[THE INVESTOR] CJ Hello’s revenue and profits are improving regardless of hostile conditions, including competition with IPTV, MNO operator’s no-limit fare plans and lowering fares, said Mirae Asset Daewoo on Dec. 28 maintaining a “buy” recommendation and 12,000 won (US$10.72) target price. 

It will be able to save 40 billion won this year in customer service, including subsidies, as it persuades analogue users to go digital. Although the number of users is declining due to MNO operator’s limitless LTE plans and lower fares, it is defending itself with high average revenue per user, said analyst Lee Hak-mu.

Its profitability will recover in earnest next year as digital subscribers increase and VOD service boosts revenue. Its growing value in terms of M&A also is a plus. With IPTV providers gaining force and over-the-top content suppliers such as Netflix jumping into the paid television market, all cable TV companies have become potential targets for deals. It is not officially for sale but being the largest cable broadcaster, CJ Hello should be the most attractive, he emphasized.

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