Q3 Sales Increased by 2.3% to 3.5 Trillion
Wireless Business 1.5 Trillion... Operating Profit 254.3 Billion
LG Uplus's operating profit in the third quarter decreased by more than 10% compared to the same period last year due to the impact of electricity rate increases.
LG Uplus announced on the 7th that its third-quarter revenue (consolidated basis) this year reached 3.5811 trillion KRW, an increase of 2.3% compared to the same period last year. Service revenue, excluding device sales, also increased by 2.3% to 2.9052 trillion KRW compared to the same period last year.
However, operating profit recorded 254.3 billion KRW, down 10.8% from the same period last year due to the impact of increased electricity costs.
Marketing expenses were recorded at 553.2 billion KRW, a 2.0% decrease compared to last year. The marketing expense ratio against service revenue was 20.6%, improving by 0.9 percentage points compared to the same period last year.
The wireless business in the third quarter recorded sales of 1.587 trillion KRW, up 2.7% compared to the same period last year.
The total number of wireless subscriptions grew by more than 20%. The total wireless subscriptions in the third quarter reached 23.82 million, an increase of 22.3% compared to the same period last year, continuing a double-digit growth rate for six consecutive quarters. The net increase in subscriptions in the third quarter was 2.143 million, a 324.4% increase compared to 505,000 in the same period last year.
Sales from corporate infrastructure businesses, including new business for enterprises, Internet Data Centers (IDC), and line services, also continued growth with 404 billion KRW, up 7.9% compared to the same period last year.
IDC business sales in the third quarter increased by 18.2% year-on-year to 82.7 billion KRW, showing the highest growth among corporate infrastructure sectors. LG Uplus expects the growth momentum of the IDC business to accelerate once the data center 'Pyeongchon 2 Center,' completed last month, begins full operation.
Solution business sales reached 129.2 billion KRW, up 17.5% compared to the same period last year. LG Uplus provides car infotainment platforms to KG Mobility and Toyota, and supplies 'U+ Mobile TV' to Hyundai Kia Motors.
The smart home (Internet, IPTV) sector posted sales of 607.2 billion KRW, a 2.8% increase compared to the third quarter of last year.
Yeomyeonghee, LG Uplus Chief Financial Officer (CFO), said, "We are promoting stable growth through strengthening competitiveness in existing and new businesses while managing costs efficiently. Based on customer-centric management, we will do our best to achieve the annual management goals through qualitative growth across all business areas."
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