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LG Uplus Reports 3.9% Increase in Revenue in 1Q2023

Source: LG Uplus

In its 1Q2023 financial results, LG Uplus reported a 3.9% year-on-year increase in consolidated operating revenue to KRW 3.54 trillion ($2.66 billion), driven primarily by qualitative growth in its mobile business.

Service revenue increased 1.8% to KRW 2.824 trillion ($2.12 billion).

These results are attributed to innovative customer experience initiatives such as the industry's first 5G online-only plan and family bundle products, including low-cost handsets.

These efforts resulted in significant double-digit mobile subscriber growth and improved churn rates.

However, LG Uplus reported a slight decline in operating income of 0.4% year-on-year to KRW 262.2 billion ($197 million).

This was due to one-time expenses related to compensation for consumer damages from information leaks and DDoS outages and costs associated with strengthening information protection.

The company also reported a 9.2% year-on-year decrease in marketing expenses to KRW 534.3 billion ($401 million).

However, capital expenditures increased sharply by 43.6% year-on-year to KRW 519.2 billion (USD 390 million), reflecting the company's continued investment in improving network quality and expanding coverage.

The number of mobile subscribers increased by 11.3% to over 20 million, and the churn rate improved by 0.11 percentage points to 1.07%.

As a result, the company's mobile revenues increased 2.7% year-on-year to KRW 1.56 trillion ($1.17 billion), with wireless service revenues reaching KRW 1.47 trillion ($1.1 billion), up 3.2% year-on-year.

The "smart home" segment, which includes IPTV and high-speed Internet, continued to grow with revenues of KRW 594.3 billion ($447 million), up 2.2% year-on-year.

The increase was due to the addition of high-value high-speed Internet subscribers and activities to improve the viewing experience of existing IPTV customers.

The Enterprise Infrastructure segment recorded revenues of KRW 368.4 billion ($ 277 million), up 1.7% year-on-year.

The IDC business led the increase with revenues of KRW 76.6 billion ($ 57.6 million), up 19.9% year-on-year.

This year, LG Uplus will continue to invest in improving network quality and expanding coverage, including building 5G in-building infrastructure and securing open LAN technology.

In addition, the company plans to expand its mobile, smart home, and enterprise infrastructure businesses as part of these efforts.