[Click e-Stock] Spillover Benefit from SKT Hacking..."KT Millie's Library Enters Revaluation Phase"

On May 22, Hana Securities analyzed KT Millie's Library, stating, "Growth is inevitable as the company is benefiting from the repercussions of the telecom hacking incident." The firm did not provide an investment opinion. On the same day, Choi Jaeho, an analyst at Hana Securities, said, "Starting this year, KT Millie's Library has entered a definite period of valuation (stock price relative to corporate value) reassessment."

As of May 17, it was found that more than 360,000 subscribers had switched from SKT to KT and LG Uplus. Currently, over 10,000 subscribers are leaving SKT each day, resulting in a spillover benefit for competing telecom companies as their subscriber numbers increase.

Choi emphasized, "Attention should be paid to the accompanying benefit for KT Millie's Library." He explained, "In the first quarter of 2025, KT Millie's Library's revenue breakdown was 48.4% from B2C (business-to-consumer), 9.0% from B2B (business-to-business), and 41.3% from B2BC (affiliated customers). B2BC refers to revenue from subscription services provided through partnerships with telecom companies." He added, "What is particularly interesting is that the proportion of B2BC revenue is rapidly increasing due to the influx of new subscribers through telecom companies. The increase in new KT subscribers as a result of the recent telecom hacking incident will inevitably lead to an increase in new customers for KT Millie's Library."

He stated, "The actual number of subscribers to KT Millie's Library grew from 390,000 in 2021 to 830,000 last year. Considering that about 100,000 to 200,000 new customers have been joining each year, the influx of new KT customers due to the hacking incident (currently over 160,000) is a significant indicator." He continued, "In the first quarter of this year, revenue reached 20 billion KRW and operating profit was 3.7 billion KRW, representing increases of 18.9% and 29.6%, respectively, compared to the same period last year, marking all-time high results. The growth trend is expected to accelerate even further from the second quarter onward."

The increase in service pricing is also a noteworthy factor. Choi said, "KT Millie's Library has announced a new subscription fee policy for new members," and added, "Given the nature of the platform business, raising service prices has limited incremental impact on operating costs, which means it will inevitably lead to improved profitability. This indicates that the company has entered a phase of profit growth."