DB Securities analyzed on the 27th that SkyLife is improving margins through overall operating cost efficiency. Accordingly, the investment opinion remains 'neutral', but the target price has been raised from the previous 5,500 won to 5,800 won.
SkyLife recorded an operating profit of 13 billion won in the second quarter this year, exceeding market expectations. In particular, the production cost amortization related to ENA content and program fees decreased by 20% and 13.7%, respectively, compared to the previous year.
Shin Eun-jeong, a researcher at DB Securities, noted, "In particular, ENA is maintaining a good performance with channel ranking at 8th and TV advertising market share at 6.3% due to the success of entertainment works such as 'I Am Solo', 'Nasol Four Seasons', and 'Grilled Rice'."
She added, "In the second half, it is expected that the cost-effective entertainment and drama lineups will be maintained," and, "It is anticipated that the core business will continue to expand TPS combined subscribers and encourage non-face-to-face subscriptions to sustain cost structure and expense efficiency strategies." Accordingly, DB Securities projected the annual operating profit on a consolidation basis to be 38.8 billion won.
Researcher Shin stated, "SkyLife launched the Internet-based 'iPit TV' in July," and added, "This offsets the existing SkyLife satellite broadcasting's drawbacks of quality degradation due to environmental and weather factors, while offering competitive pricing compared to large operators."
She explained, "The recent expected dividend yield based on the stock price is 6.6%, and 6% based on the target price," and noted, "Since it is a year-end dividend, the dividend attractiveness in the second half is also deemed effective."