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LG Uplus reports lower turnover in 3Q14 as handset revenues decline

29 Oct 2014

LG Uplus recorded a 4.1% year-on-year decline in turnover in the third quarter of 2014, as increased service revenues failed to offset a decline in handset revenues. In the three months ended 30 September 2014 LG Uplus generated a total turnover of KRW2.762 trillion (USD2.76 billion), down from KRW2.879 trillion, with handset revenues declining by 5.3% y-o-y to KRW666.9 billion. Service revenues however were up 1.2% against the corresponding period of 2013, at KRW2.090 trillion.

Operating income for the quarter under review rose by 17% y-o-y to KRW174.5 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) stood at KRW558.9 billion, up from KRW478.4 billion in 3Q13. Net income was also up against 3Q13, at KRW82.0 billion. Meanwhile, although capital expenditure rose to KRW472.1 billion in 3Q14 from KRW346.9 billion a year earlier, this was down significantly quarter-on-quarter from KRW66.92 billion; the company said this decline was ‘due to completion of wideband LTE-A investment’.

As at the end of September 2014 LG Uplus’ wireless subscriber base totalled 11.159 million, having increased by 4.2% year-on-year, with 4G subscribers accounting for an increasing proportion of that figure. At the end of the reporting period the number of customers signed up to the cellco’s LTE-based offerings reached 8.182 million, an almost 25% increase from the 6.549 million it had at end-September 2013. Fixed broadband accesses meanwhile stood at 3.010 million, up from 2.901 million, while IPTV customers numbered 1.875 million, from 1.439 million a year earlier.

South Korea, LG Uplus

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