[Click eStock] "LG Uplus Expects 1 Trillion KRW Operating Profit This Year...Continued Earnings Growth"

[Asia Economy Reporter Jihwan Park] Ebest Investment & Securities on the 8th issued a 'Buy' rating and a target price of 16,000 KRW for LG Uplus, expecting its performance growth to continue this year.

Researcher Seungwoong Lee of Ebest Investment & Securities stated, "LG Uplus is expected to continue benefiting from a favorable environment for profitability improvement," and forecasted, "This year's consolidated operating revenue is expected to reach 13.9 trillion KRW, up 3.7% year-on-year, and operating profit is expected to increase by 13.9% to 1 trillion KRW during the same period." He explained that the expansion of net 5G subscriber growth and the increase in IPTV subscribers centered on high-value customers will evenly contribute to the growth of both wired and wireless businesses.

Additionally, the continued increase in MVNO subscribers through partnerships with budget phone operators is also positive. Furthermore, a favorable environment for cost reduction is being created, including the easing of marketing competition and joint investment in 5G networks, which is expected to sustain profitability improvement.

Lee said, "We are aiming to expand market share in wired and wireless sectors and further increase average revenue per user (ARPU) by leveraging content competitiveness and targeting household-level segments," adding, "We offer various products combining existing 5G plans with Netflix, Chodeungnara, Google packages, and AR glasses." It is understood that Netflix attracts the 20-30 age group, Chodeungnara the 30-40 age group, and Google packages and AR glasses are drawing early adopters.

Lee added, "With the 5G smartphone lineup expanding into the mid-to-low price range, 5G is expected to enter a full-scale diffusion phase," and stated, "The easing of marketing competition has been maintained for over a year, creating a favorable cost environment for performance improvement, so the buy strategy remains valid."

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