"KT Expected to Achieve Highest Operating Profit in 10 Years"

[Asia Economy Reporter Park Soyeon] SK Securities expects KT to achieve its highest operating profit in 10 years this year due to strong performance in both wired and wireless sectors and cost stabilization, and forecasts a dividend increase of 350 KRW from the previous year to 1,700 KRW (dividend yield 5.2%).

According to FN Guide on the 25th, SK Securities recently projected in a report that KT will record operating revenue (net sales) of 24.7168 trillion KRW and operating profit of 1.498 trillion KRW in 2021.

With the 5G (5th generation mobile communication) subscriber ratio at 33.7% as of the end of October, maintaining a higher level compared to competitors throughout the year, wireless revenue is expected to increase by 3.2%. IPTV revenue is also anticipated to grow by 8.4% due to an expansion in IPTV subscribers and an increase in ARPU.

Next year, growth drivers such as balanced growth in wired and wireless sectors, expansion of B2B sales, and turnaround of subsidiaries remain valid, while the likelihood of special cost issues is low, so the profit growth trend is expected to continue.

Although there are concerns about ex-dividend effects due to high dividends, given the high possibility of top-line growth and profitability improvement in 2022 as well, the stock price is expected to maintain a steady upward trend.

SK Securities maintained its buy rating and target price of 42,000 KRW for KT.

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