LG Uplus records 35% increase in net profit in 1Q21

13 May 2021

South Korea’s LG Uplus has reported a total turnover of KRW3.417 trillion (USD3.03 billion) for the first quarter of 2021, up 4.0% year-on-year, with service revenues rising by 4.7% to KRW2.692 trillion, and handset revenue up 1.4% against 1Q20 at KRW725 billion. On the back of both the increase in revenue and a drop in marketing expenses, the company recorded an operating income of KRW276 billion in 1Q21, representing annualised growth of 25.4%, with EBITDA for the quarter under review standing at KRW871 billion, up from KRW812 billion a year earlier. LG Uplus reported a net profit of KRW201 billion for the opening three months of 2021, meanwhile, up 35% from the KRW149 billion reported for the corresponding period of 2020. Capital expenditure was broadly flat y-o-y, at KRW380 billion (1Q20: KRW375 billion).

In operational terms, LG Uplus reported that its wireless subscriber base had risen to 16.981 million as of 31 March 2021, representing a 9.4% y-o-y increase from 15.519 million previously. 5G accesses continued to account for an increasing proportion of the overall total, with the operator confirming that 3.335 million customers were using the latest generation of mobile broadband technology as of end-March 2021, more than double the 1.455 million it reported a year earlier.

The number of fixed broadband accesses on LG Uplus’ books also continued to increase, reaching 4.590 million at the end of the latest reporting period, up from 4.350 million at 31 March 2020, while pay-TV accesses rose by 10.4% y-o-y, to 5.076 million. Fixed voice connections maintained a downward trend, however, with PSTN lines falling by 1.5% to 484,000, while VoIP lines declined by 4.1% to 3.631 million.

South Korea, LG Uplus