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LG Uplus reports lower turnover in 2014 as revenue from handset sales declines

26 Jan 2015

South Korean multi-service operator LG Uplus has published its financial results for the three- and twelve-month periods ended 31 December 2014, with the company recording lower turnover as revenues from handset sales declined.

In the final quarter of 2014 LG Uplus generated total turnover of KRW2.683 trillion (USD2.48 billion), down from KRW2.948 trillion in the corresponding period a year earlier, while in the fiscal year under review revenues totalled KRW10.999 trillion, representing a 3.9% year-on-year decline. Notably, however, service revenues were actually up in both 4Q14 and FY14, rising 7.1% to KRW2.208 trillion and 7.0% to KRW8.379 trillion, respectively. By comparison, turnover from handset sales almost halved in the last quarter of 2014 to KRW470.7 billion, down from KRW883.5 billion in the final three months of 2013, while in the twelve-months ended 31 December 2014 handset sales generated KRW2.602 trillion, down from KRW3.599 trillion a year earlier.

LG Uplus meanwhile recorded an operating income of KRW190.6 billion in Q4 2014, up more than 52% when compared to the KRW124.9 billion reported in the same period of 2013, while full year operating income stood at KRW576.3 billion, up 6.3% y-o-y. Net income in the last quarter of 2014 totalled KRW85.3 billion, and while it represented more than 77% increase against the same period in 2013, full year net income was actually down 18.5% at KRW227.7 billion.

In operational terms, the number of customers signed up to LG Uplus’ 4G LTE-based services continued to climb, rising to 8.457 million at the end of 2014, up 19.2% year-on-year, and with such accesses now accounting for more than three-quarters of the operator’s entire wireless subscriber base, which stood at 11.267 million (Dec-13: 10.874 million). Fixed broadband accesses also rose in the year under review to reach 3.014 million at end-December 2014, up from 2.928 million a year earlier, while IPTV customer numbers reached 1.949 million, compared to 1.550 million at end-2013. PSTN subscriber numbers continued to decline, however, falling to 495,000 at the end of the reporting period, compared to 516,000 a year earlier, though the increase in voice-over-internet protocol (VoIP) subscribers – which rose from 4.121 million to 4.424 million – more than offset this.

South Korea, LG Uplus

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