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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘KT’s earnings solid amid regulation concerns’

  • PUBLISHED :May 08, 2018 - 11:14
  • UPDATED :May 08, 2018 - 11:14
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[THE INVESTOR] KT’s earnings in the first quarter were solid but regulations and governance issues are a concern, said Hyundai Motor Investment and Securities on May 8, lowering the target price to 37,0000 won (US$34.32) from 40,000 won while maintaining a “buy” recommendation. 




The telecom company reported that revenue in the period climbed 1.8 percent on-year to 5.71 trillion won while operating profit slid 4.8 percent to 397.1 billion won. Its earnings in the period were stable even considering the changes in accounting standards, as increasing subscribers to its services largely offset the uptick in optional plan’s discount rate and rate cut, said analyst Hwang Seong-jin.

Concerns over regulations do remain but equal distribution of total bandwidth is beneficial and opportunities for mergers and aquisitions in the broadcasting market will open up when the regulations on market share are lifted, said the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)

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