[Edaily Reporter Hyera Lee ] On the 22nd, DB Securities maintained its “Neutral” investment rating and target price of 5,300 won for KT Skylife Co., Ltd.(053210), stating, “Although IPTV subscriber growth continues, profitability improvements are limited due to rising marketing costs.”

Shin Eun-jeong, an analyst at DB Securities, stated, “While investment to expand IPTV subscribers is inevitable, it is now time to focus on cost efficiency,” adding, “Factors that could drive revenue growth amid a sluggish market remain unclear, and profit improvement through cost management is necessary.”
DB Securities projected that KT Skylife Co., Ltd. would post consolidated revenue of 249.8 billion won and operating profit of 12.2 billion won for the second quarter. These figures represent a 1.1% increase and a 5.8% decrease, respectively, compared to the same period last year.
Analyst Shin predicted, “Telecommunications revenue will increase due to growth in internet subscribers.”
However, he highlighted variables such as marketing expenses in the broadcasting segment. He predicted, “Despite the growth in IPTV subscribers, performance will be sluggish due to the decline in existing satellite broadcasting and GTS subscribers.” Analyst Shin projected that IPTV subscribers would exceed this year’s original target of 300,000. He explained, “The increase in IPTV subscribers will also have a positive impact on the expansion of internet subscribers.”
On the other hand, he noted that improving profitability remains a challenge, as costs—including marketing expenses, network usage fees, and installation fees—are rising in tandem with efforts to attract more subscribers. Analyst Shin stated, “Starting next year, the IPTV business must establish itself as a stable source of revenue.”
However, he viewed the programs produced by ENA, KT Skylife Co., Ltd.’s content subsidiary, positively. Researcher Shin predicted, “Thanks to the success of ‘I Am Solo’ and the drama ‘The Scarecrow,’ ENA will post solid results despite the sluggish advertising market.”
Researcher Shin emphasized, “Based on this year’s expected dividend per share (DPS) of 350 won, the dividend yield reaches approximately 8.7%, so the stock remains attractive for dividend investors,” but added, “I believe this is a time to identify factors that will drive revenue growth and manage overall costs.”