LG HelloVision, Cost reduction is the key point...Target stock price down(Meritz Securities)

[Infostock Daily= Reporter An Hoe Hyun] "As the domestic paid broadcasting market has been reorganized with a focus on IPTV, the exodus of cable TV subscribers is inevitable," said Meritz Securities on LG HelloVision  on the 20th, adding, "Combined promotion with LG Uplus and reducing network usage costs and content purchase costs are the key to improving corporate value."

As a result, the investment opinion was maintained 'Holding', and the appropriate stock price was lowered from 5,100 won to 4,600 won.

"The net reduction number of paid broadcasting subscribers recorded 42,000 persons in 2019, but the number of 5,000 persons has been reduced due to cumulative until the third quarter of this year," the company explained, adding, "Consolidated sales will fall by 1.6% next year to 1.41 trillion won and operating profit will increase by 22.1% to 40.5 billion won. It will be able to gradually improve its performance due to a drop in major operating costs such as telecommunication facility usage fees and depreciation costs."

Reporter An Hoe Hyun ahh@infostock.co.kr