[Click eStock] Focus on KT's Q1 Earnings

[Asia Economy Reporter Junho Hwang] Meritz Securities maintained its target stock price at 44,000 KRW on the 13th, stating that KT achieved an operating profit in the 500 billion KRW range in the first quarter of this year even excluding one-time gains.

KT's sales in the first quarter of this year amounted to 6.2777 trillion KRW, a 4.1% increase compared to the previous year. Operating profit also rose by 41.% to 626.6 billion KRW. The operating profit exceeded market expectations. In particular, even excluding one-time gains related to real estate sales of 74.6 billion KRW, the operating profit was 552 billion KRW, representing a 24.2% increase compared to the previous year. The combined operating profit of consolidated subsidiaries recorded 122.1 billion KRW even after removing one-time gains. 5G subscribers expanded to 6.95 million (penetration rate 30.1%), and the average revenue per user (ARPU) for wireless subscribers increased by +3.7% year-on-year to 32,308 KRW. Meritz Securities cited labor cost efficiency due to employee retirements and a reduction in marketing expenses following eased market competition as reasons for the improved performance.

Researcher Jisoo Jeong of Meritz Securities said, "Net profit is expected to rise due to improvements in separate operating profit this year, and shareholder-friendly policies are expected to continue next year," adding, "considering the growth potential of non-telecom subsidiaries, KT is judged to be the most attractive within the telecommunications sector."

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