April 25, 2024

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[THE INVESTOR] LG Uplus is showing a sharp advance in profits, said Mirae Asset Daewoo on July 27, raising the target price to 19,000 won (US$16.91) from 17,500 won.

As per its earnings report, operating profit in the second quarter climbed up 1.5 percent on-year to 211.1 billion won while revenue slipped 1.0 percent to 2.98 trillion won. Its unlimited LTE plan is attracting new subscribers while home media sector is growing steadily, said analyst Lee Hak-mu.

KT and SK Telecom also introduced limitless plans but not as unconventional as that of LG Uplus, and the firm will maintain a dramatic upturn in subscribers. A steady increase in number of users will boost its operating profit and differentiated IPTV contents will let it maintain the increase in new subscriptions. The company will further strengthen and maintain its profits momentum in the latter half, he underlined maintaining a “buy” recommendation. 

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