Korea Telecom Services 2Q26E Performance Preview: Performance is mixed, AIDC optionality becomes focus (Goldman Sachs)
Goldman Sachs previewed the 2Q26E performance of South Korean telecom service providers and pointed out that the performance of different companies will be uneven.
Goldman Sachs previewed the 2Q26E performance of South Korean telecom service providers and pointed out that the performance of different companies will be uneven. Among them, LG U+'s revenue is expected to increase by 1% year-on-year, and operating profit is expected to increase by 4% year-on-year, basically in line with expectations. The core focus of the report is that each operator's investment and layout in the AIDC (AI Data Center) field is becoming a new valuation driver, which provides new growth options for traditional telecom stocks. One-sentence conclusion: Korean telecom operators' traditional business growth is weak, but the transformation to AIDC has provided them with new imagination space, and the market valuation system will be reshaped accordingly. The progress of AIDC implementation is the core variable of future stock prices. Positives/negatives: It is positive for Korean telecom operators (such as SK Telecom and LG U+) who are actively deploying AIDC. Weak performance in the traditional telecom business may have been expected by the market, and progress in AIDC will serve as a catalyst for rising stock prices. Catalysts: 1) The release of the official financial reports of each company in 2Q26; 2) The construction progress, customer signings and revenue contribution of each company's AIDC project; 3) The Korean government's investment policy in AI infrastructure.