LG Uplus (032640) Q2 2024 earnings summary

Executive summary

• Consolidated service revenue for Q2 2024 reached KRW 2.94tn, up 1.6% year-over-year, with wireless service revenue at KRW 1.52tn, up 1.7% year-over-year.

• Operating income declined 11.8% year-over-year to KRW 254bn, while net income fell 22.8% year-over-year to KRW 164.6bn.

• Launched new brand slogan emphasizing AI-driven digital transformation and introduced ixi-GEN, a generative AI model specialized in telecommunications.

• Established Voltup, an EV charging joint venture with Kakao Mobility, and acquired land for a hyperscale IDC in Gyeonggi Province.

• Focused on internalizing AI technology to enhance customer value and operational efficiency.

Financial highlights

• Operating revenue for Q2 2024 was KRW 3.49tn, up 1.9% year-over-year; service revenue up 1.6% year-over-year; handset revenue up 3.3% year-over-year.

• Q2 EBITDA increased 0.4% year-over-year to KRW 920.2bn, with an EBITDA margin of 31.3%.

• Operating expenses increased 3.5% year-over-year; marketing expense decreased 3.3% year-over-year, now 19.1% of service revenue.

• Q2 CAPEX was KRW 557bn, down 15.8% year-over-year but up 44.7% sequentially.

• Total assets grew 4.1% to KRW 20.93tn as of June 2024; cash and cash equivalents up 202.6% to KRW 1.89tn.

Outlook and guidance

• Plans to complete a hyperscale IDC in Paju by 2027 to meet growing AI and cloud demand, with advanced cooling and renewable energy systems.

• Focus on expanding EV charging infrastructure and AI-driven B2B solutions.

• Commitment to maintain annual cash dividends at or above 2023 levels, with interim dividend set at KRW 250 per share.

• Key AI projects in B2C and B2B to drive future growth and corporate value.

• Enterprise infrastructure business to focus on top line growth, especially in IDC, SOHO, and AICC segments.