KT - KT: Solid Earnings 5G Effects Materializing
Investment highlights
KT (KT) reported higher-than-expected earnings for 3Q19. The rise in 5G subscribers helped shore up mobile ARPU by 0.5% QoQ which led to 0.7% QoQ increase in mobile service revenue. The number of 5G subscribers stood at roughly 1.05mn as of end-3Q19, which translated to a penetration rate of 4.8%. Meanwhile, marketing cost inched up 1.2% QoQ, demonstrating the company’s relatively effective cost controls.
We expect the number of 5G subscribers to continue growing going forward alongside ARPU. In 4Q19, we may even see a YoY turnaround in ARPU. However, there