LG Uplus achieved an operating profit of 344.5 billion won in the second quarter of this year, marking its highest quarterly performance to date.
The company reported consolidated revenue of 3.69 trillion won and service revenue of 3.08 trillion won for Q2, according to a disclosure on August 6.
While total revenue decreased by 3.9% compared to the same period last year, service revenue, excluding device sales, increased by 2%. The operating profit rose by 13.1% year-on-year, setting a record for the highest quarterly figure. However, this increase was influenced by one-time factors such as facility usage fees, and the adjusted operating profit growth rate was approximately 5%.
Net profit for the period was 217.7 billion won, a slight increase of 0.3% from the previous year. EBITDA, a key indicator of the company's cash generation ability, also rose by 5.9% year-on-year to 1.034 trillion won, with an EBITDA margin of 33.6%, up 1.2 percentage points from the same period last year.
Breaking down the figures, total revenue in the mobile sector increased by 0.9% year-on-year to 1.66 trillion won, driven by a net increase in subscriber lines and a higher proportion of 5G handset subscriptions. Excluding connection revenue, mobile service revenue reached 1.60 trillion won, up 1.2% from the same period last year.
The total number of mobile subscriber lines grew by 5.2% year-on-year to over 31.47 million, with a net increase of approximately 536,000 lines in Q2. MNO subscriber lines numbered over 22.44 million, while MVNO lines reached approximately 9.03 million, reflecting increases of 7.2% and 0.4%, respectively, compared to the previous year.
The number of 5G handset subscribers rose by 6.9% year-on-year to 9.55 million, resulting in a 5G penetration rate of 84.9% among all handset subscribers.
Revenue from the smart home sector increased by 4.3% year-on-year to 663.8 billion won, driven by growth in IPTV and high-speed internet subscriptions.
Internet revenue grew by 7.6% year-on-year to 325.1 billion won, with a net increase of 38,000 internet subscribers in Q2, bringing the total to approximately 5.68 million, a 3.6% increase from the previous year. IPTV revenue also rose by 2.1% year-on-year to 337.7 billion won, with IPTV subscribers reaching 5.78 million, up 1.3% from last year.
Revenue from the corporate infrastructure sector increased by 8.6% year-on-year to 464.4 billion won. Notably, the AIDC business saw a significant boost, achieving 124.1 billion won in revenue, a 28.9% increase year-on-year, driven by growth in colocation sales.
The solutions sector, which includes AICC and smart mobility businesses, reported revenue of 134.6 billion won, up 6.8% year-on-year, thanks to increased messaging revenue. Corporate line revenue rose by 0.2% to 205.7 billion won during the same period.
Yeo Myung-hee, Chief Financial Officer and Chief Risk Officer of LG Uplus, stated, "LG Uplus will leverage the changes brought by the spread of AI as new growth opportunities and enhance operational efficiency and profitability through company-wide AX, further strengthening our growth foundation."
* This article has been translated by AI.
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