[Click eStock] "LG HelloVision Improving Profitability Despite Cable TV and Budget Phone Slumps"

Growth in Rental Business and Cost Efficiency Effects... Growth Potential Expected with Proprietary Content

[Asia Economy Reporter Minwoo Lee] LG HelloVision is improving profitability through growth in the rental business and cost efficiency despite sluggish performance in cable TV and MVNO (Mobile Virtual Network Operator) businesses. It is analyzed that the company will continue its growth by strengthening content in the future.

On the 10th, SK Securities analyzed LG HelloVision in this way. Although cumulative sales up to the third quarter this year increased by only 0.7% compared to the same period last year, operating profit increased by 21.1% during the same period. SK Securities researcher Kwansoon Choi said, "Despite a 15.1% increase in other sales such as rentals, sales in the HOME segment including internet, TV, and internet phone, and the MVNO segment decreased by 1.8% and 4.4%, respectively. However, due to efficient cost execution, the operating profit margin rose from 3.3% to 4.0%, and especially the synergy effect from network sharing with LG Uplus, which the market expected, gradually materialized, which is positive."

It is expected to strengthen mid- to long-term competitiveness through securing content. Based on various content such as Disney Plus, Netflix, YouTube, and Idle Nara, it is expected to maintain existing subscribers while attracting new subscribers. Additionally, securing content such as airing the self-produced 'War of the Sword' was also cited as a positive factor.

The stock price, which once rose to 9,470 won due to anticipation just before the launch of Disney Plus, fell to 5,730 won as of the previous day's closing price. Considering this, SK Securities lowered LG HelloVision's target price by 25% to 6,300 won. The investment opinion was maintained as 'neutral.' Researcher Choi analyzed, "Considering the upside potential compared to the current stock price, the investment opinion is maintained as neutral, but it holds mid- to long-term growth potential through Disney Plus partnerships, original content production, and synergy with LG Uplus."

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