[EQUITIES] ‘KT to meet expectations in Q3’

[THE INVESTOR] KT will remain strong in the third quarter and meet the market consensus, according to Meritz Securities on Oct. 11.

The securities firm maintained a “buy” recommendation and the target price of 40,000 won (US$36.05).

The country’s largest telecom provider’s revenue in the third quarter will reach 5.66 trillion won, up 3.0 percent from the same period last year with a 386.8 billion won operating profit, a 12.7 percent rise on-year, said analyst Jeong Ji-su.

“In the wireless division, subscribers with second devices doubled to 80,000 and the subscription of GiGA internet service has already passed the 2 million mark,” he explained adding that “KT will increase its dividend this year to 800 won per share, and 2.6 percent price-dividend yield is amply attractive.”

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