LG Uplus (032640) investor relations material

Executive summary

• Achieved well-balanced growth across mobile, smart home, and enterprise infrastructure, exceeding initial guidance for Q1 2026.

• Consolidated service revenue reached KRW 3.04tn in Q1 2026, up 3.3% year-over-year, with operating profit rising 6.6% to KRW 272.3bn and an operating margin of 9.0%.

• Net income increased 8.4% year-over-year to KRW 176bn; EBITDA up 4.1% to KRW 958.8bn.

• Wireless service revenue increased 3.7% year-over-year, with total wireless subscribers up 6.4% and 5G penetration at 84.2%.

• Smart Home revenue rose 4.1% year-over-year, with broadband up 7.9% and IPTV up 1.5%.

Financial highlights

• Operating revenue for Q1 2026 was KRW 3.80tn, up 1.5% year-over-year.

• Operating expenses increased 2.9% year-over-year, with marketing expenses up 11.7% to KRW 614.2bn, accounting for 21.7% of service revenue.

• CapEx for Q1 2026 was KRW 317.2bn, down 4.8% year-over-year.

• Net debt to equity ratio improved to 53.1%, down 1.9 percentage points from FY25.

• Total assets remained stable at KRW 19.69tn, with total liabilities at KRW 10.64tn.

Outlook and guidance

• Emphasis on ROI-driven, quality growth and shareholder returns, with continued focus on telecom profitability, AX business momentum, and AI-led growth.

• Commitments to shareholders under the corporate value enhancement plan are being implemented as planned.

• Expectation of continued steep growth in AIDC and DBO businesses through 2026.

• Dividend payout ratio maintained at a minimum of 40%, with no year-over-year decline in cash dividends.

• Additional stock repurchase of KRW 80bn announced, and full cancellation of treasury shares completed.