1. What Happened? KT SkyLife Delivers Q1 Earnings Surprise
KT SkyLife reported KRW 170.4 billion in revenue, KRW 14.5 billion in operating profit, and KRW 10.6 billion in net income for Q1 2025. Despite revenue falling short of market consensus, both operating and net income showed strong growth, exceeding expectations.
2. Why? Mobile Business Growth and Efficient Cost Management
The primary drivers of this earnings surprise were the growth in subscribers for the ‘SkyLife Mobile’ MVNO service and efficient cost management. Enhanced competitiveness of TPS products and synergy with KT also contributed positively to improved profitability. The substantial growth in operating profit and net income, despite the decline in revenue, is a particularly noteworthy achievement.
3. What’s Next? Short-term Upside Momentum, Focus on Mid-to-Long-Term Growth
This earnings surprise is likely to act as a short-term catalyst for stock price appreciation. In the mid-to-long term, the continued growth of the mobile business and the successful establishment of new businesses will be key factors influencing the stock’s trajectory.
4. Investor Action Plan: Maintain Buy Stance, Monitor Growth Sustainability
Investors should maintain a buy stance in the short term and continuously monitor the growth of the mobile business, the sustainability of synergy effects with KT, and the tangible results of new business ventures to adjust investment strategies accordingly. However, it is also important to be mindful of risk factors such as intensifying competition in the pay-TV market and macroeconomic volatility.