LG HelloVision Reports 30% Increase in Operating Profit Last Year... Dividend Expansion

Operating Revenue, Operating Profit, and Subscribers All Increased Year-on-Year
Strengthening Shareholder Returns Through Expanded Dividends, Achieving Qualitative Growth

[Asia Economy Reporter Lim Hye-seon] LG HelloVision announced on the 26th that its fourth-quarter operating revenue (sales) and operating profit increased by 6.3% and 60.5% respectively, reaching 283.9 billion KRW and 12.7 billion KRW. Annual operating revenue (sales) rose 2.1% year-on-year to 1.0801 trillion KRW, and operating profit also increased by 30.3% to 44.5 billion KRW. The increase in operating profit is analyzed to be the result of strengthened profitability through investment efficiency and cost reduction, as well as growth in other revenue sectors such as media and rental.

By segment, fourth-quarter HOME division revenue was 170.8 billion KRW (TV 137.9 billion KRW, Internet 29.4 billion KRW, Internet phone 3.5 billion KRW), and MVNO (Mobile Virtual Network Operator) division revenue was 41.6 billion KRW (service revenue 37.8 billion KRW, device revenue 3.8 billion KRW). Other revenue including media and rental reached 71.6 billion KRW, a 36.2% increase compared to the same period last year.

Fourth-quarter subscribers showed steady growth across all business divisions. In the HOME division, cable TV digital subscribers increased for the fourth consecutive quarter, and internet subscribers have maintained continuous net growth since 2020. The company explained that this is the result of ongoing efforts to improve the quality of broadcasting and internet services, such as the introduction of 'Disney Plus(+)' and expansion of gigabit internet coverage.

MVNO subscribers also increased for the fifth consecutive quarter. The LTE (4G) ratio (83%) maintained its highest level following the third quarter. Targeting young consumers who actively purchase unlocked phones, the company significantly improved MVNO SIM card accessibility mainly through non-face-to-face channels, which proved effective.

The increase in operating revenue in the other revenue segment in the fourth quarter was supported by growth in media and rental businesses. This is attributed to the expansion of regional channel competitiveness based on new original content investment and commerce broadcasting promotion, as well as the popularity of rental OEM products.

Jae-yong Ahn, Executive Director (CFO) of LG HelloVision, said, "Last year was a year in which we laid the foundation for a leap forward by simultaneously improving operating revenue and operating profit along with net subscriber growth in broadcasting and telecommunications," adding, "This year, we will strengthen the fundamental competitiveness of the entire business and focus on innovating customer experience to enhance qualitative growth."

Meanwhile, LG HelloVision plans to expand dividends to enhance shareholder value. The dividend per share will be raised from 75 KRW last year to 110 KRW, returning more than 30% of consolidated net income to shareholders.