LGU+ Reports 13.5% Drop in Operating Profit Last Year... "HelloVision 130 Billion Won Loss"

Net Profit Drops 44% Year-on-Year to 352.9 Billion KRW

LG Uplus announced on the 20th that its operating profit for last year was tentatively estimated at 863.1 billion KRW (consolidated basis), a 13.5% decrease compared to 2023. Revenue recorded 14.6252 trillion KRW, up 1.8% during the same period.

Last year's net profit was 352.9 billion KRW, a sharp decline of 44% compared to the previous year (630.2 billion KRW). Earnings before income tax from continuing operations, calculated by subtracting non-operating expenses from operating profit, decreased by 36.6% to 488.9 billion KRW.

LG Uplus explained, "The decrease in earnings before income tax from continuing operations and net profit was due to impairment losses on tangible and intangible assets of its subsidiary LG HelloVision." Impairment loss refers to recognizing an accounting loss when the current value (recoverable amount) of an asset falls below its book value.

Regarding this, LG HelloVision stated, "Difficulties in the paid broadcasting market were reflected in the evaluation of goodwill and tangible and intangible assets, resulting in an impairment of about 130 billion KRW."

LG Uplus acquired CJ Hello in 2019 and changed the company name to LG HelloVision. Due to challenges in the cable broadcasting industry, LG HelloVision conducted its first-ever voluntary retirement program in November last year since its establishment.

This content was produced with the assistance of AI translation services.