Shin Eun-jung, a DB Securities researcher, said on the 11th that Skylife's estimated dividend per share (DPS) for this year is 350 won. Based on the current share price, the dividend yield is about 6.6%, and because it is a year-end dividend, the dividend appeal remains valid through December.
On the day, Shin maintained a "hold" investment opinion on Skylife and kept the fair price at 5,800 won, the same as before. This is 9.6% higher than the previous day's closing price (5,290 won).
Skylife posted consolidation revenue of 246.9 billion won and operating profit of 16.5 billion won in the third quarter of this year. Revenue fell 3.9% year over year, but operating profit increased 793.3%.
Shin explained, "Operating profit beat market expectations due to retroactive application from program fee refunds, reduced depreciation through capital expenditure (CAPEX) investment efficiency for subsidiary ENA's content, and decreased marketing and sales expense."
Shin predicted that Skylife will grow through internet protocol television (IPTV). "The internet network–based 'ipit TV,' newly launched in July, reached 30,000 cumulative subscribers in Aug., 50,000 in Sept., and 77,000 as of Nov., easing the overall decline in broadcast subscribers," Shin said.
Shin added, "Although broadcast subscribers have recorded a net decrease, starting next year we expect a net increase in subscribers through ipit TV."
Shin also viewed positively that subsidiary ENA ranked ninth in channel ratings and, in particular, hit a record high 7.4% share of TV advertising thanks to the popularity of variety shows such as "I Am Solo," "Nasol Four Seasons," and "Jibokyeo."
However, Shin said, "In the early stages, profit is expected to lag due to reflecting expenses such as investment in new equipment, and it is still regrettable that the overall topline (total revenue) growth model is not yet clear."