New Street Research - KT Corp (ADR) (KTC) ... New Street: Korean telecoms: 5G continues to drive improving trends

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New Street Research

Alastair Jones

New Street: Korean telecoms: 5G continues to drive improving trends

This last quarter has again confirmed our positive view on 5G driving continued acceleration in revenue growth for the Korean telco industry.

26/05/2020 15 EN

Underlyings

KT Corp (ADR)

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US48268K1016 Berlin Stock Exchange South Korea

LG Uplus

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LG Uplus Corp

LG Uplus is engaged in the business of mobile telephone, communication, voice and data services. Co. provides the following services: cellular services; paging services, which provides paging via satellite, high speed paging, and interactive data transmission; IMT-2000 Services, which is wireless multimedia service accessible through a network based on wide band CDMA technology; and home solution services, which provides local, long-distance and overseas telephone services, broadband Internet services, and cable television transmission network services.

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KR7032640005 Korea Stock Exchange South Korea

SK Telecom

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SK Telecom Co. Ltd.

SK Telecom is a wireless telecommunications services provider in the Republic of Korea (South Korea). Co. provides the following services: wireless Internet services, which include music portal services, game portal services, multimedia services, and wired and wireless integrated multimedia services; ubiquitous and convergence services, which include telematics, digital home, commerce, mobile radio frequency identification and mobile community; international roaming services, which include global system for mobile communication; video telephony services, which enable subscribers incorporating video conferences, as well as B2B services.

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KR7017670001 Korea Stock Exchange South Korea

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Pan European Telecom Services and Cable

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Analysts

Alastair Jones

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New Street: Korean telecoms: 5G continues to drive improving trends

South Korean Telcos Q2 24 review: Softer but capex moderation remains encouraging

KT Corp (Buy, TP: KRW 70,000, +83%) Q2 24 Quick Take: Impacted by one-off cost and B2B restructuring

LG Uplus (Buy, TP: KRW 21,000, +112%) Q2 24 Quick Take: Decent net additions and capex move but profitability still under pressure

Transgene- TG4050 Advancing, New BT001 Data (TP EUR2.60 [3.20])

Rakuten (Reduce, ¥400, -56%) Rakuten selling a stake in Rakuten Card – highlights the extreme implied value of Mobile

Cityfibre and Hyperoptic Update from the latest accounts - material funding still needed

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