LG U+, specializing in family-oriented content (Hyundai Motor Securities)
LG U+, specializing in family-oriented content (Hyundai Motor Securities)
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  • 승인 2021.11.18 08:51
  • 최종수정 2021.11.18 00:21
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LG U+
LG U+

It has been confirmed that LG U+ is trying to differentiate itself from its competitors with family-oriented content.

Through this, LGU+ has the highest average per subscriber (ARPU) among the three IPTV companies.

Hyundai Motor Securities said on the 17th that it will "buy" its investment opinion on LG U+ and maintain its target price of 18,000 won.

Hyundai Motor Securities focused on LG U+'s content differentiation strategy.

Hyundai Motor Securities explained, "Based on the differentiation of children's content that has become a children's country, we are accelerating our family-oriented specialization strategy by strengthening Disney Plus (+) alliance and cooperation with Kidzania and Legoland.".

As of September, Children's Country is a specialized service for infants with more than 50 million cumulative users. LG U+ has been expanding its family content by exclusively providing online video service (OTT) Disneyplus on its IPTV since the 12th, which has secured about 118.1 million users worldwide.

Hyundai Motor Securities analyzed that this strategy is the reason why LG U+ is the only one among the three IPTV companies to record 20,000 won worth of ARPU. IPTV ARPU of LG U+ in the third quarter (July-September) is 21,000 won. This is 20.7% higher than KT (1 7400 won).

Hyundai Motor Securities also mentioned the shareholder dividend policy. According to the company's website, LG U+ maintains a policy of returning more than 30% of its net profit to shareholders.

"The net profit this year is expected to be more than KRW 800 billion, and the total amount of dividends is expected to exceed KRW 240 billion. The annual dividend is KRW 550 per share (including KRW 200 in interim dividends) and the dividend yield is equivalent to 4%," Hyundai Motor Securities said.

Hyundai Motor Securities predicted, "As the increase in ARPU and profits due to the spread of fifth-generation mobile telecommunication (5G) will continue next year, the dividend per share will increase to KRW 600-650 and the dividend yield will be close to 4.5%.".

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com


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