher at NH Investment & Securities, said, "Since the acquisition by LG Uplus, the operating profit margin has been gradually improving, and with the expansion of MVNO (Mobile Virtual Network Operator) subscribers, both sales and operating profit are improving. As competition in the paid broadcasting market, including IPTV (Internet TV), stabilizes, the decline in CATV (Cable TV) subscribers is slowing, and this year’s TV business sales are expected to rise by 0.3% year-on-year to 553.6 billion KRW, marking an end to the sales decline over the past several years."

He added, "This year, MVNO sales are projected to grow by 6.2% year-on-year to 180.7 billion KRW. The MVNO market has been rapidly expanding recently, and the company’s subscriber growth is also showing a fast pace, with subscribers expected to reach 695,000 by the end of the first quarter." He also noted, "Expansion into new businesses such as rental services and electric vehicle charging services is also anticipated."

This content was produced with the assistance of AI translation services.