[Concall] LG Uplus "Plan to Enhance Corporate Value to Be Announced Soon"

LGU+ Q3 Earnings Conference Call
Reason for Late Disclosure?..."To Review Next Year's Business Plan"

Yeomyeonghee, Chief Financial Officer (CFO) of LG Uplus, stated during the Q3 earnings conference call on the 8th, "The plan to enhance corporate value is somewhat prepared," adding, "We will finalize the review and report to the board of directors soon, then disclose it."

Regarding the delayed timing of the disclosure compared to competitors, Yeomyeonghee explained, "It is to review next year's business plan and present the target level of the corporate value enhancement plan based on it."

She continued, "While preparing the corporate value enhancement plan, we are closely examining our market indicators and market feedback," adding, "We will decide in a direction that improves long-term financial performance and increases corporate and shareholder value."

She expressed a positive outlook on next year's operating profit. Yeomyeonghee said, "Cumulative service revenue up to Q3 grew by 2.7%, exceeding expectations," and "This is expected to continue throughout the year."

Yeomyeonghee emphasized, "Operating profit continues to decline compared to the previous year due to revenue slowdown from the launch of mid-to-low priced plans and difficulties in offsetting increases in fixed costs such as labor and depreciation," but added, "We will improve profits through efforts to enhance profitability by business segment and reduce variable costs."

She added, "Cash flow is also expected to improve this year, which will allow us to consider various measures to enhance shareholder value from a long-term perspective."

Regarding the AI transformation (AX) strategy, she highlighted the company's differentiated competitiveness based on its small language model (sLLM) 'Ixigen.' Jihoon Kim, Chief Strategy Officer (CSO) of LG Uplus, said, "'Ixigen,' developed based on LG AI Research Institute's 'Exaone,' has strengths in cost-effectiveness and security," adding, "'Ixio,' launched yesterday, provides functions such as call content summarization and voice phishing detection on the device itself using an on-device method."

Kim CSO continued, "Starting with Ixio, we plan to connect AI agents within home appliances to evolve into personal AI agents," and "In the business-to-business (B2B) sector, we are expanding our business vertically with the industry's only AI data center (DC) that owns both domestic and international big tech companies, and 'Ixigen Enterprise,' a total AI solution for enterprises based on Ixigen."