[Click eStock] "KT Strengthens Media and Content... Anticipates Collaboration with CJ ENM"

[Asia Economy Reporter Myung-hwan Lee] Daishin Securities announced on the 8th that it maintains a buy rating and a target price of 46,000 KRW for KT, citing expected growth in the media and content business centered on 'Studio Genie.'

KT's subsidiary Genie recorded sales of 80 billion KRW and a net loss of 16.4 billion KRW last year but aims to achieve operating profit this year. From 2023 to 2024, it plans to expand sales to around 300 billion KRW and pursue an initial public offering (IPO) by 2025. Including Genie, KT Group's media and content sales reached 3.6 trillion KRW last year. The content sales target for 2025 is approximately 5 trillion KRW.

On the 6th, KT presented its media and content business strategy centered on Studio Genie, announcing plans to produce about 10 dramas this year and 15 next year. Some works will also be released on global over-the-top (OTT) streaming services. KT plans to increase investment, allocating 500 billion KRW for content production by 2025. The investment funds will be secured through a virtuous cycle structure involving external investment attraction and revenue generated from production and sales.

Daishin Securities' analysis expects positive results from collaboration with CJ ENM. In addition to KT-affiliated paid broadcasting subscribers numbering 13 million, Genie can now supply content to CJ ENM platforms such as tvN, OCN, and tving. Strengthening KT's media and content business is also considered important for maintaining leadership in 5G penetration rates and wireless average revenue per user (ARPU) through killer services in the 5G era. Researcher Kim Hoe-jae of Daishin Securities assessed, "KT has secured the entire value chain of the media and content business, from original intellectual property (IP) to distribution."

Researcher Kim added, "Genie succeeded in attracting 100 billion KRW in investment from CJ ENM, achieving know-how acquisition in content production and additional platform expansion," and stated, "Ultimately, a merger between tving and Season is also considered possible."

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